Faraday Future Encounters Regulatory Roadblock as Nasdaq Issues Non-Compliance Notice.

Published / Modified Apr 21 2024
CSIMarket Team / CSIMarket.com

Faraday Future, the California-based maker of intelligent electric vehicles and a global shared intelligent mobility ecosystem company, has received a notice from Nasdaq, indicating that the company is not compliant with Nasdaq?s Listing Rule 5250(c)(1). The communication, termed as the Nasdaq Letter, was shared with the company on April 18, 2024, following standard Nasdaq procedures.

According to Nasdaq?s stipulations, Rule 5250(c)(1) requires all listed companies to file their annual reports containing audited financial information with the Securities and Exchange Commission on a timely basis, for the accurate and reliable determination of compliance with the listing requirements. The failure of Faraday Future to meet this filing requirement led to the issuing of the Nasdaq letter.

The company, listed as FFIE on the Nasdaq Stock Market, has not revealed the exact details behind the delay. However, it is worth noting that in order to regain compliance with Nasdaq's listing rule, Faraday Future can submit a corrective plan detailing how they intend to get their reporting back on track. The corrective action plan will then be evaluated by Nasdaq. If the plan is found satisfactory, Faraday Future could be granted an extension of up to 180 days from the Form 10-K's due date to regain compliance.

The Nasdaq Letter, although a serious note, does not immediately result in the delisting of a company's shares. The notification simply starts the process for possible delisting if the company does not rectify the default within the stipulated time frame.

At the same period, matters further became perplexing for Faraday Future as discrepancies arose in revenue reporting at the company's corporate client level. The company made no public comment on this particular condition, further adding to the ambiguity.

As Faraday Future strives to navigate its way out of these regulatory challenges, stakeholders and potential investors are expected to keenly watch how the electric car maker shapes its recovery strategy.


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