The Faraday Future (NASDAQ: FFIE) stock price has tumbled as I predicted last week. It plunged by over 17% on Monday’s regular session followed by a 20% plunge during the pre-market session. Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.Faraday Future reverse stock splitCopy link to sectionThe stock crash happened after the troubled Tesla rival announced a new plan to regain compliance with the Nasdaq. In it, the company will implement a 40:1 revers ...

Financial Performance - Faraday Future had zero revenue in 2022 and generated $800,000 in revenue in 2023, indicating minimal progress [2] - The company reported a cost of goods sold of $43 million and a net earnings loss of $432 million in 2023, highlighting significant financial losses [2] - There is no production-target guidance provided for 2024, raising concerns about future operations [2] Regulatory Issues - Faraday Future is late in filing its required Form 10-Q for the first quarter of 2024, which is a significant compliance issue [3] - The Nasdaq exchange has warned Faraday Future about its late filings and the potential for delisting due to low share prices [4] - The company has violated Nasdaq rules by trading below $1 for 30 consecutive trading days and at 10 cents or less for 10 consecutive trading days [4][5] Stock Performance - As of the latest update, Faraday Future's share price is around 51 cents, which is above the 10-cent threshold but still below the $1 requirement [5] - The company is considered a high-risk investment with many operational and financial challenges, leading to doubts about its future viability [6]

Core Viewpoint - Faraday Future Intelligent Electric (FFIE) has experienced a significant stock price surge, but the company's fundamentals suggest it is an early-stage EV startup with high risks and limited rewards [1][2]. Group 1: Company Performance - FFIE built approximately 15 vehicles in the previous year and sold only four, indicating a lack of production and sales momentum [1]. - The company currently holds around 300 non-binding, fully refundable preorders, which is minimal compared to Tesla's previous 10,000 reservations [7]. - Search volumes for "FFIE" have decreased by 86% since mid-May, reflecting waning interest [6]. Group 2: Market Sentiment and Investor Behavior - Despite the stock's recent rise, social media discussions around FFIE have turned negative, with no significant chatter about potential returns [7]. - The company lacks a prominent figure like Keith Gill from the GameStop saga to generate excitement and attract investors [7]. - Historical trends show that meme stocks can experience a "double peak," but FFIE's current trajectory suggests it may not sustain investor interest [2][3]. Group 3: Management and Public Perception - FFIE's management has been criticized for being publicity-shy, especially after the dismissal of co-founder Jia Yueting, who was previously a media-savvy figure [7]. - The company's brand recognition is low, with many consumers unable to identify its flagship FF91 SUV [7]. - The overall market perception of FFIE is that it is too small to make significant impacts, and its financial situation raises concerns about its viability as a going concern [8].

Industry Overview - The electric vehicle (EV) industry continues to depend on subsidies and tax incentives to boost adoption, as high battery costs keep EV prices above those of average gasoline-powered cars [1] - Recent data from the NY Fed indicates rising delinquencies across all debt types, with auto-loan delinquencies at 8% and credit card delinquency rates at a 13-year high [1] Employment and Economic Sentiment - A decline of 625,000 full-time jobs in May, along with downward revisions in job reports, suggests a contraction in the economy, raising concerns for EV stock investments [2] Lucid Group (LCID) - Lucid Group's entry-level luxury sedan, the Lucid Air, is priced at approximately $71,000, higher than competitors like the BMW i5 [3] - In Q1 2024, Lucid's EV deliveries increased by 40% year-over-year, totaling 1,967 cars, but the company reported a net loss of $680.8 million, an improvement from a $779.5 million loss in the previous year [3][4] - The company ended the quarter with $2.16 billion in cash reserves after a $1 billion financing round, but its total revenue of $172 million fell short of the projected $182 million [4] - Year-to-date, LCID stock has decreased by 36%, nearing its 52-week low of $2.29 [4] Mullen Automotive (MULN) - Mullen Automotive focuses on utility vehicles, offering products like the Mullen One delivery van with a range of 110 miles and the Mullen Campus priced at $24,000 [5] - The demand for EV utility vehicles is questioned due to lower ranges and a recent drop in diesel fuel prices, which has affected market prospects [5] - Mullen reported a net loss of $193.9 million in fiscal Q2 ending March 2024, with only 362 vehicles delivered worth $16.3 million, leading to a 78% decline in MULN stock year-to-date [6] Faraday Future Intelligent Electric (FFIE) - Faraday Future's FF 91, launched after five years of delays, is priced at $309,000, with a cheaper model at $249,000, positioning it in the supercar category [7] - The company reported revenue of $784,000 in Q4 2023, with a comprehensive loss of $429.38 million, leading to a 99% drop in FFIE shares over the past year [7][8] - Despite reducing operating losses from $437.1 million in Q4 2022 to $286 million in Q4 2023, the company's financial viability remains uncertain, with $530.5 million in assets against $302.3 million in liabilities [8]

