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Faraday Future Intelligent Electric (FFAI)
NASDAQ:FFAI
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Faraday Future Intelligent Electric (FFAI) AI Stock Analysis

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FFAI

Faraday Future Intelligent Electric

(NASDAQ:FFAI)

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Neutral 45 (OpenAI - 4o)
Rating:45Neutral
Price Target:
$2.00
▲(12.99% Upside)
Faraday Future Intelligent Electric's overall stock score is primarily impacted by its poor financial performance, which poses significant risks. While there are positive developments in corporate events and earnings call sentiment, these are overshadowed by the company's financial instability and bearish technical indicators. The stock remains a high-risk investment with potential for improvement if financial challenges are effectively managed.

Faraday Future Intelligent Electric (FFAI) vs. SPDR S&P 500 ETF (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 Inc. generates revenue primarily through the sale of its electric vehicles. The company's business model focuses on the production and direct sales of high-end electric cars, targeting both individual consumers and fleets. FFAI also explores additional revenue streams through technology licensing, partnerships, and potential subscription services related to vehicle connectivity and advanced driver assistance systems. Collaborations with technology firms and automotive suppliers play a significant role in enhancing the company's product offerings and market reach, contributing to its overall earnings.

Faraday Future Intelligent Electric Earnings Call Summary

Earnings Call Date:Aug 18, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 24, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong preorder momentum, successful product launches, technological advancements, and increased confidence from institutional investors. However, these positives were somewhat offset by increased operating cash outflows and a net loss from operations. Overall, the positive developments in sales, market expansion, and financial investments indicate a promising future, with challenges in financial management being addressed.
Q2-2025 Updates
Positive Updates
Strong Preorder Momentum
In Q2 2025, Faraday Future received over 4,000 nonbinding nonrefundable preorders for the FX Super One and exceeded 10,000 total preorders by July 31, 2025. This indicates strong demand for their new product.
Successful Product Launch
The global launch of the FX Super One MPV in Los Angeles was a success, showcasing groundbreaking products and generating significant impact in both the U.S. and China.
Celebrity Endorsements
Mariah Carey featured the FF 91 2.0 Futurist Alliance in her music video, enhancing the brand's image as an AI tech luxury brand.
Advancements in AI Technology
Released software version 2.00.58 for FF 91 and prepared for an update featuring a new voice assistant powered by AI, indicating technological progress.
Strategic Market Expansion
Signed a lease for a new facility in the Middle East, advancing presence in the region and supporting future vehicle customization and assembly operations.
Improved Market Confidence
Market capitalization increased nearly 300% after founder YT Jia rejoined as Co-CEO, showing regained market confidence.
Increased Institutional Investment
Top-tier investors like Vanguard and BlackRock increased their holdings, reflecting confidence in the company's growth potential.
Enhanced Financial Position
Financing activities generated $55.1 million in net cash inflows, a 106% increase year-over-year, bolstering liquidity.
Negative Updates
Increased Operating Cash Outflow
Operating cash outflow totaled $43.6 million for the first half of 2025, a 50% increase from 2024, driven by timing of payments and FX platform operational ramp-up.
Net Loss from Operations
Net loss from operations in Q2 2025 was $48.1 million, showing continued financial challenges despite cost management efforts.
Company Guidance
During the Faraday Future Intelligent Electric Inc. Second Quarter 2025 Earnings Call, the company provided extensive guidance on their strategic and financial progress. The management highlighted over 10,000 nonbinding preorders for the FX Super One, emphasizing their innovative B2B and B2C sales models. They celebrated the successful launch of the FX Super One MPV and the FF Super EAI F.A.C.E. System, noting significant cultural collaboration with celebrities like Mariah Carey. Technological advancements included the release of software version 2.00.58 for FF 91, featuring their proprietary voice assistant powered by large language models and generative AI. Financially, the company reported a net operational loss of $48.1 million for the quarter, with adjusted operating loss at $27.4 million, and a monthly burn rate of approximately $9 million. Despite these challenges, financing activities generated $55.1 million in net cash inflows, with significant investments from top funds like Vanguard and BlackRock. The company also highlighted progress in the Middle East market and plans to roll out the first FX Super One by year-end, alongside ambitious capital and market strategies, including innovative crypto initiatives.

