Faraday Future.. Do you still trust its future? 🧐🤔
I believe for those who actively invest in EV stocks, you should be familiar with the EV meme, Faraday Future! On Monday, Faraday unveiled its plan to regain compliance with Nasdaq's $1 minimum bid price requirement. This involves a proposal at the company's upcoming annual meeting of stockholders. The meeting will be held in July, although Faraday hasn't decided on a specific date yet.
Faraday Future's FF91
Reverse stock split again!
The proposal is a reverse stock split in a ratio between 1-for-2 and 1-for-40. The ratio will likely be much higher than 1-for-2, as Faraday stated that it would seek a stock price of at least $5 following a reverse split.
FFIE stock must close at $1 or higher for at least 10 consecutive business days in order to regain compliance with Nasdaq's minimum bid requirement. Faraday has sent a request to Nasdaq to extend its deadline to achieve this measure to Aug. 30.
Faraday also has a proposal to increase its authorized shares. The company noted that it has sought “equity-based or equity-linked strategic financing” in the Middle East and other places. However, it doesn't have enough authorized shares to receive this financing. The proposal seeks to increase authorized common stock to 4.16 billion shares from 463.31 million shares, marking a significant increase of 800%. That isn't a good signal for shareholders, as more shares outstanding as a result of an increase in authorized shares means dilution.
Poor fundamental
Faraday Future is a money-losing operation that didn't provide any forward vehicle-production guidance. Also, Faraday Future received warnings from the Nasdaq exchange for being very late in filing its required quarterly financial report, and for violating minimum share-price requirements.
There are just too many problems associated with Faraday Future to have any real confidence in the company's future. Faraday Future stock could actually go to zero at some point, definitely a bearish vote for $Faraday Future Intelligent Electric Inc.(FFIE)$
Learn from the history
FFIE daily chart
History keeps on repeating. The crazy surge in mid May triggered the entry of many retailers but most of them end up losing most of their investment within a1 week. Now, it seems to be another round of similar trap again. Don't be FOMO and fall into the trap again and again, wake up $Faraday Future Intelligent Electric Inc.(FFIE)$
How do you think? Come and join the discussion guys.
@TigerStars @MillionaireTiger @CaptainTiger @Tiger_comments @Daily_Discussion @TigerGPT
Modify on 2024-06-27 21:11
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Based on the news articles available, there is a mix of viewpoints regarding Faraday Future's future. Here are some key points:
Faraday Future's stock has experienced significant volatility, with surges and drops in price. It is important to note that past performance is not indicative of future results.
Faraday Future recently unveiled a plan to regain compliance with Nasdaq's minimum bid price requirement through a reverse stock split. The specific ratio for the reverse split has not been determined yet.
The company has requested an extension from Nasdaq to achieve compliance with the minimum bid requirement by August 30.
Faraday Future is also proposing an increase in authorized shares to facilitate potential strategic financing opportunities.
The company has faced challenges, including late filing of required financial reports and violations of minimum share-price requirements.
Some articles express concerns about Faraday Future's poor fundamentals, lack of forward vehicle-production guidance, and the potential for share dilution due to an increase in authorized shares.
It is important to consider the risks associated with investing in Faraday Future, as there are uncertainties surrounding the company's financial performance and compliance with Nasdaq requirements.
Given the mixed viewpoints and the uncertainties surrounding Faraday Future, it is crucial to conduct thorough research and carefully evaluate the risks before making any investment decisions.
Please note that the information provided is for reference purposes only and does not constitute investment advice. Investing in stocks involves risks, and it is recommended to consult with a financial advisor or professional before making any investment decisions.
I apologize for the lack of specific news articles related to Faraday Future. You may consider visiting the stock quote page or conducting further research to gather more relevant information about the company.