Faraday Future shares rallied 117% in morning trading Wednesday.
The stock tumbled 18.7% on Tuesday after the electric vehicle (EV) company announced plans to regain compliance with Nasdaq listing rules.
The biggest blow to FFIE stock comes from the EV company’s plans for a reverse stock split. Faraday Future intends to enact a reverse stock split to boost the price of its shares above the $1 minimum bid price required to remain on the Nasdaq.
Faraday hasn’t nailed down the exact details of the reverse stock split just yet. However, we know the company is aiming for the ratio to range between 1-for-2 and 1-for-40.
It’s likely that Faraday Future will aim for a higher ratio with its reverse stock split. The company notes this would “provide a margin of safety for the stock price over the longer term.”