Palantir-Backed Faraday Future Defers Delivery Timelines, Cites Supplier's Timing Constraints This Time

California-based EV startup Faraday Future Intelligent Electric Inc FFIE on Friday said it would defer the second delivery phase of its limited edition FF 91 2.0 Futurist Alliance. The company has pinned the delay on the supplier’s timing constraints and the time needed for additional safety testing.

What Happened: The second phase will now start in August instead of the second-quarter end, the company said in a statement on Friday.

The company also announced plans for a reverse stock split to enable a range of investment opportunities otherwise difficult owing to the stock’s current low price. The stock split is also aimed at increasing the market price of the class A common stock to avoid the risk of it being delisted from Nasdaq capital market. Nasdaq’s listing rules require companies to maintain a minimum closing bid price of $1 to remain listed. The proposal is, however, subject to stockholder approval.

The company has also filed for approval from the Securities and Exchange Commission to issue class A common stock and/or warrants up to $300 million.

Why It Matters: Faraday Future, backed by data analytics company Palantir Technologies PLTR, faced several delays on its flagship FF 91 Futurist and a lack of funding. Though initially expected to go into production in 2018, the vehicle is yet to be delivered.

The FF 91 2.0 Futurist Alliance debuted late last month and is priced at $309,000.

Price Action: Shares of Faraday Future closed at $0.4498 on Friday, according to data from Benzinga Pro.

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