How to Buy Faraday Future (FFIE) Stock

SHORT ANSWER: You can buy FFIE stock with Interactive Brokers as your trusted online brokerage.

Electric vehicle (EV) manufacturers offer a myriad of benefits beyond an environmentally-friendly profile. This EV stock could easily turn into a darling of Wall Street, but it takes time for assets like these to turn into growth stocks.

Thanks to the surging popularity of EVs, Faraday Future appears poised to disrupt the automotive industry with a production vehicle that could be much more efficient than the gasoline cars that we see today. However, can Faraday Future outpace the combustion engine overnight? Likely not. It takes time for EV automakers like these to take hold, and this is a look at how these assets will fit into your portfolio.

Learn how you can buy Faraday Future (NASDAQ: FFIE) stock and gain exposure to the vehicle market.

How to Buy Faraday Future (FFIE) Stock

If you already know how to buy stocks, you’re in luck. The process of participating in the Faraday Future stock is no different than acquiring a garden variety stock.

Step 1: Pick a Brokerage

If you decide you want to buy Faraday Future stock, you must first pick a brokerage through which you want to conduct your trades. At present, you have several compelling choices, mainly because the rise of mobile trading platforms sparked competition. Most brokers now offer similar incentives, such as commission-free trading.

This leaves your decision-making process down largely to personal preference and your anticipated development in the investment field. For instance, if you work a busy schedule and have limited time to manage your portfolio, then a trading app may be most appropriate. On the other hand, if you want to fine tune your investing craft, then you should choose a full-service platform.

Step 2: Decide How Many Shares You Want

Deciding how many shares of Faraday Future you want to purchase mostly is a factor of personal risk tolerance. Financial advisors often recommend that you don’t bet too heavily on speculative or unproven investments.

Whatever that magic number is, you should figure it out prior to your transaction and stick to it. The market sparks many emotions, and the last thing you want is to let emotions be the driver of your trades rather than calm rational thinking.

Step 3: Choose Your Order Type

Once you have the above details squared away, you should familiarize yourself with these key market concepts.

• Bid: The bid is the highest price a buyer will offer for a stock. It is always lower than the ask.
• Ask: In contrast, the ask is the lowest price that a seller will accept. It is always higher than the bid.
• Spread: The spread is the difference between the bid and ask price. Principally, the spread represents the risk-reward profile of the market makers, who temporarily places blocks of shares on their books before distributing them to wanting buyers. Narrower bid-ask spreads indicate lower risk and therefore higher liquidity. Wider spreads indicate higher risk, which translates to lower liquidity.
• Limit order: To place an order at a specific price, choose a limit order, which will only execute if the target stock reaches said price. However, the disadvantage here is that no guarantee exists that the stock will reach your predetermined price, possibly leaving the order hanging unfulfilled.
• Market order: To enjoy a guarantee of transaction fulfillment, choose a market order, which automatically executes at the next available price. Be aware that market orders fulfill at rates least favorable to you -- buy orders on the ask, sell orders on the bid.
• Stop-loss order: A stop-loss order is a protective function that automatically exits you out of your holding at either a predetermined price or the next available price. Still, stop-loss orders add some unpredictability to your portfolio due to gap-down sessions, where the opening price of a new session starts much lower than the prior session’s close.
• Stop-limit order: To prevent such surprises, choose a stop-limit order, which only executes at a predetermined price. But note that as with regular limit orders, your stop limit can go unfulfilled if the target stock keeps dropping and never reaches your specified price.

Step 4: Execute Your Trade

To execute your trade, follow these steps for a market order:

• Select action type (buy or sell).
• Enter the shares you want to acquire (or sell).
• Execute the trade.

Placing limit orders follows the same process above but you will need to include your desired execution price.

Best Online Stockbrokers

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When Did Faraday Future IPO?

Faraday Future IPO’d on July 22, 2021 on the NASDAQ to great market demand. With an initial market value of just under $10 per share, the EV company was growing but found it difficult to surpass its IPO price.

Faraday Future Financial History

Faraday Future, founded in 2014 by Jia Yueting, is an electric vehicle startup based in Los Angeles, California. The company initially gained significant attention through ambitious promises of luxury electric vehicles and advanced technologies, positioning itself as a competitor to both established automotive giants and other electric vehicle manufacturers.

In the years following its inception, Faraday Future attracted considerable investment, raising over $1 billion to fuel its growth. Notably, the company secured funds through a joint venture with Chinese investors, which provided the necessary capital to develop its flagship model, the FF 91.

In early 2021, Faraday Future officially announced its merger with the SPAC, which valued the combined entity at around $3 billion. This merger was expected to provide FARADAY with much-needed capital to complete its manufacturing facilities and ramp up production of its electric vehicle offerings.

Despite the promising merger, the struggle for financial viability continued as Faraday faced several obstacles post-IPO in 2021. By mid-2022, various reports highlighted ongoing concerns about production delays and the ability to fulfill pre-orders for the FF 91.

In 2023, Faraday Future has faced challenges in achieving significant earnings and revenue growth amidst a competitive electric vehicle market. While they have strategically positioned themselves in the luxury EV market, their actual revenue figures have been below initial projections.

Faraday Future Potential

On the surface, it’s difficult not to get excited about Faraday. For one thing, its flagship EV accelerates from a standstill to 60 miles per hour in only 2.39 seconds, thanks to its 3 electric motors that churn out 1,050 horsepower.

To put this performance into context, the $215,000 Ferrari Portofino accelerates to the same speed from zero in 3.5 seconds. A 1.1 second gap is a lifetime in the premium automotive world.

EV purchases suit themselves best toward a wealthier clientele. Yes, automakers now offer cheaper EVs thanks to lower battery costs. Even so, the cheapest electric car you can buy from a major manufacturer is the Mini Cooper SE — a subsidiary of BMW — which has a pre-federal tax subsidy price of $30,750. That’s still out of the reach for many U.S. households.

But for the ultra-rich, price is no concern. Should everything go according to plan, Faraday will be a very profitable company, similar to Ferrari.

However, the challenge with going the ultra-luxury route is that Faraday has not yet established social cachet. It’s risky to charge Ferrari prices when you’re an automotive startup.

Lastly, while beauty is in the eye of the beholder, you might not appreciate its aesthetics. Specifically, its side profile appears too symmetrical, which contrasts sharply with popular automotive design.

Leveraging multiple advanced technologies, everyday usability and conveniences and exotic-car-beating performance, Faraday Future represents a welcome addition to the EV marketplace. And its focus on the ultra-wealthy is a wise business choice. If EV sales pick up, the market share this company holds might grow, giving investors a better option as they diversify their EV stocks.

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