Meme stock mania is back in full swing, and electric vehicle maker Faraday Future Intelligent Electric (NASDAQ:FFIE) has been on traders’ radars in recent weeks. The stock had soared by as much as 5,700% in just one week earlier this month. However, today FFIE stock has plunged by over 20% after the company reported full-year 2023 results and withdrew its production outlook.
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FFIE’s Dismal Performance
FY2023 turned out to be FFIE’s first year of revenue generation after it started vehicle deliveries in Q3. The company also managed to lower its operating loss and cash used in operating activities during this period. Its revenue for the year stood at roughly $800,000.
Its operating loss narrowed to $286 million from a loss of $437 million in the prior year due to lower research and development expenses. Concurrently, FFIE’s capital expenditures declined to $31 million from $123 million in 2022.
Faraday Future’s Withdrawn Outlook
While FFIE is aiming for growth, the company withdrew its production outlook for 2024, citing market conditions and its current levels of funding. Furthermore, FFIE is scouting for strategic investors to support its growth. Last year, FFIE had projected total vehicle production for 2024 at 1,000 units.
Potential Delisting
Separately, FFIE received a non-compliance letter from NASDAQ this week for failing to file its quarterly report for the quarter ended March 31 in a timely manner. This warning could be another factor contributing to the potential delisting of FFIE stock from NASDAQ.
Is FFIE Stock a Good Buy?
FFIE’s share price has corrected from nearly $3.86 on May 17 to $0.97 today. During this period, short interest in the stock has cooled down to around 32% from 97%, according to FinViz. This substantially lowers the possibility of another short squeeze in the stock at present. Meanwhile, the daily trading volume in this meme stock still remains elevated at around 101.31 million. However, FFIE is not on analysts’ radars at present.
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