Written by Cláudio Afonso | LinkedIn | X
Shares of electric vehicle maker Faraday Future had a tumultuous 2024, marked by dramatic stock surges (quickly followed by sharp declines) and two reverse stock splits to guarantee Nasdaq’s listing requirement.
Despite a 78% rally on Monday and a six-day gain of 249%, the stock remains down 88% year-to-date (as of Tuesday’s pre-market session) as it fails to sell its luxurious EV model, the FF91 2.0.
In the third quarter of the year, the company reported nine thousand dollars in revenue, down from $551,000 recorded in the same period a year earlier.
Stock Performance in 2024
The EV startup saw its shares climbing over 4,500% in just four trading sessions from $1.68 to $156. However, the gains were quickly erased, with the stock losing most of those gains over the subsequent 40 trading days.
As of December 20, shares were trading at $1.06—just above Nasdaq’s minimum listing requirement of $1. By Tuesday’s pre-market session, the stock had surged 249% to $3.70, after closing at $3.14 on Monday. Despite the late-year rally, the stock is still down 88% since January 1.
Three Reverse Stock Splits in 18 Months
To maintain its Nasdaq listing, Faraday Future has executed three reverse stock splits in the past 18 months. The first, a 1-for-80 split, occurred in August 2023, followed by a 1-for-3 split in March and a 1-for-40 split in August. Without them, the company would have been delisted for trading below $1.
Financial Overview
As of Tuesday, Faraday’s market cap value stands at approximately $142 million. The company reported a loss from operations of $25.2 million in Q3, down from the $66.4 million loss reported in the same period in 2023.
As of September 30, Faraday Future held $449 million in assets and $292.3 million in liabilities, resulting in a book value of $156.7 million.
In October, Palantir Technologies disclosed an 8.7 percent stake in Faraday Future, according to a regulatory filing, as part of a stock-for-debt settlement agreement between the two companies.
Palantir invested $25 million in Faraday Future shortly before the electric vehicle startup went public in July 2021. At the time, Palantir announced it had also entered a commercial agreement to provide its data analytics software to the EV maker.
Written by Cláudio Afonso | LinkedIn | X
