FFIE Stock Alert: Faraday Future Takes Aim at Market Manipulation
Faraday Future (FFIE) promised to take legal action against market manipulation.
The company is celebrating delivery of its FF 91 electric car.
The stock has lost 95% of its value in the last year.
FFIE stock - FFIE Stock Alert: Faraday Future Takes Aim at Market Manipulation
Small electric vehicle company $Faraday Future Intelligent Electric Inc.(FFIE)$ rose 6% in pre-market trading after issuing a press release where it promised legal action against what it called “market manipulation” of its shares.
“If the Company finds any illegal short selling, other market manipulation or misinformation it intends to take available legal action,” the press release said.
Faraday Future’s Past
As some news have reported, Faraday Future has tried for years to make an electric car called the FF 91. It has been stymied by lack of capital.
The company was founded in 2014 with promises to start production in 2017. Co-founder Jia Yueting resigned in 2019 and filed personal bankruptcy.
For a time, Faraday had financing from property developer Evergrande, which filed for U.S. bankruptcy protection in August. The company is now led by Xuefeng Chen, who reorganized its management late last year.
Production of the FF 91 was due to finally begin last month.
After making its production promises, Faraday went through a 1-for-80 reverse stock split to maintain its Nasdaq listing. When I wrote about this early in August, FFIE’s market cap was $400 million.
Faraday is now planning a series of “Delivery Co-Creation Days,” starting this month, to celebrate the delivery of each car it makes. Shareholders are being invited to participate and visit the company’s Los Angeles offices.
What Happens Next With FFIE Stock?
Analysts are covering the latest press release without including background from Faraday’s own past press releases.
Claiming “suspicious activities” suggesting a “coordinated effort” to undermine valuation sounds great when you have a going concern. But when you’re still delivering individual cars in a market scaling to deliver millions of them, it’s legitimate to ask what is going on.
Source: MarketWATCH
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