Why is Faraday Future (FFIE) Stock a Sell? It’s All About This_老虎社区_美港股上老虎

Why is Faraday Future (FFIE) Stock a Sell? It’s All About This

InvestorPlace06-05

Shares of EV manufacturer Faraday Future Intelligent Electric (FFIE) were on a fire sale over the past week.Without getting into complicated analytics, the case against FFIE is all about pricing....

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美股733881
·06-04
听说法拉第汽车要退市，不知是不是真的？
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Schneider / Shutterstock.comTo be blunt, no shortage of arguments exist against acquiring shares of electric vehicle manufacturer Faraday Future Intelligent Electric (NASDAQ:FFIE). For starters, the 60-month beta on FFIE stands at 1.63, indicating severe volatility relative to the broader equities index. Second, Faraday Future stock was only priced at around 4 cents a share before skyrocketing. Even so, it’s still down 99% over the past 52 weeks.Then there are the financial woes. In a Form 10-K disclosure, the company issued a going concern risk. Further, management may move to seek bankruptcy protection unless it’s able to secure new funding. Another major eyesore for the EV maker is that it failed to timely file its Form 10-Q for the first quarter of this year. That only adds to the delisting risks tied to Faraday Future stock.We can pour through all the analytics tied to FFIE and its present troubles. However, I believe that the company was already troubled from the beginning due to its absurdly high pricing. With that, everything has fallen due to the domino effect. Therefore, I am bearish on Faraday Future stock.Faraday Future Stock Had No ChanceAccording to Car and Driver, Faraday’s FF91 2.0 Futurist Alliance requires a $5,000 deposit against the asking price of a whopping $309,000. By the way, that does not include a destination charge. You have to pay extra for that. That’s really all I needed to know about Faraday Future stock.Okay, that’s not entirely fair. As the automotive journal pointed out, you can acquire the “base” model Futurist for $249,000. That only requires a $1,500 deposit. And apparently, the FF 91 2.0 will be a bit cheaper, carrying a deposit requirement of only $1,000.I understand the basic assumption. With EVs still priced significantly more than their combustion-powered equivalents, the sector may not be ready for prime time. Rather than wait for the middle-income crowd to boost their earnings, it may be better to target wealthier consumers.I believed such a business approach made perfect sense for premium EV manufacturer Lucid (NASDAQ:LCID). Of course, the difference here is that the base model Lucid Air starts at $69,900. Or you can lease this luxurious platform for $649 per month. These are also elevated prices to be sure. But they’re within a range of reasonability based on the broader post-pandemic paradigm.On the other hand, FFIE is occupying another dimension, an alternate universe where the median income is $566,064. How did I get that number?Generally, you shouldn’t spend more than 10% of your net monthly income on a car payment. Using a loan calculator, a “cheap” Faraday with a $5,000 down payment requires a monthly bill of $4,717.20 based on a 60-month term at 6% interest.You can play with the numbers but the bottom line is that someone needs to be making half-a-million per year to afford a Faraday.What is the Addressable Market?Critically, the sky-high pricing of the EVs raises the next logical concern: what is the addressable market undergirding Faraday Future stock? I’m not sure anyone has a great answer to this question.Let’s go back to Lucid. Its addressable market centers on EV buyers focused on higher-end offerings by Tesla (NASDAQ:TSLA). Currently, the most expensive model from the House of Musk is the Model X Plaid, starting at just under $120,000. Lucid aims to steal market share away from Tesla and its pricing reflects this strategy.The thing is, even with a clear roadmap, I was wrong about Lucid. LCID has unfortunately been a poor performer.With that context in mind, I’m not sure what to make of Faraday Future stock. The underlying company features EVs that are priced twice that of Tesla’s most expensive ride. At the same time, it’s a significant discount to Rolls-Royce (OTCMKTS:RYCEY) but here’s the problem: what is this market? For