The stock of Faraday Future Intelligent Electric Inc. (FFIE) is declining in the current market. The stock was traded at $6.12 and declined 6.70% from the previously closed value. When the last trading session closed the stock closed at $6.57. The average volume of the stock traded in the trading session was around 1.87 Million. The reason could be linked to the investigation started by its board of directors in response to the fraud allegations and delay of quarter 3 results due to this specific reason.
Delay of the quarter 3 results and inaccurate disclosures allegations:
This year the company went public and they announced some forecasted reports for their upcoming financial quarter and business development. A data mining company also invested $25 million just before the electric startup went public. The company’s stock was going on an upward trajectory as they announced some big numbers in electric SUV’s reservations by the customers.
But J Capital accused the company of lying about those reservations. After which the Faraday Future Intelligent Electric Inc. (FFIE) announced a special committee of independent directors and hired a law firm to investigate the allegations. J Capital also accused the electric start-up founder JiaYuetingunfairly of taking advantage of the recent public listing.
The company is yet to announce its results for the 3rd quarter of 2021. This delay is due to the fraud allegations made against them. The board of directors wants to investigate the matter before announcing the 3rd quarter results.
However, the company announced that they lost $280 million in the 3rd quarter but affirms that they should deliver the goal in July 2022. Their financial results for the 2nd quarter were:
- Revenue is zero.
- Net loss was $52.78 Million.
- Total cash in hand was reported to be $52.53 Million.
The Faraday Future Intelligent Electric Inc. (FFIE) says that they are continuously working in order to complete the investigation, but they are not sure about the duration of the investigation, its outcome, or how it affects their financial results. The results of the investigation will have a strong effect on the credibility of the company and if the allegations prove to be true it will cost huge money to the investors who invested in Faraday Future Intelligent Electric Inc. (FFIE) stock.