Faraday Future (NASDAQ: FFIE) stock plummeted during intraday trading on Wednesday, continuing a downward trend that began earlier in the week.
Last week, Faraday Future (FFIE) experienced significant price volatility as part of a retail-fueled meme stock rally. This rally also boosted heavily shorted stocks like GameStop (NYSE: GME) and AMC Entertainment (NYSE: AMC). During the peak of this rally, FFIE stock surged by more than 8000%, but it reversed course on Friday and continued to decline.
On Tuesday, shares of Faraday Future dropped more than 20%, reflecting the diminishing momentum of the retail-driven rally. The company is grappling with severe financial challenges, including a delisting notice from Nasdaq on April 24 due to its share price remaining below 10 cents for ten consecutive days.
Faraday Future has an extraordinarily high short-interest rate, with 85.71% of its available shares sold short, according to the latest data from Benzinga Pro. Such high short interest can exacerbate price volatility, especially when combined with heavy trading volumes, as seen in the recent retail rally.
Investors and analysts are now awaiting Faraday Future’s upcoming financial report. The company has scheduled a conference call to discuss its fourth-quarter and full-year 2023 results on Tuesday, May 28, at 8:00 p.m. ET. Analysts are anticipating the company to report quarterly losses of $3.51 per share on revenue of $2.039 million.
Faraday Future (NASDAQ: FFIE) Stock Movement
On Wednesday, FFIE stock plunged 19.42%, closing at $1.12, marking a 58.87% increase for the week. The trading volume was 199,249,625 shares, significantly higher than the average daily volume of 141.60 million.
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