Faraday Future Intelligent Electric Financial Statement Overview

Summary
Faraday Future Intelligent Electric faces substantial financial challenges. The income statement shows negative gross profit and consistent net losses, indicating operational inefficiencies. High leverage and low equity ratios on the balance sheet pose financial risks, while negative operating and free cash flow suggest liquidity issues.
Income Statement
12
Very Negative
Faraday Future Intelligent Electric's income statement shows significant challenges with negative gross profit, indicating a lack of efficiency in generating profits from its revenue. The company has consistently recorded net losses and negative EBIT and EBITDA margins, pointing to operational inefficiencies and financial instability. Revenue growth from 2023 to 2024 was negative, further highlighting the company's struggle to grow its top line.
Balance Sheet
25
Negative
The balance sheet indicates high leverage with a debt-to-equity ratio that highlights significant reliance on debt financing, posing financial risks. Stockholders' equity has been decreasing over the years, reflecting potential solvency issues. The equity ratio remains low, indicating a high level of liabilities relative to assets, which can be concerning for creditors and investors.
Cash Flow
18
Very Negative
Cash flow analysis reveals negative operating cash flow, suggesting that the company is unable to generate sufficient cash from operations to cover its expenses. The free cash flow is also negative, indicating the company's difficulty in maintaining liquidity without external financing. Despite some financing inflows, the overall cash flow position remains precarious.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue539.00K784.00K0.000.000.00
Gross Profit-83.49M-41.82M-2.69M-64.19M-3.52M
EBITDA-265.48M-383.13M-587.24M-354.15M-61.41M
Net Income-355.85M-431.74M-602.24M-516.50M-147.09M
Balance Sheet
Total Assets425.40M530.54M510.29M907.43M316.38M
Cash, Cash Equivalents and Short-Term Investments7.14M1.90M16.97M505.09M1.12M
Total Debt99.15M144.32M68.03M188.28M531.62M
Total Liabilities310.43M302.30M327.54M339.78M895.72M
Stockholders Equity114.97M228.24M182.75M567.65M-579.34M
Cash Flow
Free Cash Flow-77.77M-309.29M-506.28M-435.45M-41.77M
Operating Cash Flow-70.19M-278.18M-383.06M-339.76M-41.16M
Investing Cash Flow-7.38M-31.11M-123.22M-95.68M2.99M
Financing Cash Flow80.73M291.45M-6.72M966.57M36.83M

Faraday Future Intelligent Electric Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.77
Price Trends
50DMA
2.24
Negative
100DMA
1.81
Negative
200DMA
1.60
Positive
Market Momentum
MACD
-0.16
Positive
RSI
41.97
Neutral
STOCH
37.52
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FFAI, the sentiment is Negative. The current price of 1.77 is below the 20-day moving average (MA) of 1.97, below the 50-day MA of 2.24, and above the 200-day MA of 1.60, indicating a neutral trend. The MACD of -0.16 indicates Positive momentum. The RSI at 41.97 is Neutral, neither overbought nor oversold. The STOCH value of 37.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FFAI.

Faraday Future Intelligent Electric Risk Analysis

Faraday Future Intelligent Electric disclosed 99 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
51
Neutral
15.67B-4.61-379.72%9.60%-5.91%
45
Neutral
$260.56M-320.23%-43.10%98.55%
45
Neutral
17.22M-0.04-365.78%11.73%74.79%
44
Neutral
7.38M-0.20-42.29%2.97%-11.17%
43
Neutral
6.48B-1.83-95.34%39.01%7.12%
38
Underperform
7.59M-0.380.00%0.00%0.00%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FFAI
Faraday Future Intelligent Electric
1.77
-1.33
-42.90%
WKHS
Workhorse Group
1.12
-8.38
-88.21%
EVTV
Envirotech Vehicles
2.09
-16.91
-89.00%
NIO
Nio
7.37
2.05
38.53%
LCID
Lucid Group
21.10
-13.50
-39.02%
PEVM
Phoenix Motor
0.87
-1.28
-59.53%

