FFIE Stock: Faraday Future Delays 10-Q Filing Amid Short Squeeze Rally


  • Faraday Future (FFIE) stock has surged in the last week amid a gigantic short squeeze rally.
  • The rise in FFIE stock began during a brief meme stock resurgence but has continued after the fact.
  • Faraday recently disclosed that it would not meet the deadline for filing its 10-Q form.
FFIE stock - FFIE Stock: Faraday Future Delays 10-Q Filing Amid Short Squeeze Rally

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Shares of electric vehicle (EV) startup Faraday Future (NASDAQ:FFIE) are continuing to soar on an unprecedented short squeeze rally. The huge surge of FFIE stock began during this week’s brief meme craze, but now it’s continuing even after the meme surge has faded.

Meanwhile, a U.S. Securities and Exchange Commission (SEC) filing from the EV maker showed that it will miss the deadline for filing its Form 10-Q.

Faraday Delays Filing Its Form 10-Q

Yesterday, Faraday disclosed that it would not be able to file its 10-Q with the SEC by the deadline. Filed quarterly, 10-Q forms include “unaudited financial statements” and are supposed to provide investors with “a continuing view of the company’s financial position during the year.” The SEC requires publicly traded companies to file these forms.

Faraday stated that it was unable to file the Form 10-Q on time because its annual report, or Form 10-K, had been delayed. However, the EV maker also indicated that it does not believe “results of operations” changed significantly in the first quarter compared to Q1 2023.

According to S&P Global, late filers are “typically companies with poor fundamental characteristics relative to peers; investors may want to consider avoiding or short-selling these firms.”

The Huge Rally of FFIE Stock

As of this writing, FFIE stock is changing hands at around $2.65 per share versus its high of $3 so far today. Last week, the shares traded as low as 4 cents per share. The gigantic upturn in FFIE, sparked by a short squeeze, does not appear to be based on any change in Faraday’s fundamentals.

In Q3 2023, the last period for which financial information about the firm is available, Faraday generated revenue of $600,000 and an operating loss of $66.5 million.

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On the date of publication, Larry Ramer did not hold (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.

Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.

Article printed from InvestorPlace Media, https://investorplace.com/2024/05/ffie-stock-faraday-future-delays-10-q-filing-amid-short-squeeze-rally/.

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