What a day it’s been for investors in Faraday Future (NASDAQ:FFIE). Shares of FFIE stock have fallen more than 25% at the time of writing. However, this stock is actually well off its lows, which was an incredible decline of 43% intraday.

Much of this move appears to be tied to internal disputes between the company’s board and investors. Essentially, one of the company’s largest shareholders, FF Top, has requested the removal of the company’s chairman of the board. In a 13-D filing, this particular investor noted its belief that Faraday isn’t “treating FF Top’s proposal with the gravity, urgency, and fairness it deserves.” As such, uncertainty remains over whether the company will act on this request or not.

As it happens, Faraday has also become a short-squeeze candidate of late. Short interest has surged in the EV sector, leading retail investors to jump aboard this trade. However, given the internal squabbling, FFIE stock has given up all its gains for the month as of today’s lows. That’s a rather impressive move, considering how high this stock rose in just a few week’s time.

So, can Faraday Future regain its previous status as a short squeeze and meme stock favorite? Let’s dive in.

FFIE Stock Sinks on Internal Strife

Any time a company is battling itself (and there are several notable examples of this right now), investors tend to stay away. Whether it’s the Elon Musk/Twitter debacle or a range of other board fights and proxy battles, there’s money to be made in trading these names. That said, given the trajectory of the overall market, it’s clear investors don’t seem to want to participate in this one.

Much of that can be attributed to just how quickly this stock ascended on the back of strong retail investor interest. With few fundamental drivers, Faraday appears to be a stock that’s too volatile for many traders to touch. That’s not good for those piling into this stock on these lows.

However, given the previous momentum with Faraday, an argument can be crafted that perhaps a short-term bounce is in order. Honestly, I have no idea which direction this stock will trade from here. For now, the market appears to be taking the view I would — that it’s probably best to watch the action from the sidelines.

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On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.