Faraday Future Intelligent Electric (NASDAQ:FFIE) may have dodged a bullet. The electric vehicle maker has been under the gun of seeing its shares delisted from the Nasdaq exchange. First, Faraday Future stock faced delisting because it failed to file its annual report in a timely manner and its stock was trading under $1 per share for 30 consecutive days. Then it was notified because FFIE stock had traded under 10 cents per share for 10 straight days it faced delisting, too.The EV maker got lucky because t ...

Premium electric vehicle (EV) manufacturer Faraday Future (NASDAQ:FFIE) — which sells electric-powered SUVs at prices rivaling homes in certain under-the-radar markets — saw its shares dip despite recent positive news. Faraday will start resuming deliveries after a four-month hiatus. However, the end result only articulates the severe challenges ahead for FFIE stock.According to industry publication EV, Faraday announced at the start of the business week that it will “deliver the first second-generation FF ...

Core Insights - Faraday Future Intelligent Electric (FFIE) is set to restart vehicle deliveries on June 12 after a four-month pause, marking a potential positive catalyst for the company [1] - The company plans to deliver the first edition of its second-generation FF 91 to a retail investor, which has led to a slight increase in FFIE stock [1][2] - Despite the delivery news, FFIE stock remains unstable, and the company faces significant challenges in demonstrating mainstream demand for its high-end electric vehicles [3] Stock Performance - FFIE stock has experienced volatility, initially benefiting from a rally in meme stocks but has since seen a decline in short interest [2] - The stock closed down by 0.08% on a recent trading day, indicating ongoing investor skepticism despite the delivery announcement [2] - The company’s business model raises concerns about profitability in the ultra-high luxury electric vehicle market, as highlighted by industry comparisons with peers like Lucid Motors [2] Market Outlook - While the resumption of deliveries is a positive step, investors are advised to remain cautious due to the company's ongoing financial losses and lack of a clear customer base [3] - Future stock movements may be influenced by retail speculation, but without evidence of strong demand, any gains could be short-lived [3]

Although struggling against severe financial challenges, Faraday Future (NASDAQ:FFIE) saw its shares jump 12% earlier on Friday. Upper management discussed strategic initiatives for the enterprise in a YouTube video. Still, FFIE stock appears to be a market gamble appropriate only for dedicated speculators.Faraday Future CEO YT Jia announced on the popular video-sharing platform that the company restarted deliveries of its electric vehicles (EVs). Notably, Jia disclosed the first delivery of an FF 91 — a fo ...

Core Viewpoint - Faraday Future Intelligent Electric (FFIE) stock is unlikely to experience another short squeeze, as trading activity has cooled off and short interest has significantly decreased since the recent rally [1][2]. Group 1: Stock Performance - FFIE stock reached a high of $1.80 per share during the recent short squeeze but has since declined to around $0.52, indicating a significant loss in value [2]. - The short interest for FFIE has dropped to 2.75% of its float from 95% on May 22, suggesting that short sellers are covering their positions [2]. - The current cost to borrow fee for FFIE is at 11%, which, while high, is not considered extreme [2]. Group 2: Company Challenges - Faraday Future is facing the risk of being delisted from Nasdaq and has withdrawn its production outlook following a disappointing earnings report [3]. - The company has issued a going concern risk in its Form 10-K disclosure and may seek bankruptcy protection unless new funding is secured [3]. - FFIE failed to timely file its Form 10-Q for the first quarter, further increasing delisting risks [3]. Group 3: Market Sentiment - The overall sentiment towards FFIE stock is pessimistic, as it has not shown any real signs of recovery and is losing investor interest [4]. - The stock's previous surge was largely driven by retail investor interest and speculation rather than fundamental strength [4]. - Investors are shifting their focus towards stronger electric vehicle producers as the excitement around FFIE diminishes [4].

The global electric vehicle (EV) market has captivated the attention of investors and analysts globally.  However, as with any market driven by hype and speculation, the allure of quick riches often overshadows the fundamental principles of sound investing. Faraday Future Intelligent Electric NASDAQ: FFIE is an EV startup that exemplifies this fact after becoming entangled in the world of meme stock trading and hypervolatility. Faraday Future provides investors and analysts a potent reminder that while the ...