Faraday Future Intelligent Electric (NASDAQ: FFIE) stock jumped over 130% in intraday trading on Thursday and has soared about 4000% in the past five days amid the meme stock rally.
Faraday Future Intelligent Electric (FFIE) has seen its shares skyrocket by about 4000% in the last four trading sessions, starting from a modest 4 cents per share on Monday. This surge comes amid a broader “meme stock” rally, where heavily shorted stocks, such as GameStop (NYSE: GME) and AMC Entertainment Holdings (NYSE: AMC), have experienced significant gains driven by retail investors.
Data from Benzinga Pro reveals that a staggering 85.71% of available Faraday Future shares are being sold short, contributing to significant price fluctuations, especially when combined with heavy trading volume. Thursday alone saw a record-breaking exchange of 1.09 billion Faraday Future shares, dwarfing the average daily volume of 86.89 million.
Faraday Future Faces Uncertain Future Ahead
Despite the recent meteoric rise in stock price, Faraday Future’s long-term outlook remains precarious. The electric vehicle (EV) manufacturer has been one of the poorest performers in the sector, having burned through over $3 billion in recent years. As of its latest financial reports, the company has only $6.7 million in cash while posting a net loss of more than $70 million.
Adding to the uncertainty, Faraday Future received a delisting notice from Nasdaq on April 24 after its share price remained below 10 cents for ten consecutive days. Additionally, the company hasn’t yet published its annual report, known as the 10K, exacerbating concerns about its financial health and operational transparency.
Amidst these issues, doubts linger regarding the potential market demand for its flagship vehicle, the FF 91. Priced at over $300,000, the FF 91 is significantly more expensive than competitors such as Tesla’s Cybertruck, which tops out at less than $150,000. This high price point from an unproven company could hinder demand, posing a substantial risk to Faraday Future’s success.
In summary, while Faraday Future has enjoyed a dramatic surge in its stock price due to the meme stock rally, significant challenges lie ahead. The company’s financial instability, looming delisting risk, and uncertain demand for its high-priced EVs raise substantial questions about its future viability.
Faraday Future (NASDAQ: FFIE) Stock Movement
FFIE stock surged 132.62% to close at $1.64 on Thursday, marking a 3939.41% increase this week.
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