Faraday Future Intelligent Electric Inc FFIE began trading Monday on a split-adjusted basis following its 1-for-40 reverse stock split and announced a launch event for its China-U.S. Automotive Bridge Strategy.
What To Know: Faraday Future Intelligent Electric implemented a reverse stock split at a ratio of 1-for-40 after the market close on Friday. The stock began trading on a split-adjusted basis on Monday.
Every 40 shares of the company’s outstanding common stock was automatically combined and converted into one share. As a result, Faraday Future Intelligent Electric’s total authorized share count was reduced from 4,169,812,500 to 104,245,313.
The Los Angeles startup also announced that it will hold a launch event for its China-U.S. Automotive Bridge Strategy on Sept. 19. Faraday Future said it will provide an execution plan for the strategy and introduce more details about its second automotive brand at the event.
“Our Bridge Strategy could introduce a ‘performance capable EV at a fraction of the price,’ by empowering a second brand with much of the core technologies used on the $300,000 FF 91,” said Matthias Aydt, Global CEO of Faraday Future. “A mass-market second brand could make the ‘AI car of the future’ the AI car of the people.”
Faraday Future noted that it has engaged in discussions with “several leading Chinese OEMs and global suppliers” and received positive feedback on how it could help bridge the U.S. and Chinese automotive industries through industrial coordination and collaboration.
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. In the case of Faraday Future, which is trading at $4.24 as of publishing time, $100 would buy you 23.58 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.
FFIE Price Action: Faraday Future shares were down more than 21.8% at $4.02 at the time of publication, according to Benzinga Pro.
Photo: courtesy of Faraday Future.
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