FFIE Stock: Riding High on the Electric Vehicles Bandwagon

• EV market share in the US is now 5.8%, which is a 3.2% positive from 2021.
• FFIE’s next earning date is estimated to be May 12, 2023.
• As of January 15, 2023, there was a 14.2% decrease in short interest versus December 31, 2022.

Faraday Futures Intelligent Electric (FFIE) was incorporated in 2014 with headquarters in Gardena, California. The company engages in the design, development, manufacturing, engineering, sale, and distribution of electric vehicles and related products internationally and in the United States. 

EVs are selling like hotcakes; sales in the United States jumped significantly in 2022, with newer high-range models and higher interest helping sales touch the high mark of over 800,000 units for the first time since their inception. It’s a 65% increase compared to 2021. Also, the EV market share is now 5.8%, a 3.2% increase from 2021. 

At the time of writing, it was trading at $1.08 with a jump of 9.09%, the previous close was at $0.9901, and the open was at $1.01. The fifty-two-week range was from $0.2450 to $7.8500, meaning the current rate is closer to the lower end of the spectrum. Market cap is strong at $486.28 million with 37.86 million shares, on a 90.87% average. 

FFIE released its quarterly earnings results on November 21, 2022. Giving a $0.27 EPS for the quarter. It generated $0.00 in earnings per share over the last year. The estimated earnings date is May 12, 2023. At the same time, the recorded net income was negative $516.51 million. 

There was a considerable decrease in short interest in January 2023. As of January 15, 2023, the short interest for a total of 71,620,000 shares found a decrease of 14.2% as compared to December 31, 2022, of 83,40,000 shares total. When the average daily volume of 37,400,000 shares is studied, the day-to-day coverage ratio is around 1.9 days, with nearly 17.9% of shares of the stock being short-sold. 

Many hedge funds target the EV industry to get a piece of the pie. In Q2, Principal Financial Group Inc. recently bought a position worth nearly $27, and ProShare Advisor LLC also purchased nearly $29,000. In Q3, Tower Research Capital LLC TRC increased its position by 688.9%. Q4 saw Tower Research Capital LLC TRC buying 44,276 additional stocks. 

The chart clearly shows the breakout from the demand zone was with more than average volume. Indicating that the trend could keep going north; however, it would consolidate from the current point and R1 of $1.27 for some time before entering another consolidation state between the supply zone. The breakout of the supply zone could happen, but it would take some time and more positivity in the market. 

If the market is reversed, the demand zone stands strong to stop it from falling further down and could present decent buying opportunities. 

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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