Shares of Faraday Future Intelligent Electric Inc soared about 28% in premarket trading on Monday after the company said it had raised enough funds to start production of its electric luxury car FF 91 Futurist in March.
Delivery of the sports utility vehicle, originally slated to start in late 2022, will now begin before the end of April, the company said on Sunday.
The development offered a spot of relief to investors who have seen the stock plummet 92% since listing in July 2021 as the loss-making startup grappled with a boardroom battle, governance issues and a dwindling cash balance that hurt its production plans.
The company plans to hold an investor meeting on Feb. 28 to vote on a proposal for increasing its outstanding stock, which it said will allow for future financing to support deliveries.
Major shareholder FF Top Holdings, which has an 8.4% stake in the firm, has agreed to support such a proposal at the shareholder meeting, it said.
Los Angeles-based Faraday has moved to save cash in recent months by slowing development of future cars. It had $22.5 million in cash as of Nov. 30, down from $31.76 million at the end of the third quarter.
In November, Faraday Future named its China head Xuefeng Chen as chief executive officer after Carsten Breitfeld was asked to resign following a review of the company’s performance since it went public in 2021.
Its shares rose to $1.38 before the bell on Monday.