Palantir-backed Faraday Future Intelligent Electric Inc. (NASDAQ:FFIE) might be seeing some rays of hope as the struggling EV maker registered over 100% jump on Wednesday's pre-market. At the time of writing the article, FFIE was trading at $0.6309, according to Benzinga Pro.
What Happened: Shares of electric vehicle manufacturer Faraday Future soared by over 300% on Tuesday, despite looming delisting threats from the Nasdaq.
The company was served a delisting notice from Nasdaq on Apr. 24, after its share prices remained below $0.10 for ten consecutive days.
Previously, Nasdaq had cautioned Faraday Future about bid price non-compliance in late December and was given until June 25, 2024, to regain compliance with the Minimum Bid Price Requirement. The company was cautioned again earlier this month due to its failure to file its 2023 10-K form.
Why It Matters: The sudden surge in Faraday Future's stock price is largely credited to a post by Keith Gill, also known as "Roaring Kitty," a pivotal figure in the 2021 GameStop (NYSE:GME) surge. Roaring Kitty's surprise post on Twitter after a three-year hiatus sent GameStop and AMC Entertainment Holdings Inc (NYSE:AMC) shares soaring by 147% and 121% in Tuesday's pre-market, respectively, indicating a revival of the meme stock mania.
Similar price action has been observed in other heavily shorted stocks.
As per Fintel data, nearly 95% of Faraday Future's stock is currently sold short, leaving few shares available for trading, thus enabling significant short-term price movements.
Despite the recent stock performance, Faraday Future is grappling with financial challenges. The company recently averted eviction from its Los Angeles headquarters and is making efforts to raise funding to stay afloat.
While GameStop might have regained the momentum of meme stocks, it is still less consistent than Bitcoin (CRYPTO: BTC) which has registered almost 91% gains since Jan. 2021, the last time the markets were hit by meme stock mania.
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
Photo courtesy: Faraday Future