Are you willing to give an ambitious electric vehicle startup a chance? Can you tolerate risk, volatility and drama? If so, then you might consider investing in Faraday Future Intelligent Electric (NASDAQ:FFIE). While there’s no guarantee of safety with Faraday Future stock, we’re giving it a “B” grade and it may be right for a small share position.
As we’ll discuss in a moment, Faraday Future has a dynamic with the Nasdaq exchange that’s “interesting,” to put it mildly. Also, Faraday Future might soon surprise the EV industry with an announcement of global proportions. So, let’s strap in for an unforgettable ride with always-fascinating Faraday Future.
Faraday Future’s Potential Delisting Drama Continues
There’s no denying it. Faraday Future hasn’t always been very timely with its expected filings to the Securities and Exchange Commission. Moreover, Faraday Future has run afoul of the Nasdaq exchange’s $1 minimum bid price requirement.
We’re not saying that Faraday Future purposely flouts the Nasdaq’s continued-listing rules. It’s still a cause for concern, though, since Faraday Future’s investors probably don’t want the company to get booted from the Nasdaq exchange.
In a recent turn of event, Nasdaq granted Faraday Future’s request for continued listing, but it’s a conditional approval. Faraday Future needs to company “with the periodic reporting requirement by July 31 and the minimum bid price requirement by August 31, 2024.”
Hopefully, Faraday Future will soon file its first-quarter and second-quarter 2024 Form 10-Qs. Also, don’t be surprised if Faraday Future effects a reverse stock split soon, in order to comply with the bid-price requirement. So, stay tuned for further developments on those crucial topics.
Faraday Future as an Ambassador?
Commentators have taken a number of different angles with Faraday Future this year. For example, some people might be bearish because Faraday Future withdrew its vehicle-production outlook. Meanwhile, other folks might focus on Faraday Future stock’s volatility and its potential to be a fast-moving meme stock.
It’s fine to be aware of those angles. Yet, investors shouldn’t overlook Faraday Future “dual-home-market strategy.” More specifically, Faraday Future is apparently preparing to unleash its “US-China Automotive Industry Bridge Strategy.”
Will this be a game changer or a nothing burger? It’s hard to know at this point, since the details are scant.
Faraday Future claims to have engaged in “preliminary discussions with several global” original equipment manufacturers and suppliers. Apparently, these discussions included revolved around how Faraday Future can “help build a bridge between U.S. and Chinese automotive industries through industrial coordination and collaboration.”
Could Faraday Future become a de facto U.S. ambassador to China’s automotive industry? Anything’s possible in these unpredictable times.
The company said in late May that it “will share the details of the ‘US-China Automotive Industry Bridge Strategy’ in the next month or two.” Thus, Faraday Future could rock the global EV market with an announcement any day now.
Faraday Future Stock: Never a Dull Moment
Again, we emphasize that there’s no assurance of safety for Faraday Future’s investors. Faraday Future could be a flop or go straight to the top. Can you handle the risk and the share-price volatility?
If so, then you might choose to purchase a few Faraday Future shares. This is the type of investment that you can have fun with if you adhere to sensible position-sizing guidelines. With all of that in mind, Faraday Future stock gets a “B” grade and we intend to keep an eye on this noteworthy 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) and positions in the securities mentioned in this article.