people who want something more exclusive than a Tesla but can’t afford a Rolls-Royce?If such a consumer demographic exists, I highly doubt that it’s large enough to sustain Faraday Future stock. Check that, we know that this market isn’t big enough to support FFIE. In Q4 2023, the company posted sales of only $800,000.A Note About the Short SqueezeOf course, we must give some respect to Faraday Future stock regarding its short-squeeze potential. Per Fintel, the short interest stands at 31.5% of its float. If shares start to rise again, exposed bearish traders could panic out of their positions, leading to dramatic upside pressure. I wouldn’t feel comfortable directly shorting FFIE.However, I’m not entirely opposed to the idea of buying long-term puts against it. As stated earlier, the company got off on the wrong foot with its model pricing. Bluntly speaking, the market that Faraday is attempting to carve out doesn’t exist and may never exist.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[{"id":313320051376352,"gmtCreate":1717509859862,"gmtModify":1717509963710,"author":{"id":"3584861188099318","authorId":"3584861188099318","authorIdStr":"3584861188099318","name":"美股733881","avatar":"https://static.laohu8.com/default-avatar.jpg","vip":1,"crmLevel":1,"crmLevelSwitch":0,"idStr":"3584861188099318"},"htmlText":"听说法拉第汽车要退市，不知是不是真的？","listText":"听说法拉第汽车要退市，不知是不是真的？","text":"听说法拉第汽车要退市，不知是不是真的？","images":[],"top":1,"highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":0,"link":"https://laohu8.com/post/313320051376352","repostId":2440283657,"repostType":2,"repost":{"id":"2440283657","pubTimestamp":1717593221,"share":"https://www.laohu8.com/m/news/2440283657?lang=&edition=full","pubTime":"2024-06-05 21:13","market":"us","language":"en","title":"Why is Faraday Future (FFIE) Stock a Sell? It’s All About This","url":"https://stock-news.laohu8.com/highlight/detail?id=2440283657","media":"InvestorPlace","summary":"Shares of EV manufacturer Faraday Future Intelligent Electric were on a fire sale over the past week.Without getting into complicated analytics, the case against FFIE is all about pricing.Despite the short-squeeze speculation, Faraday Future stock should be avoided.To be blunt, no shortage of arguments exist against acquiring shares of electric vehicle manufacturer Faraday Future Intelligent Electric . For starters, the 60-month beta on FFIE stands at 1.63, indicating severe volatility relative to the broader equities index. Second, Faraday Future stock was only priced at around 4 cents a share before skyrocketing. Even so, it’s still down 99% over the past 52 weeks.Okay, that’s not entirely fair. As the automotive journal pointed out, you can acquire the “base” model Futurist for $249,000. That only requires a $1,500 deposit. And apparently, the FF 91 2.0 will be a bit cheaper, carrying a deposit requirement of only $1,000.Generally, you shouldn’t spend more than 10% of your net month","content":"<ul style=\"\"><li><p>Shares of EV manufacturer <strong><a href=\"https://laohu8.com/S/FFIE\">Faraday Future</a> Intelligent Electric</strong>&nbsp;(<strong>FFIE</strong>) were on a fire sale over the past week.</p></li><li><p>Without getting into complicated analytics, the case against FFIE is all about pricing.</p></li><li><p>Despite the short-squeeze speculation, Faraday Future stock should be avoided.</p></li></ul><p class=\"t-img-caption\"><img src=\"https://community-static.tradeup.com/news/11421508811412a7e7f4227717aa2040\" tg-width=\"768\" tg-height=\"432\"></p><p>Source: T. Schneider / Shutterstock.com</p><p>To be blunt, no shortage of arguments exist against acquiring shares of electric vehicle manufacturer <strong>Faraday Future</strong> <strong>Intelligent Electric</strong> (NASDAQ:<strong>FFIE</strong>). For starters, the 60-month beta on FFIE stands at 1.63, indicating severe volatility relative to the broader equities index. Second, Faraday Future stock was only priced at around 4 cents a share before skyrocketing. Even so, it’s still down 99% over the past 52 weeks.</p><p>Then there are the financial woes. In a Form 10-K disclosure, the company issued a going concern risk. Further, management may move to seek bankruptcy protection unless it’s able to secure new funding. Another major eyesore for the EV maker is that it failed to timely file its Form 10-Q for the first quarter of this year. That only adds to the delisting risks tied to Faraday Future stock.