Omega88
07-01

Another potential bankruptcy?

I'm sure most of the Tiger friends are familiar with the meme stocks. Notably, one of the hottest meme stocks is $Faraday Future Intelligent Electric Inc.(FFIE)$   , which has a 3000% rally from ~$0.06 to ~$1.80 recently. However, recent data have shown that only ~7% of FFIE stock's float is being sold short as compared to a high of 95% back on May 22. Hence, it is unlikely to witness another short squeeze soon.

Furthermore, the rise of various EV companies has resulted in price war to fight for larger market share. Furthermore, the competition in the EV market has intensified as numerous traditional car markers (Mercedes-Benz, BMW etc) are also investing and building more EV units. To add on to the problem, its cash balance is low and it might be the next potential EV company to go bankrupt.

In addition, data shows that inflation is still sticky and the expected rate cut is decreased to probably 1 instead of 3. A relatively high borrowing rate would be bad news for all the EV consumers. $Tesla Motors(TSLA)$  $Rivian Automotive, Inc.(RIVN)$  $NIO Inc.(NIO)$  $XPeng Inc.(XPEV)$  

What do you think? Let me know your thoughts!

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