Game Over for FFIE 🥵🥵🥵
Faraday Future Intelligent Electric today announced its financial results for its fourth quarter and full year ended December 31, 2023.
FFIE
Positive Financial Results
For fiscal 2023, FF produced its first year of revenue as well as a reduced operating loss, and cash used in operating activities, while improving the composition of its balance sheet, as compared with fiscal 2022. These results were achieved through major cost reductions and cost discipline.
FF reported revenue of $0.8 million for 2023 and cost of goods sold of $43 million, compared with no revenue and cost of goods sold in 2022. This reflects that the Company only began delivering vehicles in the third quarter 2023. Loss from operations was $286 million for 2023, as compared to a loss from operations of $437 million for 2022. The change was due to a significant reduction in operating expenses which registered $244 million in 2023 compared to $437 million in 2022. The improvement in operating expenses for the year was primarily due to lower research and development expenses as the Company completed product development and transitioned to fulfilling sales through manufacturing and production. Net loss improved to $432 million for 2023, as compared to $602 million for 2022.
Poor Outlook - Booommmm...
However, Faraday mentioned that it was withdrawing its production forecast for 2024 due to current market conditions and levels of funding, sending its shares down more than 50% in premarket trading Wednesday.
Plunge show
With the massive drop in share price after today's earnings, Faraday will definitely be hit with a delisting notice from the Nasdaq soon over its failure to comply with rules that require a minimum closing share price of $1.
Game over for FFIE
With all the bad news and management failure to proof their capabilities to the shareholders and also the high risk of being delisted, I am definitely $Faraday Future Intelligent Electric Inc.(FFIE)$
Game over for FFIE!!! 🤯🤯🤯
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Faraday Future Intelligent Electric Inc. (FFIE) Stock Analysis
Business and Industry Overview:Faraday Future Intelligent Electric Inc. is an electric vehicle (EV) manufacturer. The company operates in the automotive industry, specifically focusing on the production and sale of electric vehicles. The EV industry is expected to grow rapidly in the coming years due to increasing demand for sustainable transportation and government initiatives promoting electric vehicles.
Earnings Analysis:
For fiscal year 2023, FFIE reported revenue of $0.8 million, compared to no revenue in 2022. This reflects the company's progress in delivering vehicles starting from the third quarter of 2023.
The cost of goods sold for 2023 was $43 million, indicating the expenses associated with manufacturing and delivering vehicles.
Loss from operations improved from $437 million in 2022 to $286 million in 2023, primarily due to significant cost reductions and improved cost discipline.
Net loss also improved from $602 million in 2022 to $432 million in 2023.
Trend Analysis:
The current stock price of FFIE is $1.17 (USD) as of May 29, 2024.
The support price on May 28, 2024, was $0.098 (USD), indicating a level at which buying pressure may increase.
The resistance price on May 28, 2024, was $1.668 (USD), indicating a level at which selling pressure may increase.
The average cost of FFIE stock on May 28, 2024, was $0.9363 (USD).
The capital flow data shows fluctuations in the inflow and outflow of funds over the past five days, indicating investor sentiment towards the stock.
Valuation Analysis:
Analyst recommendation for FFIE is "1 hold," suggesting a neutral stance from analysts.
News and Market Sentiment:
Faraday Future mentioned that it was withdrawing its production forecast for 2024 due to current market conditions and funding levels, leading to a significant drop in share price.
The company's failure to comply with Nasdaq's minimum closing share price requirement may result in a delisting notice.
Investment Analysis and Disclaimer:Considering the high risk associated with FFIE, including the withdrawal of production forecast, management challenges, and potential delisting, it is important to exercise caution when considering an investment in this stock. The stock has experienced significant volatility and uncertainty. Investors should conduct thorough research, analyze the company's financials, and consider their risk tolerance before making any investment decisions.
Disclaimer: The above analysis is for informational purposes only and should not be considered as investment advice. Investing in stocks involves risks, and the stock market is subject to fluctuations. It is important to conduct your own research and consult with a financial advisor before making any investment decisions.