Faraday Future stated that it received a notice from Nasdaq on December 28 that it was delisting or not in compliance with continued listing rules. According to the closing bid price of the company's common stock, it failed to maintain the minimum bid price requirement of at least US$1 during the 30 consecutive trading days from November 9 to December 27 this year, and failed to comply with Nasdaq Listing Rule 5550(a)(2) (the "minimum bid requirement").

On Friday, Faraday Future’s share price fell 10.9% to close at US$0.23 per share, with a market value of less than US$30 million.

On the 29th local time, the Nasdaq Exchange stated in an email reply to a reporter from China Business News that it is recommended to consult relevant companies for more details on specific cases.

This is not the first time Faraday Future has received a similar warning letter. According to reports, Faraday Future received a letter from the Nasdaq listing qualification department on November 17, 2021 due to failure to submit financial reports within the prescribed period.

It is worth noting that Nasdaq publishes a list of companies that do not meet the continued listing standards on each trading day. Typically, a company will be placed on the "Non-Compliant Companies" list five business days after receiving notification from Nasdaq of non-compliance. The above-mentioned companies will be removed from the list on the second business day after Nasdaq re-determines that it meets the listing standards or is no longer trading on Nasdaq. Currently, Faraday Future does not appear on this list.

Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company has 180 calendar days, until June 25, 2024, to regain compliance with the minimum bid requirement. During the compliance period, the Company's Class A common stock will continue to be listed and traded on Nasdaq. To regain compliance, the closing bid price of the Company's Class A common stock must be at or above $1 per share for at least 10 consecutive trading days. If Faraday Future is unable to regain compliance with Rule 5550(a)(2) by June 25, 2024, the company may be granted an additional 180 calendar days to regain compliance. In addition to the minimum bid requirement, the company is required to meet continuous listing requirements for the market capitalization of its publicly held shares and all other initial listing standards on Nasdaq Capital Market. In addition, during the second compliance period, Faraday Future will be required to notify Nasdaq of its intention to correct the error, which may include implementing a reverse stock split if necessary.

If Faraday Future fails to regain compliance with Rule 5550(a)(2) by June 25, 2024 and is not eligible for an additional compliance period, Nasdaq will notify the company that its securities face delisting. At that time, the company can appeal to the Nasdaq listing eligibility review panel. The company's shares will remain listed pending the review panel's decision.

On July 22, 2021, Faraday Future listed on Nasdaq through a merger with the special purpose acquisition company (SPAC) Property Solutions Acquisition Corp. The stock code is "FFIE", the issue price is US$13.78, and the closing price on the day of listing was US$13.98. Since then, the company's stock price has been falling.According to the above regulations, Faraday Future needs to increase its stock price to US$1 and above before June 25 next year and maintain it for at least 10 consecutive trading days.

Faraday Future announced a reverse stock split in August this year, but since September, the company's stock price has fallen by about 96% due to cash crunch and supply chain problems. The company announced in late September plans to raise $90 million through a stock offering to bolster its cash balance. In addition, the company was sued by its major shareholder FFTop Holding in September 2022, and finally reached a corporate governance restructuring agreement.