Why Faraday Future Stock Dropped 10% Today
Faraday Future Intelligent Electric (NASDAQ: FFIE) has finally started delivering its unique electric vehicles (EVs). Investors seem to think it might be a little too late, though. After losing much of its value last year, Faraday stock has continued to plunge going into 2024.
After dropping as much as another 15% today, the stock was still down 10.1% as of 12:50 p.m. ET. That came after the company announced some fresh delivery news for its high-powered FF 91 electric car.
Finally, fast off the line
The FF 91 has some impressive features. It can go from 0 to 60 mph in under 2.3 seconds. It also claims an EPA range of 381 miles on a single battery charge. Yesterday, the company announced it delivered its first 10 FF 91 2.0 Futurist Alliance EVs in 2023. The latest of the over-$300,000 EVs went to Jim Gao, a Faraday executive overseeing the company's technology platform.
The unique EV has a top speed of 155 mph, but the company itself hasn't been that fast to get its product to market.
Better EV opportunities
After struggling to launch its EV offering, Faraday Future has just $8.6 million in cash and restricted cash as of Sept. 30, 2023. In the first nine months of 2023, the company needed more than $240 million for operating activities.
It's a good sign that the company is now generating revenue. But the fact that it issued a press release yesterday to announce it has sold 10 vehicles, including one to a company executive, is a sign that there are better speculative EV opportunities for investors.
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Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