</p><p>We can pour through all the analytics tied to FFIE and its present troubles. However, I believe that the company was already troubled from the beginning due to its absurdly high pricing. With that, everything has fallen due to the domino effect. Therefore, I am bearish on Faraday Future stock.</p><h2 id=\"id_2214699729\">Faraday Future Stock Had No Chance</h2><p>According to <em>Car and Driver</em>, Faraday’s FF91 2.0 Futurist Alliance requires a $5,000 deposit against the asking price of a whopping $309,000. By the way, that does <em>not</em> include a destination charge. You have to pay extra for that. That’s really all I needed to know about Faraday Future stock.</p><p>Okay, that’s not entirely fair. As the automotive journal pointed out, you can acquire the “base” model Futurist for $249,000. That only requires a $1,500 deposit. And apparently, the FF 91 2.0 will be a bit cheaper, carrying a deposit requirement of only $1,000.</p><p>I understand the basic assumption. With EVs still priced significantly more than their combustion-powered equivalents, the sector may not be ready for prime time. Rather than wait for the middle-income crowd to boost their earnings, it may be better to target wealthier consumers.</p><p>I believed such a business approach made perfect sense for premium EV manufacturer <strong>Lucid</strong> (NASDAQ:<strong>LCID</strong>). Of course, the difference here is that the base model Lucid Air starts at $69,900. Or you can lease this luxurious platform for $649 per month. These are also elevated prices to be sure. But they’re within a range of reasonability based on the broader post-pandemic paradigm.</p><p>On the other hand, FFIE is occupying another dimension, an alternate universe where the median income is $566,064. How did I get that number?</p><p>Generally, you shouldn’t spend more than 10% of your net monthly income on a car payment. Using a loan calculator, a “cheap” Faraday with a $5,000 down payment requires a monthly bill of $4,717.20 based on a 60-month term at 6% interest.</p><p>You can play with the numbers but the bottom line is that someone needs to be making half-a-million per year to afford a Faraday.</p><h2 id=\"id_2443763692\">What is the Addressable Market?</h2><p>Critically, the sky-high pricing of the EVs raises the next logical concern: what is the addressable market undergirding Faraday Future stock? I’m not sure anyone has a great answer to this question.</p><p>Let’s go back to Lucid. Its addressable market centers on EV buyers focused on higher-end offerings by <strong>Tesla</strong> (NASDAQ:<strong>TSLA</strong>). Currently, the most expensive model from the House of Musk is the Model X Plaid, starting at just under $120,000. Lucid aims to steal market share away from Tesla and its pricing reflects this strategy.</p><p>The thing is, even with a clear roadmap, I was wrong about Lucid. LCID has unfortunately been a poor performer.</p><p>With that context in mind, I’m not sure what to make of Faraday Future stock. The underlying company features EVs that are priced twice that of Tesla’s most expensive ride. At the same time, it’s a significant discount to <strong>Rolls-Royce</strong> (OTCMKTS:<strong>RYCEY</strong>) but here’s the problem: what is this market? For people who want something more exclusive than a Tesla but can’t afford a Rolls-Royce?</p><p>If such a consumer demographic exists, I highly doubt that it’s large enough to sustain Faraday Future stock. Check that, we know that this market isn’t big enough to support FFIE. In Q4 2023, the company posted sales of only $800,000.</p><h2 id=\"id_2862175613\">A Note About the Short Squeeze</h2><p>Of course, we must give some respect to Faraday Future stock regarding its short-squeeze potential. Per Fintel, the short interest stands at 31.5% of its float. If shares start to rise again, exposed bearish traders could panic out of their positions, leading to dramatic upside pressure. I wouldn’t feel comfortable directly shorting FFIE.</p><p>However, I’m not entirely opposed to the idea of buying long-term puts against it. As stated earlier, the company got off on the wrong foot with its model pricing. Bluntly speaking, the market that Faraday is attempting to carve out doesn’t exist and may never exist.