To The Moon

🌟🌟🌟On a day when US stocks are in a holding pattern as investors await the latest inflation data on Friday, EV stocks are sizzling hot. The best performing EV stock is surprisingly $Faraday Future Intelligent Electric Inc.(FFIE)$ as it jumps a whopping 73% in just 1 day and another 12.9% after the market close. On Monday, Faraday Future is proposing a reverse stock split to be submitted to shareholders for approval at the upcoming annual meeting scheduled sometime in July. The reverse stock split proposal includes a proposed range between 1-for-2 and 1-for-40 shares of outstanding Common stock and a corresponding reduction in the total number of shares of Common stock that the company is authorised to issue. The final ratio will be determined by the Board of Directors after stock holder approval, with the option to abandon, delay or postpone the reverse stock split. Faraday Future's share price has fallen below Nasdaq's minimum bid price requirement of USD 1.00 per share for 30 consecutive days in December 2023. It also did not timely file its 2023 Annual Report on Form 10-K. This is Faraday's 3rd reverse stock split proposal. It had enacted a 1 for 3 reverse stock split in February this year and a 1 for 80 reverse stock split in August 2023. Since the warning letter from Nasdaq on delisting, Faraday has taken action to regain compliance which included filing its overdue 2023 Annual Report at the end of May and commited to filing its Q1 24 Earnings report no later than end July 2024. The latest stock split proposal is to provide a margin of safety with respect to Nasdaq's minimum listingrequirement of USD 1 per share. In the meantime Faraday has seek an extension from Nasdaq to extend its deadline to August 30. It is also seeking strategic financing including the Middle East. I believe a short squeeze could possibly be behind the phenomenal rise in Faraday Future today. This is a situation in which the price of a stock rises to such an extent that investors who have sold short, purchase the stock in order to limit their losses, thus causing the price to rise further. Faraday Future's status as a meme stock could also be driving the current rally. In May, Faraday Future rose by more than 4000% to USD 1.80 per share as retail investors were driven by the resurgence of Keith Gill aka Roaring Kitty after a 3 years' absence. This rally also follows the hot rally in Rivian's share price due to its announcement of a USD 5 billion investment by Volkswagen. Even $Tesla Motors(TSLA)$ rose 4.8% today and in the past 5 days, it has risen 6.3%. Tesla closed at USD 196.37 today, close to the USD 200 threshold. Tesla is due to announce its Q2 24 deliveries in early July. Chinese EV stocks also joined in the rally. $XPeng Inc.(XPEV)$ is up 3.7% today and has risen 11% in the part 5 days. XPeng has just released its latest sub brand series called Mona. The first model is XPeng M03. DiDi will support the Mona project with its mobility eco system and will pave the way for XPeng to build a mass market RMB 150,000 (USD 20,680) price segment EV. $NIO Inc.(NIO)$ share price is up 6.1% today too. Nio has begun presales of its sub brand Onvo K60 on May 15. The presale price is RMB 219,900 (USD 30,260) which is RMB 30,000 less than Tesla Model Y entry level. $Li Auto(LI)$ share is up 2% today and in the past 5 days it has risen 4.4%. Li Auto's current main sellers are the L Series extended range EV models Li L6,Li L7, Li L8 and Li L9. Li Auto has recently signed a partnership agreement with PetroChina Wanglian Electric Energy to work together to promote the construction of charging infrastructure along highways and within cities in China. There is no doubt that there is intense competition among EV companies. However there is a saying "A Rising Tide Lifts All Boats". EV companies need to continue with their technological innovation and keep their prices competitive in order to survive and thrive. Even though Tesla has the dominant position in EV market share currently, I believe that in the future, Chinese EV companies like BYD, Li Auto, Nio and XPeng will continue to grow exponentially in the future. As for Faraday Future, kudos must be given to its management for trying so hard to stay afloat. But it is going to be an uphill climb unless there is fresh injection of funds, hopefully from the Middle East. @Daily_Discussion @TigerStars @MillionaireTiger @Tiger_comments @CaptainTiger