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Faraday Future Intelligent Electric (FFAI)
NASDAQ:FFAI
US Market

Faraday Future Intelligent Electric (FFAI) AI Stock Analysis

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Faraday Future Intelligent Electric

(NASDAQ:FFAI)

36Underperform
Faraday Future Intelligent Electric's overall stock score is driven by significant financial instability, with ongoing challenges in profitability, efficiency, and cash flow management. The technical analysis further indicates mixed market sentiment, while negative valuation metrics underscore difficulties in achieving profitability. Despite recent corporate developments aimed at improving strategic direction and leadership, the company’s substantial financial and operational risks continue to weigh heavily on its stock performance.

Faraday Future Intelligent Electric (FFAI) vs. S&P 500 (SPY)

Faraday Future Intelligent Electric Business Overview & Revenue Model

Company DescriptionFaraday Future Intelligent Electric Inc. engages in the design, development, manufacture, engineering, sale, and distribution of electric vehicles and related products in the United States and internationally. The company was incorporated in 2014 and is headquartered in Gardena, California.
How the Company Makes MoneyFaraday Future Intelligent Electric makes money primarily through the sale of its luxury electric vehicles. The company's revenue model centers around the production and direct sales of its high-end electric cars, which are marketed towards affluent consumers seeking technologically advanced and environmentally friendly transportation options. FFAI may also generate additional revenue through strategic partnerships, collaborations with technology firms, and potential services related to vehicle connectivity and software upgrades. These partnerships can enhance the company's product offerings and market reach, contributing significantly to its earnings.

Faraday Future Intelligent Electric Financial Statement Overview

Summary
Faraday Future is facing significant financial challenges. The income statement shows very high negative profit margins and decreasing revenues. The balance sheet indicates high leverage and a negative return on equity, while cash flow analysis reveals substantial deficits. Overall, the financial position suggests a need for strategic improvements and highlights potential risks.
Income Statement
20
Very Negative
Faraday Future has shown a limited revenue base with significantly negative profit margins. The TTM data indicates a gross profit margin of -15353.62% and a net profit margin of -59281.56%, reflecting substantial losses relative to revenue. The company's revenue growth rate is negative, as revenue decreased from $784,000 in 2023 to $537,000 in the TTM period. The EBIT and EBITDA margins are also deeply negative, indicating ongoing operational challenges.
Balance Sheet
35
Negative
The balance sheet shows a high debt-to-equity ratio of 0.74, indicating significant leverage. However, the equity ratio stands at 34.90%, suggesting a moderate level of equity in the capital structure. Return on equity is notably negative at -203.10%, reflecting substantial losses on shareholder investments. These metrics highlight the company's financial instability and reliance on debt.
Cash Flow
25
Negative
Cash flow analysis reveals negative free cash flow growth, with free cash flow decreasing from -$309.29 million in 2023 to -$110.53 million in the TTM period. The operating cash flow to net income ratio is 0.28, indicating insufficient cash flow relative to net losses. Free cash flow to net income ratio is 0.35, highlighting cash flow difficulties amid ongoing financial struggles.
Breakdown
Dec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
784.00K0.000.000.000.00
Gross Profit
-41.82M-2.69M-64.19M-3.52M0.00
EBIT
-286.05M-450.99M-354.15M-64.94M-104.74M
EBITDA
-383.13M-587.24M-354.15M-61.41M-99.55M
Net Income Common Stockholders
-431.74M-602.24M-516.50M-147.09M-143.19M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.90M16.97M505.09M1.12M2.22M
Total Assets
530.54M510.29M907.43M316.38M315.22M
Total Debt
144.32M68.03M188.28M531.62M454.67M
Net Debt
142.42M51.06M-316.81M530.50M452.45M
Total Liabilities
302.30M327.54M339.78M895.72M754.88M
Stockholders Equity
228.24M182.75M567.65M-579.34M-439.66M
Cash FlowFree Cash Flow
-309.29M-506.28M-435.45M-41.77M-192.05M
Operating Cash Flow
-278.18M-383.06M-339.76M-41.16M-189.79M
Investing Cash Flow
-31.11M-123.22M-95.68M2.99M26.91M
Financing Cash Flow
291.45M-6.72M966.57M36.83M162.62M

Faraday Future Intelligent Electric Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.19
Price Trends
50DMA
1.18
Positive
100DMA
1.38
Negative
200DMA
2.77
Negative
Market Momentum
MACD
<0.01
Negative
RSI
52.96
Neutral
STOCH
38.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FFAI, the sentiment is Neutral. The current price of 1.19 is above the 20-day moving average (MA) of 1.09, above the 50-day MA of 1.18, and below the 200-day MA of 2.77, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.96 is Neutral, neither overbought nor oversold. The STOCH value of 38.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FFAI.