Faraday Future Intelligent Electric Corporate Events

Product-Related AnnouncementsShareholder MeetingsBusiness Operations and Strategy
Faraday Future Plans 919 Futurist Day Event
Positive
Sep 8, 2025

On September 7, 2025, Faraday Future Intelligent Electric Inc. announced plans for the 919 Futurist Day & Stockholders’ Community Day on September 19, 2025, at their Los Angeles headquarters. The event will unveil the FX Super One’s unseen interior and product highlights, and discuss the company’s three growth engines, including the C10 Treasury and FF EAI Vehicle Chain products. The FX Super One has been showcased across key states, drawing significant interest from industry partners. The company also highlighted recent crypto investments and the importance of Proposal 4, which seeks to increase shares under the equity incentive plan to attract and retain top talent.

Private Placements and FinancingShareholder MeetingsBusiness Operations and Strategy
Faraday Future Co-CEO Invests in Company Stock
Positive
Sep 3, 2025

On September 3, 2025, Faraday Future announced that its Founder and Co-CEO, YT Jia, purchased approximately $180,000 of the company’s common stock, reflecting confidence in the company’s long-term strategy. This purchase is part of a planned total investment of $560,000, derived from his signing bonus. The company also plans a special stockholder meeting on September 19, 2025, to vote on proposals supporting strategic initiatives, including increasing authorized shares and amending the 2021 Stock Incentive Plan to offer competitive equity incentives.

Product-Related AnnouncementsBusiness Operations and Strategy
Faraday Future Plans Middle East Launch of FX Super One
Positive
Sep 2, 2025

On September 1, 2025, Faraday Future announced plans for the final Middle East launch of its FX Super One at the end of October 2025, with sales and first deliveries to begin in November. This strategic move is expected to enhance the company’s market presence in the Middle East, a region known for its high-net-worth individuals and supportive business policies. The launch is part of Faraday Future’s broader strategy to integrate its operations globally, including building a facility in Ras Al Khaimah and forming partnerships with dealer groups in the region. The company is also advancing its dual-flywheel model combining electric automotive innovation with cryptocurrency investments.

Executive/Board ChangesBusiness Operations and Strategy
Faraday Future Appoints New Global Supply Chain Head
Positive
Aug 28, 2025

On August 28, 2025, Faraday Future announced the appointment of George Li as the head of its global supply chain for both FF and FX divisions. Li, a veteran in automotive supply chain management, is expected to enhance supplier partnerships and operational resilience. His role also includes serving as Chief Strategic Cooperation & Business Growth Officer in China, which aligns with the company’s strategy to strengthen its presence in the Chinese market. This appointment is anticipated to positively impact Faraday Future’s vehicle programs and global supply chain system, supporting the company’s long-term growth and innovation goals.

Private Placements and FinancingBusiness Operations and Strategy
Faraday Future Leaders Execute Significant Stock Purchases
Positive
Aug 27, 2025

On August 26, 2025, Faraday Future announced that its Founder and Co-CEO YT Jia and Global President Jerry Wang executed stock purchases under 10b5-1 plans, emphasizing their commitment to the ‘Stockholder First’ principle. These purchases, including Jia’s $200,000 and Wang’s $25,000 investments, are part of a broader strategy involving additional share purchases by company leaders, reflecting confidence in the company’s long-term vision and ability to achieve key milestones.

Private Placements and FinancingRegulatory Filings and Compliance
Faraday Future Amends Series B Preferred Stock Designation
Neutral
Aug 22, 2025

On August 21, 2025, Faraday Future Intelligent Electric, Inc. filed an amendment to the Certificate of Designation for its Series B Preferred Stock, designating an additional 3,000,000 shares as Series B Preferred Stock. This move follows a securities purchase agreement made on July 14, 2025, and maintains the existing preferences, rights, and limitations of the stock, potentially impacting the company’s financial strategy and stakeholder interests.

