Faraday Future alleges "coordinated effort" to undermine valuation

(Reuters) – Faraday Future Intelligent Electric, an electric-vehicle startup, has reported a series of “suspicious activities” that it believes are part of a coordinated effort to undermine its valuation. The company has alleged efforts to spread misinformation and manipulate market sentiment. Responding to a query from Reuters, Faraday Future did not immediately provide further details about its claims.

The Los Angeles-based company has stated its intention to take legal action if it discovers any evidence of illegal short selling, market manipulation, or misinformation. This comes after the resignation of Faraday Future’s interim finance chief in July and the company’s decision to restate its financial statements for 2022 and the first quarter of 2023 due to errors.

Conflict and turmoil have been persistent challenges for Faraday Future, which has faced a cash crunch and governance dispute with FF Top Holding, one of its largest shareholders. These issues led to a reshuffling of the company’s board. Furthermore, the startup encountered delays in the delivery of its FF 91 2.0 Futurist Alliance vehicle, with the first delivery taking place in August.

Faraday Future’s struggles are evident in the continuous efforts to stabilize and strengthen its position in the electric vehicle market. The company’s global reputation has been impacted by internal and external challenges, including financial setbacks and delivery delays. Nevertheless, Faraday Future remains determined to address these issues.

This recent development showcasing suspicious activities has further added to the difficulties faced by the EV manufacturer. As the company works towards resolving these challenges, the potential impact on its valuation remains uncertain.

The outcome of any legal actions taken by Faraday Future may have significant implications for the future operations of the company. Addressing market manipulation and misinformation is crucial for maintaining transparency and trust in the electric vehicle industry.

As the situation evolves, industry observers and stakeholders will be closely monitoring Faraday Future’s progress in addressing these challenges. The company’s ability to stabilize its financial position, improve delivery schedules, and regain market confidence will be key factors determining its long-term success.

Reported by Mrinmay Dey in Bengaluru; Edited by Dhanya Ann Thoppil