Faraday Future seeks stockholder approval for share increase

Published 08/08/2025, 21:38
Faraday Future seeks stockholder approval for share increase

LOS ANGELES - Faraday Future Intelligent Electric Inc. (NASDAQ:FFAI), which has seen its stock surge nearly 80% over the past six months according to InvestingPro data, announced plans to hold a Special Meeting of Stockholders on September 19 to seek approval for several strategic proposals, including a 39% increase in authorized common stock shares.

The electric vehicle maker, currently valued at approximately $246 million, is requesting stockholder approval to increase authorized common stock by 65.2 million shares to 232.5 million and preferred stock by 5 million shares to 17.9 million. According to the company, the additional shares would help meet obligations under its recently announced $105 million financing and support execution of its business strategy. InvestingPro data indicates the company faces liquidity challenges with a current ratio of 0.41, suggesting its short-term obligations exceed its liquid assets.

Other proposals include approval for issuing shares to holders of certain convertible notes and warrants, changing the company name to "Faraday Future AI Electric Vehicle Inc.," and increasing shares available under its stock incentive plan by 9.5 million.

Faraday Future reported that its FX Super One vehicle has secured over 10,000 paid pre-orders and entered trial production at its Hanford, California factory. The company plans to roll out its first vehicle by the end of 2025.

"We’re now in the final phase before the year-end rollout of the first FX Super One vehicle in the U.S. market," said YT Jia, Founder and Co-CEO, in the press release statement.

The company also noted that since Jia’s appointment as Co-CEO in April, its market capitalization has increased by nearly 300%. Faraday Future added that it has been included in the Russell 3000 Index and that institutional investors including BlackRock and Vanguard have increased their positions.

The company plans to announce what it calls a "major upgrade" to its business strategy at an event in Pebble Beach on August 16. According to InvestingPro’s Fair Value analysis, FFAI stock is currently trading near its Fair Value. Investors can access over 15 additional ProTips and comprehensive financial analysis for FFAI through InvestingPro’s detailed research reports, available for more than 1,400 US stocks.

In other recent news, Faraday Future Intelligent Electric Inc. has started trial production of its FX Super One model at its Hanford, California facility. This phase will focus on verifying production processes and ensuring quality standards. Additionally, Nature’s Miracle Holding Inc. has placed a non-binding pre-order for 1,000 FX Super One vehicles, valued at up to $100 million, contingent upon securing financing. Meanwhile, Faraday Future has secured approximately $105 million in new financing, which includes $82 million through unsecured convertible notes and warrants, along with $22 million from previous investors converting prior securities.

The company also disclosed receiving a Wells Notice from the U.S. Securities and Exchange Commission, indicating potential enforcement action related to alleged violations of anti-fraud provisions. This involves two current executives and two former employees. Furthermore, Faraday Future has amended a significant agreement with investors, modifying conditions related to a Securities Purchase Agreement initially filed in March 2025. These developments highlight significant financial and operational activities for the electric vehicle maker.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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