Faraday Future’s Retail Buzz Surges As EV Stock Jumps on $30M Financing Commitment
By Stocktwits Inc | First Published Dec 23, 2024, 8:52 PM ISTTwo prototype mules of the Faraday X are expected in Los Angeles this month for testing at the company’s Hanford, California facility.
Faraday Future Intelligent Electric (FFIE) shares rose nearly 7% at Monday’s open, spurred by the EV maker’s announcement of $30 million in financing commitments.
On Sunday, the company disclosed that $7.5 million had been pre-funded in the fourth quarter, with an additional $22.5 million in cash commitments via unsecured convertible notes and warrants.
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The funds will support the development of Faraday X, a more affordable EV line, and ongoing corporate needs, the company said.
CEO Matthias Aydt said, “I am optimistic about the opportunities that this new funding will bring, including supporting the ongoing production of our FF 91 2.0 and the growth of the FX brand.”
Two prototype mules of the Faraday X are expected in Los Angeles this month for testing at the company’s Hanford, California, facility.
Retail chatter surged on Stocktwits following the news, with message volume spiking from ‘low’ to ‘high’ levels.
Sentiment remained in the ‘neutral’ zone but showed some improvement, driven by optimism about the potential impact of the new funding.
Despite the rally, Faraday Future’s financial struggles loom large.
The company reported just $7.3 million in cash at the end of the last quarter, against long-term debt exceeding $30 million, as per Koyfin data.
Deliveries of its ultraluxury FF91 EVs have been minimal, and no major analysts currently cover the stock, according to Bloomberg.
Faraday Future has been labeled a “classic” meme stock by some, after the stock surged notably earlier this year with Keith Gill’s (Roaring Kitty) return to social media.
The stock’s retail following on Stocktwits has surged 120% over the past year, but weak fundamentals have led to a 96% year-to-date decline.
Short interest in FFIE remains high at 16.3%, suggesting skepticism about its ability to sustain momentum.
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