Faraday Future Intelligent Electric (FFIE) AI Stock Analysis

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Faraday Future Intelligent Electric

(NASDAQ:FFIE)

Rating:32Underperform

Price Target:―

Faraday Future's overall score reflects significant financial struggles, with ongoing losses and high leverage being primary concerns. Although there are positive developments in strategic initiatives and recent financing, these are overshadowed by the company's weak financial position and valuation challenges. Technical indicators provide limited positive momentum, but substantial risks remain.

Faraday Future Intelligent Electric (FFIE) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$91.91M

Dividend YieldN/A

Average Volume (3M)9.21M

Price to Earnings (P/E)―

Beta (1Y)8.62

Revenue Growth-2.54%

EPS Growth98.30%

CountryUS

Employees505

SectorConsumer Cyclical

Sector Strength76

IndustryVehicles

Share Statistics

EPS (TTM)-122.17

Shares Outstanding72,936,900

10 Day Avg. Volume4,582,786

30 Day Avg. Volume9,212,400

Financial Highlights & Ratios

PEG Ratio>-0.01

Price to Book (P/B)0.12

Price to Sales (P/S)122.40

P/FCF Ratio-0.83

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Faraday Future Intelligent Electric Business Overview & Revenue Model

Company DescriptionProperty Solutions Acquisition Corp is a blank check company.

How the Company Makes MoneyFaraday Future Intelligent Electric (FFIE) generates revenue primarily through the sale of its electric vehicles, particularly the FF 91 model. The company's revenue model includes direct sales to consumers, as well as potential partnerships with automotive retailers and leasing companies. FFIE also explores additional revenue streams such as software and technology licensing, offering proprietary technology and connectivity features to other automotive manufacturers. Furthermore, the company may engage in strategic collaborations with technology firms and suppliers to enhance its product offerings and expand its market reach.

Faraday Future Intelligent Electric Earnings Call Summary

Earnings Call Date:Nov 06, 2024

(Q3-2024)

% Change Since: -30.77%|

Next Earnings Date:May 09, 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 Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Breakdown
Income Statement		Total Revenue
537.00K	784.00K	0.00	0.00	0.00	0.00
	Gross Profit
-82.44M	-41.82M	-2.69M	-64.19M	-3.52M	0.00
	EBIT
-179.57M	-286.05M	-450.99M	-354.15M	-64.94M	-104.74M
	EBITDA
-200.08M	-383.13M	-587.24M	-354.15M	-61.41M	-99.55M
	Net Income Common Stockholders
-318.38M	-431.74M	-602.24M	-516.50M	-147.09M	-143.19M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.12M	1.90M	16.97M	505.09M	1.12M	2.22M
	Total Assets
316.38M	530.54M	510.29M	907.43M	316.38M	315.22M
	Total Debt
531.62M	144.32M	68.03M	188.28M	531.62M	454.67M
	Net Debt
530.50M	142.42M	51.06M	-316.81M	530.50M	452.45M
	Total Liabilities
895.72M	302.30M	327.54M	339.78M	895.72M	754.88M
	Stockholders Equity
-579.34M	228.24M	182.75M	567.65M	-579.34M	-439.66M
Cash Flow		Free Cash Flow
-110.53M	-309.29M	-506.28M	-435.45M	-41.77M	-192.05M
	Operating Cash Flow
-89.60M	-278.18M	-383.06M	-339.76M	-41.16M	-189.79M
	Investing Cash Flow
-20.84M	-31.11M	-123.22M	-95.68M	2.99M	26.91M
	Financing Cash Flow
109.57M	291.45M	-6.72M	966.57M	36.83M	162.62M

Faraday Future Intelligent Electric Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.26

Price Trends

50DMA

1.50

Negative

100DMA

1.54

Negative

200DMA

6.05

Negative

Market Momentum

MACD

-0.07

Positive

RSI

41.71

Neutral

STOCH

25.56

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FFIE, the sentiment is Negative. The current price of 1.26 is below the 20-day moving average (MA) of 1.38, below the 50-day MA of 1.50, and below the 200-day MA of 6.05, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 41.71 is Neutral, neither overbought nor oversold. The STOCH value of 25.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FFIE.

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 3 New Risks

FF has significant unfunded commitments from its investors. If FF is unable to satisfy the conditions to funding or if there is a dispute regarding the conversion requirements related to the unfunded commitments, FF may not have enough capital to support its business and could be subject to investor legal claims. Q4, 2023

FF is not currently in compliance with the continued listing requirements for Nasdaq and may be delisted, which could affect the market price and liquidity for the FF's Common Stock and reduce the FF's ability to raise additional capital. Q4, 2023

If FF seeks to implement a reverse stock split in order to remain listed on Nasdaq, the announcement or implementation of such a reverse stock split could negatively affect the price of its Common Stock. Q4, 2023

Faraday Future Intelligent Electric Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
F	77 Outperform	$40.64B	8.19	11.47%	7.22%	3.03%	28.54%
TSLA	74 Outperform	$1.15T	190.53	9.16%	―	1.03%	-53.71%
GM	71 Outperform	$46.72B	7.15	8.88%	0.97%	7.76%	-14.17%
Sector *	62 Neutral	$6.90B	11.20	2.94%	3.91%	2.68%	-25.01%
RIVN	56 Neutral	$17.20B	―	-53.82%	―	0.58%	35.39%
LCID	41 Neutral	$7.35B	―	-50.06%	―	40.67%	3.40%
FFIE	32 Underperform	$91.91M	―	-152.13%	―	-2.54%	98.30%

* Consumer Cyclical Sector Average

Performance Comparison

FFIE

Faraday Future Intelligent Electric

1.21

-23.78

-95.16%

Ford Motor

10.38

-0.92

-8.14%

General Motors

49.61

4.32

9.54%

TSLA

Tesla

346.46

170.17

96.53%

LCID

Lucid Group

2.23

-0.60

-21.20%

RIVN

Rivian Automotive

14.53

3.13

27.46%

Faraday Future Intelligent Electric Corporate Events

Private Placements and FinancingBusiness Operations and Strategy

Faraday Future Secures $30M for Growth and Expansion

Positive

Dec 23, 2024

Faraday Future has secured approximately $30 million in financing, consisting of $22.5 million in cash and $7.5 million converted from previous loans. This funding will support the company’s growth, particularly the development of its Faraday X (FX) strategy, which focuses on launching affordable, high-performance AIEVs in the U.S. market. The financing involves the issuance of unsecured convertible notes and warrants, and is expected to strengthen the company’s core business operations and facilitate the production of its FF 91 2.0 model and the FX brand.

Product-Related AnnouncementsPrivate Placements and FinancingBusiness Operations and StrategyRegulatory Filings and Compliance

Faraday Future Launches FX Brand and Secures Financing

Positive

Nov 6, 2024

Faraday Future announced a transformative third quarter in 2024, marked by the launch of its FX brand targeting the mass market with vehicles priced between $20,000-$50,000. The company secured $30 million in financing and regained Nasdaq compliance. With improved financials, including a significant reduction in operating expenses, Faraday Future is advancing its vehicle development and expanding geographically, focusing on the Middle East and its China-U.S. Automotive Bridge Strategy.

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.