Faraday Future Intelligent Electric Risk Analysis

Faraday Future Intelligent Electric disclosed 98 risk factors in its most recent earnings report. Faraday Future Intelligent Electric reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Faraday Future Intelligent Electric Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$6.69B11.693.01%3.94%2.60%-21.51%
NINIO
47
Neutral
$7.97B-142.49%16.99%12.99%
45
Neutral
$7.10B-50.06%40.67%3.40%
39
Underperform
$5.43M-159.80%-49.47%54.99%
38
Underperform
$6.89M
36
Underperform
$106.56M-186.28%8.52%98.75%
34
Underperform
$5.73M-42.59%-34.68%34.15%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FFAI
Faraday Future Intelligent Electric
1.19
-1.25
-51.23%
WKHS
Workhorse Group
1.00
-44.57
-97.81%
EVTV
Envirotech Vehicles
0.25
-1.95
-88.64%
NIO
Nio
3.97
-1.44
-26.62%
LCID
Lucid Group
2.51
-0.30
-10.68%
PEVM
Phoenix Motor Inc
0.15
-0.33
-68.75%

Faraday Future Intelligent Electric Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q3-2024)
|
% Change Since: -2.46%|
Next Earnings Date:Aug 19, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant progress in cost reduction and strategic initiatives such as the launch of the FX brand and expansion in the Middle East. However, these are tempered by concerns over low cash reserves, limited vehicle deliveries, and ongoing financial losses.
Q3-2024 Updates
Positive Updates
Significant Cost Reduction
Operating expenses declined 92.6% to $3.8 million from $50.9 million in the prior year's quarter, primarily due to cost control initiatives and a nonrecurring gain of $14.9 million.
Nasdaq Compliance and Financial Restructuring
Regained full Nasdaq listing requirements compliance, completed a reverse stock split, and increased authorized share count. Successfully restructured certain convertible notes to reduce future cash obligations.
Introduction of FX Brand
Launched the FX brand targeting mass market segments with planned models FX 5 and FX 6, priced between $20,000 to $50,000. Entered preliminary agreements with 4 OEMs to leverage technologies and synergies.
Middle East Expansion
Announced a co-investment agreement with Master Investment Group to establish a regional headquarters in Ras Al Khaimah, marking progress in the Middle East as part of the third polar strategy.
Negative Updates
Low Cash Reserves
Ended the quarter with only $7.3 million in cash, highlighting concerns about liquidity and operational funding.
Limited Vehicle Deliveries
Delivered only 2 FF 91 2.0 vehicles in the third quarter, bringing the total deliveries to just 14 vehicles to date, indicating slow production and sales.
High Loss Before Income Taxes
Loss before income taxes was $77.7 million, slightly improved from $78 million in the prior year quarter, showing persistent financial challenges.
Company Guidance
During the third quarter of 2024, Faraday Future Intelligent Electric Inc. (FFIE) reported significant advancements in its operational and financial strategies, as discussed in their earnings call. The company achieved a substantial 92.6% reduction in operating expenses, bringing them down to $3.8 million from $50.9 million in the previous year's quarter, aided by a nonrecurring gain of $14.9 million. New financing commitments totaling $30 million were secured from investors across the Middle East, United States, and Asia, including $22.5 million in new investments. Additionally, FFIE delivered two FF 91 2.0 vehicles, increasing total deliveries to 14 and made strides in manufacturing improvements, reducing interior costs by half. The introduction of the FX brand aims to target mass market segments with models priced between $20,000 and $50,000, marking a strategic shift toward a dual brand strategy. The company also regained full Nasdaq compliance and restructured convertible notes to reduce future cash obligations, while maintaining total assets of $449 million and ending the quarter with $7.3 million in cash.