</p>","source":"investorplace_stock_picks","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why is Faraday Future (FFIE) Stock a Sell? 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It’s All About This\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-05 21:13 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://investorplace.com/2024/06/why-is-faraday-future-ffie-stock-a-sell-its-all-about-this/><strong>InvestorPlace</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Shares of EV manufacturer Faraday Future Intelligent Electric (FFIE) were on a fire sale over the past week.Without getting into complicated analytics, the case against FFIE is all about pricing....</p>\n\n<a href=\"https://investorplace.com/2024/06/why-is-faraday-future-ffie-stock-a-sell-its-all-about-this/\">Web Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"LU2602419157.SGD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"AC\" (SGD) ACC","LCID":"Lucid Group Inc","LU2756315318.SGD":"ALLIANZ INCOME AND GROWTH \"AMG\" (SGDHDG) INC A","LU0082616367.USD":"摩根大通美国科技A（dist）","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","LU0348723411.USD":"ALLIANZ GLOBAL HI-TECH GROWTH \"A\" (USD) INC","BK4099":"汽车制造商","FFIE":"Faraday Future","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","BK4548":"巴美列捷福持仓","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","LU1429558221.USD":"Natixis Loomis Sayles US Growth Equity RA USD","LU1861558580.USD":"日兴方舟颠覆性创新基金B","LU1839511570.USD":"WELLS FARGO GLOBAL FACTOR ENHANCED EQUITY \"I\" (USD) ACC","LU1861559042.SGD":"日兴方舟颠覆性创新基金B SGD","IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU0823411888.USD":"法巴消费创新基金 Cap","LU1435385759.SGD":"Natixis Loomis Sayles US Growth Equity RA SGD-H","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0056508442.USD":"贝莱德世界科技基金A2","LU0719512351.SGD":"JPMorgan Funds - US Technology A (acc) SGD","LU1914381329.SGD":"Allianz Best Styles Global Equity Cl ET Acc H2-SGD","LU2326559502.SGD":"Natixis Loomis Sayles US Growth Equity P/A SGD-H","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","LU0820561909.HKD":"ALLIANZ INCOME AND GROWTH \"AM\" (HKD) INC","BK4555":"新能源车","LU0820562030.AUD":"ALLIANZ INCOME AND GROWTH \"AMH2\" (AUDHDG) H2 INC","BK4533":"AQR资本管理(全球第二大对冲基金)","LU2063271972.USD":"富兰克林创新领域基金","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","BK4547":"WSB热门概念","LU2756315664.SGD":"ALLIANZ INCOME AND GROWTH \"AMI\" (SGDHDG) INC","LU0823414478.USD":"法巴经典能源转换基金","BK4527":"明星科技股","LU0097036916.USD":"贝莱德美国增长A2 USD","LU0466842654.USD":"HSBC ISLAMIC GLOBAL EQUITY INDEX \"A\" (USD) ACC","LU2087621335.USD":"ALLSPRING GLOBAL FACTOR ENHANCED EQUITY \"A\" (USD) ACC","LU0689472784.USD":"安联收益及增长基金Cl AM AT Acc","BK4588":"碎股","BK4550":"红杉资本持仓","LU1852331112.SGD":"Blackrock World Technology Fund A2 SGD-H","LU0943347566.SGD":"安联收益及增长平衡基金AM H2-SGD","LU0198837287.USD":"UBS (LUX) EQUITY SICAV - USA GROWTH \"P\" (USD) ACC","LU0316494557.USD":"FRANKLIN GLOBAL FUNDAMENTAL STRATEGIES \"A\" ACC","LU1861215975.USD":"贝莱德新一代科技基金 A2","BK4551":"寇图资本持仓","LU0820561818.USD":"安联收益及增长平衡基金Cl AM DIS","LU0234572021.USD":"高盛美国核心股票组合Acc"},"source_url":"https://investorplace.com/2024/06/why-is-faraday-future-ffie-stock-a-sell-its-all-about-this/","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2440283657","content_text":"Shares of EV manufacturer Faraday Future Intelligent Electric (FFIE) were on a fire sale over the past week.Without getting into complicated analytics, the case against FFIE is all about pricing.Despite the short-squeeze speculation, Faraday Future stock should be avoided.Source: T. Schneider / Shutterstock.comTo be blunt, no shortage of arguments exist against acquiring shares of electric vehicle manufacturer Faraday Future Intelligent Electric (NASDAQ:FFIE). For starters, the 60-month beta on FFIE stands at 1.63, indicating severe volatility relative to the broader equities index. Second, Faraday Future stock was only priced at around 4 cents a share before skyrocketing. Even so, it’s still down 99% over the past 52 weeks.Then there are the financial woes. In a Form 10-K disclosure, the company issued a going concern risk. Further, management may move to seek bankruptcy protection unless it’s able to secure new funding. Another major eyesore for the EV maker is that it failed to