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Faraday Future (FFIE) Shares Surged 33% on the Huanggang Deal

Simon Mugo trader
Updated 18 Jan 2023

The Faraday Future Intelligent Electric Inc (NASDAQ: FFIE) share price surged 32.5% after announcing that it had signed a non-binding Cooperation Framework Agreement with the China Huanggang Government to promote its US-China dual-home market strategy.

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The company also revealed that it had signed an Amended and Restated Shareholder Agreement with FF Top LLC, a wholly-owned subsidiary of FF Global Partners LLC (FFGP).

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The newly-signed deal solidifies FF Top’s position as a leading shareholder with 1:10 super-voting rights, subject to shareholder approval, and 1:20 super-voting rights when Faraday Future’s market capitalisation hits $3 billion. 

In addition, the deal gives FF Top the right to appoint four of the seven members who serve on Faraday Future’s board and the right to approve specific financing actions pursued by the company. However, the board nominees suggested by FF Top must be verified and approved by FF’s corporate governance and nominating committee. 

The framework agreement signed by Faraday Future and the City of Huanggang requires the company to relocate its Chinese headquarters to support its US-China Dual DNA strategy and US-China dual home market. 

Faraday Future expects to start producing its FF 91 futurist electric vehicle in late March 2023, with the first production models rolling off the assembly line in April. The company has completed the construction and equipment installation in all vehicle assembly areas within its production facility. 

The company intends to maintain its global headquarters in Los Angeles, California, alongside its dual HQ in Huanggang, with the construction of the Chinese HQ being funded by the Huanggang Government guide fund, industrial fund, and the company itself. 

The City of Huanggang has agreed to actively help FF with the industrial layout of its operations and the deployment of relevant resources while providing support for FF’s business ventures in the city, including but not limited to financial and policy support. 

Investors cheered the partnership, as evidenced by FFIE’s stock price rally. However, the company still has to prove that it can produce the FF 91 and that there is demand for the vehicle. 

*This is not investment advice. 

Faraday Future (FFIE) stock price.

The Faraday Future (FFIE) stock price surged 32.48% to trade at $0.6286, from Tuesday’s closing price of $0.4745.


YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading