As part of its merger with PSAC, Faraday will get gross proceeds of about $230 million in cash held by PSAC in trust and $775 million in PIPE at $10 per share. PIPE investors include the top three Chinese OEMs (original equipment manufacturers), including Chinese automaker Geely Automobile. Faraday will use the funds to launch its flagship model, the FF 91. The luxury EV (electric vehicle) is expected to go into production in 2022.
Auto investors should be cautious with Faraday stock. While sales of EVs are certainly expected to skyrocket in the coming years, Faraday has a long and troubled history. The company has been on EV investors’ radar after it made a big splash at the Consumer Electronics Show (CES) in 2016.
However, Faraday later burned through $2 billion, almost went bankrupt, and lost a co-founder and the majority of its early employees. Furthermore, Faraday could face intense competition from Lucid Motors’ Air, Tesla’s Model S, and General Motors’ Cadillac.
View more information: https://marketrealist.com/p/will-faraday-stock-rise-or-fall-after-psac-merger/