Faraday Future Intelligent Electric (FFIE) is trending today after announcing that it has signed a new expansion agreement. The electric vehicle (EV) producer has entered into a co-investment agreement with the Master Investment Group to expand into the Ras Al Khaimah region of the UAE. As part of this deal, Faraday will build a development hub there, which will include offices and engineering space.
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What’s Happening with Faraday Future Stock Today?
News of this agreement sent Faraday Future stock up significantly in pre-market trading today. FFIE stock initially rose more than 18%, but since the markets opened, it has started falling and is currently down 2%. The company has struggled significantly over the past year, with shares falling 85% in just the past three months.
There’s no question that this company is in need of a major growth-driving catalyst if it is going to turn things around. With today’s pre-market performance, investors are likely wondering if the UAE expansion is going to serve that purpose. Given the trouble it has faced in U.S. markets, it may make sense for Faraday to focus on expanding into other regions.
In light of this expansion, Matthias Aydt, Faraday’s Global CEO, recently addressed the UAE project, stating, “As the important center for industry, Ras Al Khaimah is the ideal place for the establishment of our operations to bring the best intelligent electric vehicle product and technology. We are proud to be able to participate in the development.”
Is Faraday Future Stock a Buy, Sell or Hold?
As Faraday Future is a penny stock that trades at only $2 per share, no analysts have issued recent coverage. Therefore, it is difficult to assess if FFIE stock should be considered a Buy, Sell, or Hold. As TipRanks reporter Casey Dylan notes, the company’s financials have shown improvement compared to recent periods. However, the EV market remains highly competitive, and Faraday is still operating at a disadvantage.
Setting up a facility in a prime UAE region might help shares rise in the short term. However, until Faraday can start putting cars on the road there, this international expansion isn’t likely to drive much long-term growth.
