Why Is Faraday Future (FFIE) Stock Down 27% Today?


  • Faraday Future (FFIE) stock is down on Tuesday on plans for a reverse stock split.
  • The company is doing so to boost its share price.
  • This is part of a larger plan to regain listing compliance.
FFIE Stock - Why Is Faraday Future (FFIE) Stock Down 27% Today?

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Faraday Future (NASDAQ:FFIE) stock is falling hard on Tuesday after the electric vehicle (EV) company announced plans to regain compliance with Nasdaq listing rules.

The biggest blow to FFIE stock comes from the EV company’s plans for a reverse stock split. Faraday Future intends to enact a reverse stock split to boost the price of its shares above the $1 minimum bid price required to remain on the Nasdaq.

Faraday hasn’t nailed down the exact details of the reverse stock split just yet. However, we know the company is aiming for the ratio to range between 1-for-2 and 1-for-40.

It’s likely that Faraday Future will aim for a higher ratio with its reverse stock split. The company notes this would “provide a margin of safety for the stock price over the longer term.”

What’s Next for FFIE Stock?

Faraday Future still has other matters to attend to before it can regain listing compliance. The company is also late on its first-quarter 10-Q filing but plans to have it submitted by the end of July.

After this, Faraday Future will still need approval from shareholders for its reverse stock split. It will seek this approval during its upcoming annual shareholder meeting.

FFIE stock is down 26.7% as of Tuesday morning. This comes with more than 21 million shares traded. That’s still well below its daily average trading volume of about 134 million shares.

Investors will want to stick around for more of the most recent stock market stories!

We have all of the hottest stock market news available on Tuesday! A few examples include what’s going on with shares of Senti Biosciences (NASDAQ:SNTI) and Volcon (NASDAQ:VLCN) stock, as well as the biggest pre-market stock movers this morning. All of that info is ready to go at the links below!

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On the date of publication, William White 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.

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