Short Interest in Faraday Future (FFIE) Stock Falls Below 3%

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 Group 2: Company Challenges - Faraday Future is facing the risk of being delisted from Nasdaq and has withdrawn its production outlook following a disappointing earnings report [3].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].