Faraday Future Intelligent Electric Inc. (FFIE) experienced a relatively stable trading day, closing at $1.40, a slight decrease of 2.10% from the previous close of $1.43. The stock opened at $1.46, reached a high of $1.55, and a low of $1.38, with a trading volume of 8,356,959 shares, which is 54.59% of its average volume. Despite the minor decline, after-hours trading saw a 2.14% increase, bringing the price back to $1.43.
Throughout the day, FFIE's stock was influenced by several factors. The announcement that entrepreneur Luke Hans took delivery of the new FF 91 2.0 Futurist Alliance vehicle generated positive sentiment, as it underscored the company's progress in delivering its flagship model. This news was well-received in investor circles, potentially boosting confidence in FFIE's production capabilities.
On social media, discussions highlighted the stock's high short interest, reportedly exceeding 40%, and the presence of substantial fail-to-deliver (FTD) positions due for settlement. One Reddit user noted, "Over 4 Million of today's volume was short-only volume, reflecting the illiquidity of FFIE at this interesting time." This situation has sparked interest in a potential short squeeze, with some investors viewing the FTDs as a "juicy sign" for upward pressure.
However, the stability in FFIE's stock price was overshadowed by a lawsuit filed by former employees, alleging violations of federal and state laws, including issues with NHTSA reporting and misreporting vehicle sales figures. This legal development may have tempered investor enthusiasm, contributing to the stock's unchanged position by the end of the trading day.