Troubled electric vehicle company Faraday Future (NASDAQ:FFIE) scheduled a “global business investor update” for Dec. 15. And FFIE stock is rising on the news.
Shares jumped almost 12% on the news and another 17% over the weekend. But that still puts its market capitalization at just $154 million. The company has lost 98% of its value since coming public through a Special Purpose Acquisition Company (SPAC) in mid-2021.
Faraday Future stock opened on Dec. 12 at about 34 cents/share. When it came public, it traded for nearly $15.
Big Faraday Hat, No Faraday Cattle
Faraday Future’s story is one of unfulfilled promises. The company calls its FF91 design “a new species” of electric vehicle, with a 1,050 horsepower electric motor, 11 in-car displays, and zero gravity seats. But the car is not yet being produced.
Faraday was founded by Chinese immigrant Jia Yueting in 2014, with plans to launch its car in 2017. The Verge called Faraday “a house of cards” in 2017.
Jia eventually left Faraday and filed for personal bankruptcy in the U.S. in 2019. For a time, Faraday had financing from a unit of Chinese property developer Evergrande (OTCMKTS:EGRNF).
At the time of its IPO, Faraday claimed strategic partnerships with Chinese automaker Geely Automotive (OTCMKTS:GELYF), which owns Volvo, as well as Taiwanese manufacturer Foxconn Technology (OTCMKTS:HNHPF), best known for building the iPhone.
Last month Faraday said it had $350 million in financing from Yorkville Advisors to launch production of the FF91. Yorkville does not yet list Faraday on its investments page but admits in a disclaimer that the page doesn’t list all its investments.
Two weeks after the Yorkville agreement, Faraday fired CEO Carsten Breitfeld, who led its IPO, replacing him with Xuefeng Chen, also known as “Chris.” The hope is that Chen, who has experience with several Chinese car operations, can finally get the FF91 into production.
FFIE Stock: What Happens Next?
Faraday will have a lot of questions to answer at its investment summit. If investors like the answers the stock could still rise. But I’m not betting on Faraday’s future.
On the date of publication, Dana Blankenhorn held no positions in any companies mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.