Who the Heck Is Faraday Future and Why Is It Up 1,200% Since Tuesday?
Get a load of this one everybody. Reminds me of a certain Iron Maiden song...
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Ever heard of Faraday Future Intelligent Electric FFIE? Me neither. Well, maybe I heard of this company, but had long since forgotten about them.
Faraday Future is a nano-cap, no make that a micro-cap (Yes, the stock has been upgraded to a micro-cap) Nasdaq-listed electric vehicle name headquartered in New York City. The company has not reported results since 2023, and the last quarter that it reported (Q3 of that year) it posted revenue of $551K, a gross loss of $15.58M, an operating loss of $66.447M and a net loss of $78.046M. A GAAP loss per share printed at $3.78, but that narrowed from a loss of $23.67 per share a year earlier. Not kidding.
For the first nine months of 2023, which is all we have, Faraday Future generated operating cash flow of -$240.37M. Tack on $10.846M in capex spending and you are left with free cash flow of -$251.216M. Nice.
The company ended that quarter with a cash position of $8.567M (including restricted cash), $35.215M in inventories, and current assets of $127.301M, Current liabilities printed at $191.153M, leaving Faraday Future with an awful current ratio of 0.66 and an even worse quick ratio of 0.49.
Who the Heck Are These Guys?
According to a description of the company that I found, Faraday Future Intelligence Electric designs and engineers intelligent, connected, electric vehicles. Primary among its products, is the Variable Platform Architecture or VPA.
The VPA is a modular "skateboard-like" platform, that can be sized to accommodate various motor and powertrain configurations. This enables product development for both the passenger and commercial vehicle business subsets.
The company also has an advanced technology system that offers computing, high-speed internet service and "over the air" updating capabilities. This allows for an open ecosystem for third-party application integration.
Why Am I Telling You All This?
Trust nothing you see in these low-priced stocks right now.
At last glance FFIE is trading at $3.80, up some 113% for the day. The stock closed at $1.65 on Thursday, at $0.71 on Wednesday, and $0.29 on Tuesday. That's up 1,200% since Tuesday's close.
Is there news out? No. This is part of the meme-stock craziness. Supposedly, as of three weeks ago, 85% of this company's entire float is short.
Take a Look at the Chart
That's right, this was once a high-flier. Let's zoom in:
Reminds me of an Iron Maiden song...
Run to the Hills
Run to the hills
Run for your lives
Run to the hills
Run for your lives
- Stephen Percy Harris
Please note that due to factors including low market capitalization and/or insufficient public float, we consider FFIE to be a micro-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.
At the time of publication, Guilfoyle had no positions in any sceurities mentioned.
