Faraday Future Intelligent Electric (NASDAQ:FFIE), which is often shortened to Faraday Future, focuses on the luxury electric vehicle market. Faraday Future is not problem-free, but making progress in key areas. Faraday Future stock receives a “B” grade, suitable for risk-tolerant investors.
A major challenge in evaluating Faraday Future as a business is that the company is late in filing its Form 10-Q quarterly report for the first three months of 2024. We’ll use the available data, which might not be very recent. The data is sufficient to present Faraday Future as an interesting EV startup with growth potential.
Why Faraday Future Is Divisive
Opinions will certainly be divided when it comes to Faraday Future. That’s because, according to an announcement in April, the Nasdaq exchange “has determined to delist” Faraday Future stock.
The problem is that Faraday Future was out of compliance with the Nasdaq exchange’s listing requirements. That’s because the share price fell below $1 and even below 10 cents for a while.
The mid-May meme-stock revival helped to push the Faraday Future share price above 10 cents and then above $1. We hope you didn’t chase the stock above $1, though, since it pulled back to around 60 cents recently.
Faraday Future stock has meme-like qualities, so that makes it even more divisive among investors. You can now grab a few Faraday Future shares at a more favorable price (i.e., below $1) if you want to.
If the stock breaks above $1 and stays there for a while, then maybe Faraday Future will get out of the Nasdaq exchange’s penalty box (though we can’t guarantee this, of course).
It’s Not All Bad News for Faraday Future
Now, let’s focus on the positive aspects of Faraday Future. For one thing, the company generated some revenue in fiscal 2023. That’s progress, since Faraday Future was a pre-revenue company in fiscal 2022.
The critics shouldn’t be too hard on Faraday Future. After all, the automaker only started delivering vehicles in the third quarter of fiscal 2023. Thus, it’s not surprising that Faraday Future is currently unprofitable.
Besides, there are two pieces of positive news to report. First, Faraday Future slashed its operating expenses from $437 million in 2022 to $244 million in 2023. Moreover, Faraday Future’s loss from operations improved from $437 million in 2022 to $286 million in 2023.
Looking ahead, Faraday Future may be able to establish a strong EV-market presence in the Middle East. So, investors should be on the lookout for further developments as Faraday Future builds out its business.
Notably, the automaker seeks to establish a market footprint in China and the U.S. as well as the Middle East.
Faraday Future Stock Has Zero-or-Hero Potential
EV startup Faraday Future has meme-like qualities and recently got swept up in the meme-stock trend. Hopefully, you didn’t go chasing the stock above $1. Today, if you don’t mind making a risky investment, you can grab a few Faraday Future shares at a relatively reduced price.
Since Faraday Future has zero-or-hero potential, it’s not wise to over-invest in the company. Faraday Future stock earns “B” grade, and it may be appropriate for a small share position. So, feel free to conduct your due diligence on this undeniably interesting EV startup.
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.
