21-04-2025
- Automotive
- Business Journals
Faraday Future anticipates 'short-term' impact from tariffs
THE REMAINDER OF
The Los Angeles EV maker is navigating the choppy waters of international trade policy, seeing both challenges and opportunities in recent tariff changes.
Faraday Future Intelligent Electric Inc. said over the weekend the Trump administration's tariff policy, which currently includes 145% tariffs on Chinese imports, could have a "short-term" impact on the electric vehicle maker's strategy.
In the mid- to long-term, however, the company (Nasdaq: FFAI) is eyeing these developments as a "strategic opportunity."
Faraday's reliance on Chinese original equipment manufacturers could present financial headwinds in the wake of the Trump administration's rising tariff proposals with China, and the company said in a Sunday statement that sourcing Chinese parts for its vehicles, which are assembled in the U.S., 'may bring short-term impact to the company's FX strategy,' referring to the new, less expensive Faraday car line that the company hopes to begin producing by the end of the year.
However, Faraday said that its FX line is "committed to progressively shifting to U.S.-based suppliers" and believes "this initiative will also encourage global automotive supply chain enterprises to establish manufacturing operations in the U.S."
The comments came after Faraday X CEO Max Ma participated in a business roundtable discussion at the White House last week that included tariffs and manufacturing, among other topics.
"The company is actively engaging with the U.S. government and has submitted constructive proposals regarding automotive policy, particularly involving U.S.–China cooperation in the EV sector," Faraday said.
Why Faraday Future aims to change its name
The Gardena, California-based EV maker additionally said that it aims to change its name to Faraday Future AI Electric Vehicle Inc. to better reflect its growing emphasis on using artificial intelligence in its products. Last month, Faraday changed its symbol on the Nasdaq Stock Exchange from 'FFEI' to 'FFAI' to reflect that AI emphasis.
Faraday scheduled an annual shareholders meeting for May 28 when stockholders will vote on whether to change the name of the company.
Faraday also said that after filing a Form D with the Securities and Exchange Commission on April 16, the company's stock fell below $1 per share, and rumors began circulating that it would initiate another reverse stock split.
'We resolutely oppose a reverse stock split and are fully committed to maintaining our Nasdaq listing,' the company said in a statement last week.
Shares closed Monday at 87 cents, below the Nasdaq's minimum $1 per share requirement.
In the past few years, Faraday has enacted several reverse stock splits to keep its shares trading above $1, but company officials said that there will be no reverse stock split proposal at the May 28 shareholder meeting.
Sign up for Business First's free daily newsletter to receive the latest business news impacting Los Angeles.
Reach Ben Miller at bwmiller@
