What's Going On With Faraday Future Intelligent Electric Stock?

Faraday Future Intelligent Electric Inc FFIE shares are trading lower by 22% to $0.13 during Thursday’s session after the company reported second-quarter results on Wednesday. The company will also carry out a 1-for-40 reverse stock split, starting August 16. This means that for every 40 shares currently owned, shareholders will receive 1 new share.

What Happened: Faraday Future reported its second-quarter 2024 earnings with a GAAP EPS loss of 31 cents, and the company's sales also totaled $293,000.

The company operating expenses reduced to $29.9 million from $49.4 million the previous year and a narrower loss from operations of $50.6 million compared to $56.0 million. The company used $29.1 million in operating cash over six months, down from $160.7 million in the prior period, and ended the second-quarter with $457.9 million in assets and $309.2 million in liabilities.

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Faraday Future says the company is focusing on cost reduction, vehicle production and expanding its market presence with a new China-U.S. Automotive Bridge Strategy and a Middle East sales entity. The company is also seeking additional strategic financing to support production and international growth while remaining compliant with Nasdaq listing requirements.

What Else: Following the 1-for-40 reverse stock split, the company’s authorized shares will decrease from 4.17 billion to 104.25 million, and all convertible securities, stock options and warrants will be adjusted proportionally. No fractional shares will be issued; instead, stockholders will receive one full share for any fractional amount.

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How To Buy FFIE Stock

By now you're likely curious about how to participate in the market for Faraday Future – be it to purchase shares, or even attempt to bet against the company.

Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.

In the the case of Faraday Future, which is trading at $0.13 as of publishing time, $100 would buy you 769.23 shares of stock.

If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.

According to data from Benzinga Pro, FFIE has a 52-week high of $66.00 and a 52-week low of $0.03.

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