Shares of electric-vehicle startup Faraday Future Intelligent Electric Inc. plunged 62% on Wednesday.
That marked Faraday Future’s largest single-day decline on record, based on available data going back to Aug. 28, 2020, according to Dow Jones Market Data. The stock, which ended the session at 44 cents, also registered its lowest close since May 14, when it closed at 29 cents.
Shares were weighed down by Faraday Future’s full-year results late Tuesday. The EV startup reported full-year revenue of $800,000, compared with no revenue in 2022, and a loss of $432 million, compared with a $602 million loss for 2022.
Faraday Future’s cash balance on Dec. 31, 2023, was $4 million, including restricted cash of $2 million, compared with cash of $17 million at the end of the prior year. As of May 23, Faraday Future’s cash position was approximately $5 million, which includes restricted cash of $2 million. The company only began delivering vehicles in the third quarter of 2023, it said. Faraday Future has yet to report first-quarter results.
Faraday Future’s stock traded on volume of 379.23 million shares, well above its 65-day average of 143.56 million shares.
The company’s stock went stratospheric on no news earlier this month amid the recent meme-stock rally. The EV startup’s shares surged to extraordinary levels, closing up 367.5% on May 14 and registering gains of 147.2% and 134% on May 15 and May 16, respectively.
In February, Faraday Future announced a reverse stock split and an updated plan for growth in 2024. But in April, the startup said that it had received a Nasdaq delisting determination letter, because its stock had a closing bid price of 10 cents or less for 10 consecutive trading days. Faraday Future said it is appealing the delisting determination.
Faraday Future shares are down 35.9% in 2024, compared with the S&P 500 index’s SPX gain of 10.4%.
Comments