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Shares of American technology start-up Faraday Future (NASDAQ:FFIE) are down as much as 26% on Friday after the company revealed that production plans for its much-delayed luxury electric car may depend on securing additional financing.
Faraday disclosed Thursday that the company is in talks with new and existing investors to raise the $150 million to $170M in capital that is needed in order to start production of the FF 91 Futurist in March.
Faraday Future said it had $22.5M in cash as of Nov. 30, down from $31.76M at the end of the third quarter.
“We’ve implemented a number of cash conservation measures that have significantly reduced our spending to core items that are essential to delivering the FF 91 Futurist,” interim Chief Financial Officer Yun Han said on Thursday.
Great Hill Capital Chairman Thomas Hayes said the company may face difficulties raising funds, adding, “Only hope is if they can get existing investors who are stuck to double down.”
Shares of FFIE are down 26.16% in mid-day trading on Friday.
