Faraday Future Intelligent Electric Inc. (FFIE) saw its stock plummet by 25% today, closing at $1.56, down from the previous close of $2.08. The stock opened at $1.92 and briefly reached a high of $1.98 before descending to a low of $1.54. The trading volume was notably high, at 17,624,737 shares, surpassing the average volume by 18.82%.
The sharp decline in FFIE's stock price is largely attributed to investor skepticism surrounding the company's recent strategic shift. On January 9, 2025, Faraday Future announced a pivot towards producing more affordable electric vehicles under its new FX brand, including a sub-$30,000 electric minivan. This move marks a significant departure from its previous focus on luxury EVs, raising concerns about the company's ability to execute this new strategy given its history of financial and managerial challenges.
Social media sentiment reflects a divided investor base. While some Reddit users express optimism, with comments like "Yt Jia is brilliant, tenacious and determined. This is going to the moon!", others are more critical, labeling the stock as an "Excellent bagholding opportunity lol." This mixed sentiment underscores the uncertainty surrounding the company's future prospects.
Further compounding investor concerns, Faraday Future's ambitious plans were showcased at CES 2025, where the company detailed its new FX sub-brand strategy. Despite unveiling prototypes of the FX 6 and Super One models, the company's past struggles with production delays and financial instability continue to weigh heavily on investor confidence.