Faraday Future alleges “coordinated effort” to undermine valuation

(Reuters) – Faraday Future Intelligent Electric on Thursday said it has recently observed a series of “suspicious activities” which the electric-vehicle startup believes suggested a “coordinated effort” to undermine its valuation.

The EV maker alleged efforts to spread misinformation and manipulate market sentiment.

Faraday did not immediately respond to a Reuters’ query seeking details on the claim.

The Los Angeles-based company said it intends to take legal action if it finds any illegal short selling and other market manipulation or misinformation.

In July, Faraday Future’s interim finance chief resigned, and the company said it will restate its financial statements for 2022 and the quarter ended March 2023 after it uncovered some errors, highlighting sustained turmoil at the EV firm.

The company has been roiled by a cash crunch and a governance dispute with one of its largest shareholders, FF Top Holding, which resulted in a board reshuffle.

It also faced delivery delays with its FF 91 2.0 Futurist Alliance vehicle, the first of which it delivered in August.

(Reporting by Mrinmay Dey in Bengaluru; Editing by Dhanya Ann Thoppil)