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FFIE share - Dear FFIE share fans, mark June 12th in your calendar

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After a volatile month with some big fluctuations, Faraday Future Intelligent Electric (NASDAQ:FFI) finally has a positive catalyst in sight. The electric vehicle (EV) maker has announced that it will resume deliveries on June 12 after suspending them four months ago.

More specifically, the company plans to deliver the first edition of its second generation FF 91 to a private investor, EVFFIE’s share price is rising today on this news after weeks of declines following the short squeeze in May.

What happens to FFIE shares?

For weeks, FFIE stock has been taking investors on a wild ride. As the Roaring Kitty rally boosted many meme stocks last month, Faraday Future enjoyed more momentum than popular favorites like GameStop (NYSE:GME) And AMC Entertainment (NYSE:AMC). But like all flashes in the pan, this one was short-lived. Short interest in Faraday has since declined significantly.

The company has not given investors much cause for optimism as FFIE stock continues to erode its gains. However, yesterday, after the market closed, Faraday published the following post on X:

That news was enough to give shares a slight boost today, although FFIE stock ultimately closed down 0.08% on Tuesday. However, a delivery doesn’t mean Faraday has a long list of customers waiting to snap up vehicles. InvestorPlace Employee Viktor Zarev reports:

“A closer look at FFIE’s original business model makes you wonder who they were originally trying to sell to. The market for ultra-luxury electric cars isn’t big enough to be profitable. Even more worrying is that FFIE continues to lose money with no end in sight as it uses buzzwords like ‘generative AI’ to keep hopeful shareholders on board.”

Faraday’s colleagues know this to be true. Another producer of high-end luxury electric vehicles Clear (NASDAQ:LCID) has been struggling for months and has not been able to break even close to the $5 mark. But the money loss that Zarev foresees with Faraday should worry investors more. If this money loss does not stop, Faraday will go the way of the struggling automaker Fisherman (OTCQB: FSRN), just as some have predicted.

Along the road

At this point, investors should be cautious and not get too excited about Faraday’s delivery news. Yes, it’s a good thing that the company is starting to deliver vehicles again. But FFIE stock still seems very unstable and faces too many obstacles to be considered a safe investment in the electric vehicle market.

Share prices are likely to rise tomorrow on retail speculation, but unless Faraday can prove there is widespread demand for its high-quality electric vehicles, any growth will likely be quickly wiped out.

On penny stocks and low-volume stocks:With very few exceptions, InvestorPlace does not publish commentary on companies that have a market capitalization of less than $100 million or that trade fewer than 100,000 shares per day. That’s because these “penny stocks” are often a playground for fraudsters and market manipulators. If we ever publish a commentary on a low-volume stock that may be affected by our commentary, we require that InvestorPlace.com writers disclose that fact and warn readers of the risks.

Read more:Penny Stocks – How to Make Profits Without Being Scammed

At the time of publication, Samuel O’Brient 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 author and are subject to InvestorPlace.com’s disclosure policies.

Samuel O’Brient is a reporter for InvestorPlace, where he focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on breaking political news that investors should follow.

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