FFIE: Profits Soar or Earnings Dive?

$Faraday Future Intelligent Electric Inc.(FFIE)$ 

When US market closed on Fri, 12 Apr 2024 - this is how Faraday Future stood from financial standpoint:

Shares price - $0.08.

1-year low: $0.08.

1-year high: $117.36.

Debt-to-equity ratio: 0.39.

50-day moving average price: $0.17.

200 day moving average price: $1.22.

Market capitalization: $3.39 million.

PE ratio: 0.00

Beta: 1.45.

On Mon, 15 Apr 2024, Faraday Future is supposed to be reporting its Quarterly earnings. Is it true ? I dunno for sure.

On the eve of a possible announcement, we could review its earnings so far. (see below)

Since day 1, Faraday Future has never made a profit.

Its losses increased in the first 3 years of operations.

While it is usually the case for new startups, the draw back for Faraday Future was that its output volume never ramp up correspondingly throughout 2022 and 2023.

I strongly believed that success for any EV maker lies in the ability to scale its output and when that is achieved, it could reap the benefits of economies of scale.

Noticed too that Q4 2023 quarterly earnings is missing from the chart.

According to a 02 Apr 2024 filing by Faraday with the SEC, the delay was (a) mainly related to staffing-related challenges in the company’s accounting group and (b) deferred payments to third-party audit consultants who have been assisting with the quarterly earnings compilation.

They are expected to submit by end April 2024.

It is because of this statement that I suspect the quarterly earnings will not be out anytime soon.

In a post by Defense World dated 14 Apr 2024, it has reported that following institutions have added more Faraday’s shares to their holdings, despite recent turbulence.

These companies are:

(1) Ensign Peak Advisors Inc: lifted its position in company’s shares by +53.2% (or 6,080 shares) during the 1st quarter. It now owns 17,500 shares (valued at $87,000).

(2) Virtu Financial LLC grew its holdings by +16.3% (or 7,039 shares) in Q1 2024. It now owns 50,121 (valued at $250,000).

(3) Principal Financial Group Inc. added Faraday shares (valued $27,000) to its holding in Q2 2024.

(4) Walleye Capital LLC also newly added Faraday shares (valued $70,000) to its holdings in Q1 2024.

(5) Point72 Hong Kong Ltd also newly acquired Faraday shares (valued $44,000) in Q2 2024.

All in all. collectively institutional investors and hedge funds own 71.74% of the company’s stock.

Recovery Odds.

With (1)  the setup of its Dubai office and also (2) institution buyers stake in the company, what are the odds that Faraday Future will be able to turn the company around or at least exhibit recovery green shoots by end 2024?

To me it is still the same answers: (1) Ramp up production to meet demand and (2) Secure a white knight that is willing to take a risk with the company and its rich Intellectual Property on its EVs.

Then maybe, just maybe - it might be able to pick itself up from where it fell.

Afterall, this is a company whose stock price was $117.36 per share at its 52-weeks high.

- Do you think Faraday Friday will be able to find its White knight in shiny armour to get out of the rut?

- Do you think it can survive until end 2024, that might mark the beginning of a new era for Farady.

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