Faraday Future Intelligent Electric Inc. (FFIE) experienced a decline in its stock price today, closing at $1.11, down 4.31% from the previous close of $1.16. The stock opened at $1.28 and reached a high of $1.35 before dropping to a low of $1.09. The trading volume was significantly higher than average, at 21,794,126 shares, indicating heightened investor activity.
The day's price movement was influenced by the company's announcement of securing $30 million in financing, aimed at supporting the development of its Faraday X (FX) strategy and the production of the FF 91 2.0 model. Despite the initial positive reaction, with the stock rising nearly 7% at the open, concerns about the company's financial health and high short interest, reported at 16.3%, likely contributed to the subsequent decline. The financing involves unsecured convertible notes and warrants, with conversion and exercise prices set at $1.16 and $1.392 per share, respectively.
Retail sentiment on platforms like Stocktwits showed increased activity, but remained neutral, reflecting mixed investor confidence. The company's financial struggles, including a low cash balance and significant debt, continue to weigh on investor sentiment.