To The Moon

🌟🌟🌟🌟$Faraday Future Intelligent Electric Inc.(FFIE)$  is a classic meme stock that is akin to riding a roller coaster.  In May Faraday Future had an  eye popping rally. It was up 5 days in a row and gained a massive 5200% over that time.  Faraday Future skyrocketed to finish at USD 2.12, its highest level since November 14 2023 when it finished at USD 2.49.

However Faraday pared back their recent gains on Wednesday  when it plunged 62%.  This is Faraday Future's biggest single day decline on record.  It ended that session at 44 cents per share. 

Faraday Future's shares were weighed down by its full year results late Tuesday.  It reported  full year revenue of USD 800,000 compared with no revenue in 2022 and a loss of USD 432 million, compared with a USD 602 million loss for 2022.

Faraday Future's cash balance on December 31 2023 was USD 4 million , including restricted cash of USD 2 million compared with cah of USD 17 million at the end of the previous year.

As of May 23, Faraday Future's cash position was approximately USD 5 million which includes restricted cash of USD 2 million.  Faraday Future only began delivering vehicles in 3Q 23.  Faraday Future has yet to report its Q1 24 results.

In February, Faraday Future announced a reverse stock split and an updated plan for growth for 2024.  This is Faraday Future's 2nd reverse stock split in 5 months. 

However in April Faraday Future received a Nasdaq delisting determination letter because it had a closing price of 10 cents or less for 10 consecutive trading days.  Nasdaq has a ruling that requires stocks to be at least USD 1 per share for that duration.

Faraday Future has so far produced 11 Vehicles of its FF91 EV.  However it faced a vehicle recall due to a software issue that prevents the airbag malfunction light from illuminating in an accident. 

Faraday Future also had difficulty in paying its rent for its Headquarters in Los Angeles. 

At USD 300,000 per vehicle for its FF91 Futurist Alliance EV, it is hard for Faraday Future to sell its EVs.  Only the ultra rich can afford them. 

So I do not believe that things will improve for Faraday Future in the short to mid term as EV companies are facing intense competition. 

Faraday Future is a classic meme stock.  Its price momentum  is due to short squeeze potential and other market related factors.  It is definitely not due to business fundamentals. 

Performance wise Faraday Future is up 3.2% today but is down 57% for the past 5 days. 

Faraday Future faces an uncertain future if its cash burn continues and is in danger of being delisted by Nasdaq since its share price is now below the USD 1 threshold required by Nasdaq. 

Faraday Future may yet surprise us next week with some mind boggling roller coaster ride but as a risk adverse investor, I prefer to stay away as JOMO or the Joy of Missing Out is a safer option in a volatile market. 

@Daily_Discussion  @TigerStars  @MillionaireTiger  @Tiger_comments  @CaptainTiger