It takes a brave heart to invest, or rather speculate in $Faraday Future Intelligent Electric Inc.(FFIE)$ as unpredictable swings between intraday gains and losses almost every trading day, presumably as the meme community and the fundamentalists engage in daily tug-of-wars, despite lack of new news that may explain the wild swings. The former has apparently been short-squeezing the stock as its share price would rocket for no fundamental improvement. On the other hand, the latter has been taking every rising stock price to short-sell as the electric vehicle maker continues to struggle under deteriorating fundamentals with worsening balance sheet and slowing demands. I've no intent to partake in these speculative trades and be caught in the crossfires. Short of a convincing turnaround strategy to achieve profitability, I doubt the proposed share consolidation is going to save the company and I suspect that it will just be a matter of time before the company becomes history.
$Rivian Automotive, Inc.(RIVN)$ recently scored a victory after the EV maker disclosed that Volkswagen would invest up to $5 billion in a new joint venture. Volkswagen must have found value in Rivian's EV technology and its capability of helping the conventional car maker gain a foothold in the highly competitive EV market. News of fresh capital allays concerns over Rivian’s cash flow to support the launches of its next-generation SUVs. The Volkswagen-Rivian partnership has brought much cheers to RIVN's stock price, keeping it buoyant. With its next-generation line of EVs being rolled out appearing to be well received by the market, it may be time to watch this Tesla-wannabe before it flies to the moon.
The Chinese EV trio $NIO Inc.(NIO)$ , $XPeng Inc.(XPEV)$ and $Li Auto(LI)$ have not much to cheer about though. Slowing global demands for EV have also been affecting the Chinese EV startup trio, while adding to their woes is a growing number of conventional car makers jumping onto the EV bandwagon intensifying the competition and resulting in an oversupply, that has also led to an inevitable price war to clear inventories and keep their production lines running. As the trio struggles to find enough buyers to sustain growth, their stock prices have been struggling to regain their past glories too.
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