Product-Related AnnouncementsDelistings and Listing ChangesBusiness Operations and StrategyFinancial Disclosures
Faraday Future Reports Q2 2025 Financial Results
Positive
Aug 19, 2025

Faraday Future reported its second quarter 2025 financial results, highlighting a significant operational and financial improvement. The company achieved an 18-month high in cash position, was added to the Russell 3000 Index, and saw increased holdings by top-tier fund managers. The FX Super One vehicle entered trial production, and the company launched a new ecosystem strategy at Pebble Beach. Notably, Mariah Carey will own an FF 91 2.0 Futurist Alliance, enhancing brand visibility. The company plans to invest $100 million into U.S. operations and continue expanding its presence in the Middle East.

Product-Related AnnouncementsBusiness Operations and Strategy
Faraday Future Unveils ‘EAI + Crypto’ Strategy
Positive
Aug 18, 2025

On August 16, 2025, Faraday Future announced the launch of its ‘EAI + Crypto’ strategy, unveiling the ‘C10 Index’ and ‘C10 Treasury.’ This initiative integrates AI with the crypto asset economy, positioning the company at the forefront of AI mobility and Web3 integration. The strategy includes a $500M–$1B target for crypto asset purchases and aims to enhance the company’s financial structure through a dual-flywheel and dual-bridge ecosystem. This move is expected to maximize stockholder value and drive growth by combining AI innovation with the high-growth potential of crypto assets.

Business Operations and StrategyFinancial Disclosures
Faraday Future to Unveil Strategy Upgrade at Monterey
Positive
Aug 13, 2025

Faraday Future Intelligent Electric Inc. announced that it will report its second quarter financial results for 2025 on August 18, 2025, followed by an earnings call. The company will also unveil a major strategy upgrade, the Dual-flywheel & Dual-bridge Eco Strategy, on August 16, 2025, at Pebble Beach during the Monterey Car Week. This strategy aims to enhance capital returns, cash flow, and stockholder value by creating a fast-growth system of two independent yet mutually empowering flywheels. The announcement is part of a series of activities featuring the FF 91 2.0 and FX Super One vehicles.

Private Placements and FinancingBusiness Operations and Strategy
Faraday Future’s Strategic Stock Issuance on August 6
Neutral
Aug 8, 2025

On August 5, 2025, Faraday Future Intelligent Electric Inc. entered into a Purchase Agreement with Matthias Aydt to issue and sell one share of its newly designated Series A Preferred Stock for $100. The issuance of this stock, completed on August 6, 2025, impacts the company’s voting structure by granting the Series A Preferred Stock 5 billion votes solely on the Share Authorization Proposal, aligning its vote with the common stockholders. This strategic move aims to streamline decision-making processes, potentially influencing the company’s governance and shareholder dynamics.

Private Placements and FinancingLegal Proceedings
Faraday Future Secures $82 Million in New Financing
Neutral
Jul 16, 2025

On July 14, 2025, Faraday Future Intelligent Electric Inc. entered into a Securities Purchase Agreement with institutional investors, securing $82 million in financing through unsecured convertible notes and warrants. This financing, along with an additional $22 million from previous investors, totals $105 million, which the company plans to use for launching its new product, FX Super One, and advancing its position in the AI electric vehicle market. However, the company and some of its executives received a Wells Notice from the SEC, indicating potential enforcement actions for alleged violations of federal securities laws related to past financial dealings. The company plans to engage with the SEC to avoid enforcement actions, which, if resolved, could enhance its engagement with major investors and banks.

Product-Related AnnouncementsBusiness Operations and Strategy
Faraday Future Welcomes Mariah Carey as FF 91 Owner
Positive
Jun 16, 2025

On June 15, 2025, Faraday Future announced that global music legend Mariah Carey will become the next owner of the FF 91 2.0, marking a significant addition to the company’s celebrity owner family. This collaboration, highlighted by Carey’s new music video featuring the FF 91 and FFZERO1 concept car, reinforces Faraday Future’s brand power and positions it as a leader in the luxury electric vehicle market, emphasizing its focus on AI innovation and cultural co-creation.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Sep 09, 2025