Faraday Future Intelligent Electric Inc

Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE) is a shared intelligent mobility ecosystem company. The Company designs and engineers intelligent, connected, electric vehicles. Its technologies include its Variable Platform Architecture (VPA), propulsion system, and Internet, Autonomous Driving, and Intelligence (I.A.I.) system.

Recent Business and Financial Updates

• Nasdaq Delisting Determination and Intention to Appeal:
  • Faraday Future Intelligent Electric Inc. announced that it received a delisting notice from The Nasdaq Stock Market LLC on April 24, 2024. The notice indicated that the Company was not in compliance with Nasdaq Listing Rule 5810(c)(3)(A)(iii) due to its securities having a closing bid price of USD0.10 or less for ten consecutive trading days. As a result, Nasdaq has determined to delist the Company's securities from The Nasdaq Capital Market.
  • Previously, on December 28, 2023, Nasdaq notified the Company of non-compliance with Listing Rule 5550(a)(2) as the bid price of its listed securities had closed below USD1.00 per share over the past 30 consecutive business days. The Company was given 180 days, until June 25, 2024, to regain compliance with this rule. Additionally, on April 18, 2024, Nasdaq informed the Company that it had not filed its Form 10-K for the year ended December 31, 2023, thus violating Listing Rule 5250(c)(1). This filing deficiency constitutes another basis for delisting under Listing Rule 5810(c)(2)(A).
  • The Company plans to request a hearing to appeal the Delisting Determination by May 1, 2024, which will stay the suspension of its securities for 15 days, allowing them to continue trading on The Nasdaq Capital Market. The Company will also seek an extended stay pending the hearing with Nasdaq’s Hearings Panel. If the appeal is not filed by May 1, 2024, trading of the Company’s common stock will be suspended on May 3, 2024, and a Form 25-NSE will be filed with the Securities and Exchange Commission, removing the Company's securities from listing and registration on Nasdaq.
  • Faraday Future is exploring all options to regain compliance, including filing its 2023 Annual Report on Form 10-K, timely filing its Quarterly Report on Form 10-Q for the quarter ended March 31, 2024, and considering a reverse stock split with stockholder approval.
• Statement on Recent Social Media Post: Faraday Future addressed a recent social media post made by YT Jia in his individual capacity. The Company clarified that the statements made in the video have not been approved by the Company and should not be attributed to it. While the video mentioned the possibility of Mr. Jia serving as co-Chief Executive Officer, the Company’s Board of Directors is not currently considering such an appointment.
• Nasdaq Compliance and Form 10-K Filing:
  • Faraday Future received another letter from Nasdaq on April 18, 2024, regarding non-compliance with Nasdaq Listing Rule 5250(c)(1) due to the delayed filing of its Annual Report on Form 10-K for the fiscal year ended December 31, 2023. The Company has 60 calendar days to submit a plan to regain compliance, with Nasdaq potentially granting an exception of up to 180 calendar days from the due date of the Form 10-K.
  • The Company had previously filed a Form 12b-25 with the U.S. Securities and Exchange Commission on April 2, 2024, indicating its inability to file the Form 10-K on time. Efforts are being made to file the Form 10-K by the end of April 2024, though the exact timing remains uncertain.
  • Faraday Future plans to submit a compliance plan to Nasdaq. During this period and any extension granted, the Company’s securities will continue to be listed on Nasdaq. Once the Form 10-K and any subsequent required filings are completed, the Company expects to regain compliance with Nasdaq Marketplace Rule 5250(c)(1).

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is May 17, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.