Shares of meme stocks AMC and Faraday Future surged by 25 and 27 percent respectively ahead of market opening on Monday, driven by a sharp rise in GameStop’s stock, which climbed over 100 percent in the first minutes of premarket trading.
This spike followed a portfolio update from the Reddit account that fueled the meme-stock saga in 2021, revealing a $115.7 million position in GameStop.
The influential investor, known as Roaring Kitty on YouTube and X, shared a screenshot on Reddit on Sunday showing his portfolio holding 5 million shares worth $115.7 million as of Friday’s closing price.
Additionally, the post included a position of 120,000 call options in GameStop with a strike price of $20, set to expire on June 21, purchased at approximately $5.68 each.
Faraday Future‘s stock closed 3 percent higher on Friday at $0.5834, marking a 1,312 percent increase over the last 30 days.
Despite this, the stock remained 15.78 percent lower year to date based on the latest closing price. If the stock maintains its current value later today, it could erase its year-to-date losses and turn positive on the year this Monday.
Last week, Faraday Future‘s Founder and Chief Product & User Ecosystem Officer, YT Jia, released a video criticizing what he described as “biased interpretations” from certain media outlets and “attacks by malicious short-selling institutions” affecting the company’s market performance.
Earlier in the week, Faraday Future disclosed it had preliminary discussions with several global OEMs and suppliers to explore how the company could facilitate coordination between the US and Chinese automotive industries.
On May 17, Faraday Future’s stock price soared to $3.89, although earnings results reported last week caused the shares to plummet by 91 percent to $0.35 per share.
In response to a 62 percent drop in stock price on Wednesday, CEO Matthias Aydt posted a video addressing investor concerns about dilution and bankruptcy risks. Following the video, the stock surged by 27 percent. The company stated it aims to provide a strategic update within the next month or two.
Aydt explained that shares were issued gradually over several months to existing institutional investors, mainly through convertible bonds, to avoid bankruptcy and delisting amid severe financial challenges.
He highlighted collective sacrifices, including salary reductions and cost-cutting measures, positioning the company for potential recovery. Aydt reassured investors that the company and its original institutional investors have not engaged in transactions with the nearly 400 million shares issued, emphasizing a commitment to protecting retail investors’ interests..
Last week, the company disclosed it had “preliminary discussions with several global OEMs and suppliers” on how the company can “help build a bridge between US and Chinese automotive industries through industrial coordination and collaboration”.
The company is expecting to provide additional details on the “US-China Automotive Industry Bridge Strategy” which reflects an adjusted corporate strategy by returning to the earlier two-brand setup to distinguish market segments.
Faraday admitted that the move will enable the integration of FF’s high value “Ultimate AI TechLuxury” solutions and features of its I.A.I technology into vehicles in a more affordable mass market product segments.
The California-based startup published on Tuesday its fourth quarter and full year financial results disclosing that it is withdrawing its production target guidance for 2024.
