On Wall Street, there are stock rallies, and then there are meme stock rallies. One such name that has promptly jumped into the spotlight this week is electric vehicle maker Faraday Future Intelligent Electric (NASDAQ:FFIE). The stock has surged by over 5,700% in the past week amid a renewed meme stock mania, which has also boosted the fortunes of other retail investor favorites such as GameStop (NYSE:GME) and AMC (NYSE:AMC) in recent days.
The Ground Reality
On the ground, the news flow from FFIE has actually been less than positive in recent days. Yesterday, the company disclosed in an exchange filing that its quarterly report for the quarter ended March 31 will be submitted late. The company noted that the delay is due to its accounting team taking extra time to file its annual report for the year ended December 31, 2023.
In another development earlier this month, FFIE denied the possibility of its former CEO YT Jia returning to the company as Co-CEO. A social media video in China had indicated that Jia was considering a possible return to FFIE. However, FFIE clarified that its board was not considering his offer of service.
Adding to the mix is a stock delisting notification from NASDAQ, indicating that the stakes are high (and uncertain) in this FFIE rally. At last check, FFIE planned on requesting an extended stay of the suspension and a possible reverse stock split.
FFIE’s Short Squeeze
Simultaneously, FFIE is one of the most shorted stocks on Wall Street and this factor is enough for a short squeeze of epic proportions. According to FinViz, short interest in FFIE stood at nearly 97% of its float at last check.
Is FFIE a Meme Stock?
Despite these price gains, FFIE still remains nearly 97% lower over the past year. On the flip side, the trading volume in this meme stock is now well over a billion shares. Not surprisingly, FFIE stock is not on analysts’ radars at present.
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