Faraday Future Intelligent Electric Corporate Events

Product-Related AnnouncementsPrivate Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Faraday Future Reports Q1 2025 Financial Results Growth
Positive
May 8, 2025

Faraday Future announced its financial results for the first quarter of 2025, highlighting a 21.6% increase in total net assets and the expansion of its client base with the delivery of the FF 91 2.0 in New York, marking its entry into the East Coast market. The company is preparing for the launch of its FX Super One model, targeting 10,000 pre-orders, and has secured significant B2B pre-order agreements, indicating strong demand for its mass-market EVs. Faraday Future is also advancing its AI technology and production capabilities, including the establishment of a new subsidiary for AI-powered hybrid electric powertrains and enhancements in its vehicle operating system. The company received substantial funding to support its growth and is actively engaging with investors and stakeholders to strengthen its market position.

Spark’s Take on FFAI Stock

According to Spark, TipRanks’ AI Analyst, FFAI is a Underperform.

Faraday Future Intelligent Electric’s overall stock score is driven by significant financial instability, with ongoing challenges in profitability, efficiency, and cash flow management. The technical analysis further indicates bearish market sentiment, while negative valuation metrics underscore difficulties in achieving profitability. Despite recent corporate developments aimed at improving strategic direction and leadership, the company’s substantial financial and operational risks continue to weigh heavily on its stock performance.

To see Spark’s full report on FFAI stock, click here.

Executive/Board ChangesBusiness Operations and Strategy
Faraday Future Appoints Yueting Jia as Co-CEO
Positive
Apr 25, 2025

On April 23, 2025, Faraday Future appointed its founder, Yueting Jia, as Co-CEO, marking a significant shift in its management structure. Jia’s appointment comes with a new equity incentive plan tied to the company’s market capitalization and stock price, reflecting a commitment to stakeholder value and aiming for significant business transformations, including achieving positive cash flow and profitability.

Spark’s Take on FFAI Stock

According to Spark, TipRanks’ AI Analyst, FFAI is a Underperform.

Faraday Future Intelligent Electric’s overall stock score reflects significant financial instability and technical weakness. Despite some strategic initiatives and new leadership aimed at improvement, the high leverage, negative cash flow, and continued financial losses pose substantial risks. The technical analysis indicates bearish trends, and the negative valuation metrics underscore the company’s struggle to achieve profitability. While recent corporate developments are positive, they are not sufficient to overcome the company’s current challenges.

To see Spark’s full report on FFAI stock, click here.

Business Operations and Strategy
Faraday Future Hosts Investor & Developer Event
Neutral
Apr 24, 2025

On April 23, 2025, Faraday Future Intelligent Electric Inc. announced via social media and its website that it will host the ‘FFAI Investor Community & FX Developer Co-Creation Day’ on April 24, 2025. The event will feature a keynote address by the company’s founder, Yueting Jia, and aims to engage shareholders and developers in the company’s future initiatives. This event is part of Faraday Future’s efforts to strengthen its community ties and enhance collaboration with stakeholders, potentially impacting its market positioning and operational strategies.

Spark’s Take on FFAI Stock

According to Spark, TipRanks’ AI Analyst, FFAI is a Underperform.

Faraday Future Intelligent Electric’s overall stock score reflects significant financial instability and technical weakness. Despite some strategic initiatives and new leadership aimed at improvement, the high leverage, negative cash flow, and continued financial losses pose substantial risks. The technical analysis indicates bearish trends, and the negative valuation metrics underscore the company’s struggle to achieve profitability. While recent corporate developments are positive, they are not sufficient to overcome the company’s current challenges.

To see Spark’s full report on FFAI stock, click here.

Private Placements and FinancingBusiness Operations and StrategyFinancial DisclosuresRegulatory Filings and Compliance
Faraday Future Reports Improved Financial Stability in 2024
Positive
Mar 27, 2025

Faraday Future announced its financial results for the fourth quarter and full year 2024, highlighting a significant reduction in net loss from operations and improved financial stability. The company secured over $70 million in funding, advanced its FX product development, and regained Nasdaq compliance, positioning itself for future growth in the premium AIEV segment and broader consumer market.

Executive/Board ChangesBusiness Operations and Strategy
Faraday Future Names Jiawei Wang as New President
Positive
Mar 24, 2025

On March 24, 2025, Faraday Future appointed Jiawei (Jerry) Wang as its new President, marking a strategic move to enhance corporate strategy and investor relations. Wang, a founding team member, is expected to drive growth in the U.S., Middle East, and China, focusing on operational efficiency, strategic partnerships, and capital market confidence. His appointment aims to accelerate the company’s FX business strategy and optimize its organizational structure, supporting long-term growth and shareholder value.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.