On Friday, beleaguered specialty electric vehicle (EV) maker Faraday Future Intelligent Electric (NASDAQ: FFIE) was about to pull off a major piece of financial engineering. In line with its stated plans, and in accordance with a recent shareholder vote, it scheduled a reverse stock split for later that afternoon.

A reverse stock split is largely seen as a desperation move by a company in poor financial circumstances. Not surprisingly, investors traded Faraday stock down sharply on the news. The company's share price was nearly 16% in the red in late-session trading. 

Faraday, one of the companies occupying the luxury niche of the EV market, said on Friday that it will engineer that reverse stock split at a ratio of 1-for-80. This is to be made effective at 5 p.m. Eastern time that day. The stock will start trading at the new level the following Monday.

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Source Fool.com