Faraday Future Intelligent Electric Inc. (FFIE) saw its stock decline by 5.96% to close at $1.42 on November 25, 2024. The stock opened at $1.54 and reached a high of $1.70 before dropping to a low of $1.39, indicating significant volatility throughout the trading day. The trading volume was 9,320,547 shares, surpassing the average volume of 8,328,718 shares, suggesting heightened investor activity.
The decline comes despite the company's announcement of securing 100 sets of Fuji vehicle body parts to support the production of the FF 91 2.0 model. While this development initially boosted the stock to $1.57, skepticism about the company's financial health and production capabilities quickly overshadowed the positive news. On Reddit, users expressed doubts about Faraday Future's ability to execute its ambitious plans with limited cash reserves, estimated at around $8 million. One user remarked, "Still trying to produce a car they can't sell," highlighting concerns about the company's viability.
Further fueling the bearish sentiment, discussions on social media pointed to the potential need for significant capital infusion or share dilution to fund ongoing projects. A Reddit post noted, "They only have the ability to raise about $30M before they run out of shares," underscoring the financial constraints facing the company. The mixed sentiment among retail investors, with some holding onto hope for future success while others remain skeptical, contributed to the stock's downward pressure.