Asia Tech Wire (June 25) -- Shares of California-based electric car maker Faraday Future (NASDAQ: FFIE) fell more than 30% in pre-market trading on Tuesday.

This comes after the company's board of directors approved a proposal for a reverse stock split with a ratio range of 1:2 to 1:40.

And the proposal will be presented to shareholders for approval at the upcoming annual general meeting, Faraday Future said in a statement.

It said the proposal is designed to increase the company's stock price to mitigate the risk of delisting from the Nasdaq.

If the stock price naturally reaches long-term compliance levels, the company may choose to delay or not implement a reverse stock split, Faraday Future said.

So far this year, Faraday Future shares have been trading below $1 for an extended period of time.

And according to the Nasdaq market regulations, a listed company's stock price below $1 for 30 consecutive trading days will trigger the delisting process.

Faraday Future also received a letter from Nasdaq on April 24, stating that the Nasdaq staff decided to delist the company's securities from the Nasdaq Capital Market.

In order to maintain its listing status, the company filed a complaint with Nasdaq on May 1, hoping to maintain its listing through corrective measures.