$Faraday Future Intelligent Electric Inc.(FFIE)$ spikes after its reverse split. However, the electric vehicle maker continues to struggle under deteriorating fundamentals with worsening balance sheet and slowing demands. It remains pricey to me for lack of supporting fundamentals that would justify its valuation. Any rally would appear to be another round of short-squeezing by the meme community to make quick bucks on the counter. However, I believe that the rallies will be short-lived, and the downward spiral will resume once the fundamentalists regain command.
Short of any turnaround strategy, I doubt that the shares consolidation is going to save the day for Faraday Future.
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Comments
The recent surge in Faraday Future looks like a short-term play by meme traders. Unless fundamentals improve, I’m not buying in. 📉
A temporary price increase doesn’t change the fundamental weaknesses. Without a strong turnaround plan, the rally might not last.