timely file its Form 10-Q for the first quarter of this year. That only adds to the delisting risks tied to Faraday Future stock.We can pour through all the analytics tied to FFIE and its present troubles. However, I believe that the company was already troubled from the beginning due to its absurdly high pricing. With that, everything has fallen due to the domino effect. Therefore, I am bearish on Faraday Future stock.Faraday Future Stock Had No ChanceAccording to Car and Driver, Faraday’s FF91 2.0 Futurist Alliance requires a $5,000 deposit against the asking price of a whopping $309,000. By the way, that does not include a destination charge. You have to pay extra for that. That’s really all I needed to know about Faraday Future stock.Okay, that’s not entirely fair. As the automotive journal pointed out, you can acquire the “base” model Futurist for $249,000. That only requires a $1,500 deposit. And apparently, the FF 91 2.0 will be a bit cheaper, carrying a deposit requirement of only $1,000.I understand the basic assumption. With EVs still priced significantly more than their combustion-powered equivalents, the sector may not be ready for prime time. Rather than wait for the middle-income crowd to boost their earnings, it may be better to target wealthier consumers.I believed such a business approach made perfect sense for premium EV manufacturer Lucid (NASDAQ:LCID). Of course, the difference here is that the base model Lucid Air starts at $69,900. Or you can lease this luxurious platform for $649 per month. These are also elevated prices to be sure. But they’re within a range of reasonability based on the broader post-pandemic paradigm.On the other hand, FFIE is occupying another dimension, an alternate universe where the median income is $566,064. How did I get that number?Generally, you shouldn’t spend more than 10% of your net monthly income on a car payment. Using a loan calculator, a “cheap” Faraday with a $5,000 down payment requires a monthly bill of $4,717.20 based on a 60-month term at 6% interest.You can play with the numbers but the bottom line is that someone needs to be making half-a-million per year to afford a Faraday.What is the Addressable Market?Critically, the sky-high pricing of the EVs raises the next logical concern: what is the addressable market undergirding Faraday Future stock? I’m not sure anyone has a great answer to this question.Let’s go back to Lucid. Its addressable market centers on EV buyers focused on higher-end offerings by Tesla (NASDAQ:TSLA). Currently, the most expensive model from the House of Musk is the Model X Plaid, starting at just under $120,000. Lucid aims to steal market share away from Tesla and its pricing reflects this strategy.The thing is, even with a clear roadmap, I was wrong about Lucid. LCID has unfortunately been a poor performer.With that context in mind, I’m not sure what to make of Faraday Future stock. The underlying company features EVs that are priced twice that of Tesla’s most expensive ride. At the same time, it’s a significant discount to Rolls-Royce (OTCMKTS:RYCEY) but here’s the problem: what is this market? For people who want something more exclusive than a Tesla but can’t afford a Rolls-Royce?If such a consumer demographic exists, I highly doubt that it’s large enough to sustain Faraday Future stock. Check that, we know that this market isn’t big enough to support FFIE. In Q4 2023, the company posted sales of only $800,000.A Note About the Short SqueezeOf course, we must give some respect to Faraday Future stock regarding its short-squeeze potential. Per Fintel, the short interest stands at 31.5% of its float. If shares start to rise again, exposed bearish traders could panic out of their positions, leading to dramatic upside pressure. I wouldn’t feel comfortable directly shorting FFIE.However, I’m not entirely opposed to the idea of buying long-term puts against it. As stated earlier, the company got off on the wrong foot with its model pricing. Bluntly speaking, the market that Faraday is attempting to carve out doesn’t exist and may never exist.","news_type":1},"isVote":1,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"tweetType":1,"langContent":"CN"}],"hasMoreComments":true,"newsSizeData":{"likeSize":1,"commentSize":1,"repostSize":1,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false}}