Faraday Future stock price in trouble as bankruptcy risks rise

Company Overview - Faraday Future's stock price has significantly declined, dropping over 17% in regular trading and an additional 20% in pre-market sessions [1] - The company announced a 40:1 reverse stock split to regain compliance with Nasdaq listing requirements, as its stock has consistently remained below $1 [2] Financial Situation - Faraday Future ended the quarter with less than $10 million in cash, which is critically low given its loss of over $80 million in the same period [4] - The company will need to raise cash soon to improve its balance sheet [4] Product and Market Challenges - Faraday Future is producing high-cost electric vehicles (EVs), with the Faraday FF91 priced over $309,000, making it more expensive than competitors like Tesla and Lucid Group [5] - The EV market is facing a slowdown, with many companies, including Tesla, reporting weak financial results amid increased competition [5] - Historical trends suggest that reverse stock splits may not be effective long-term, as seen with other troubled EV companies that have subsequently seen their stock prices fall below $1 again [5]