Trading for literal pennies as recently as May 13, Faraday Future (NASDAQ:FFIE) has experienced quite the rebound in recent weeks. During this time, Faraday Future stock has zoomed from 6 cents per share, to at one point prices nearing $4 per share.

This speculative EV play has since fallen back to sub-$1 per share prices, yet remains up tenfold from prior price levels. Admittedly, much of this rally was driven not by news regarding the company, but from the recent series of “meme waves” that have hit the market.

That said, a continued comeback for FFIE, based more on fundamentals than on market trends, may be within the realm of possibility. At least, that’s our take-away, upon taking another close look at the company and its shares.

Faraday Future Stock: Surging and Sinking as ‘Meme Mania’ Lives On

As you likely recall, back in mid-May, meme stocks experienced a short-lived resurgence in popularity. This was because of the supposed return of famed meme stock investor Keith “Roaring Kitty” Gill to social media. It wasn’t just high-profile meme stocks that benefited from this wave.

In fact, the surge in price for Faraday Future stock far exceeded the rallies experienced by more popular meme stocks.

While not as strong as the first wave, the recent second “Roaring Kitty” meme stock had some positive impact on FFIE’s price performance. Shares rallied by as much as 28% on June 3.

On that same day, further social media posting by Gill sparked another, albeit smaller, wave of speculative frenzy about meme stocks.

While anything’s possible, we wouldn’t bank on further “Roaring Kitty” rallies to serve as a catalyst for Faraday Future shares. On the other hand, a spate of positive company-specific news could be just around the corner.

Prior Faraday headlines suggest a grim outlook, but it could be a classic case of “it’s always darkest before the dawn.”

It’s a Long Shot, but a Relief Rally is Possible

The phrase “down but not out” fully applies to the situation at hand with Faraday Future stock. Yes, for 2023, the company reported another year of high losses and minimal revenue. The company still hasn’t released Q1 2024 results.

As InvestorPlace’s Josh Enomoto discussed late last month, Faraday has even issued a “going concern warning,” disclosing the pressing need for additional outside funding to avoid a bankruptcy filing.

Add in the fact that FFIE is facing a possible delisting from the Nasdaq exchange, and we agree that at first it’s hard to see why one should even consider this stock right now.

Nevertheless, clearly a long-shot, a relief rally may be possible. As we have pointed out in prior coverage of Faraday, the company has been placing greater focus on the Middle Eastern EV market.

While this expansion is still in the early stages, it may just well help the company attract additional capital.

Although a capital infusion would be dilutive it could bring this stock back from the brink. Getting back into compliance with Nasdaq could do this as well.

All that’s required is for Faraday to release its Q1 2024 results, and to execute a reverse stock split.

The Verdict: Tread Carefully

If FFIE shares are going to rally again, chances are it will not be due to yet another round of meme stock mania. Instead, positive surprises like a capital infusion, or a reverse split that secures the Nasdaq listing, will be what provides the next major lift for the stock.

This isn’t a play for the risk-averse. However, if you can stomach the high volatility, and are fully aware of the complete situation with this small, fledgling electric vehicle upstart, there may just well be enough in play to justify making it a buy.

That said, tread carefully with Faraday Future stock. While it’s possible subsequent developments save the day, a “game over” moment also remains very possible.

Faraday Future stock earns a B rating in Portfolio Grader.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.