tiprankstipranks
Trending News
More News >
Faraday Future Intelligent Electric Inc. (FFAI)
:FFAI
US Market

Faraday Future Intelligent Electric (FFAI) AI Stock Analysis

Compare
2,491 Followers

Top Page

FF

Faraday Future Intelligent Electric

(NASDAQ:FFAI)

Rating:50Neutral
Price Target:
$1.50
▲(2.04%Upside)
Faraday Future's stock score is hindered primarily by severe financial challenges and valuation concerns. However, some positive technical signals and strategic corporate events provide a counterbalance, offering a mixed outlook. The stock remains risky due to its financial instability, but ongoing product and strategic developments show potential for future improvement.

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 (FFAI) is an innovative electric vehicle manufacturer focusing on the development and production of intelligent, luxury electric vehicles. The company operates in the automotive and technology sectors, leveraging cutting-edge design and engineering to create advanced electric vehicles that cater to a premium market segment. FFAI is committed to sustainability and the integration of smart technology in its vehicles, offering users an elevated driving experience.
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 Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q3-2024)
|
% Change Since: 20.49%|
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 Financial Statement Overview

Summary
Faraday Future Intelligent Electric is facing substantial financial challenges. The company shows negative gross profit and consistently records net losses, indicating inefficiencies and financial instability. The balance sheet reveals high leverage and potential solvency issues, while cash flow analysis indicates negative operating and free cash flows, exacerbating financial concerns.
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue853.00K539.00K784.00K0.000.000.00
Gross Profit-83.87M-83.49M-41.82M-2.69M-64.19M-3.52M
EBITDA-201.15M-265.48M-383.13M-587.24M-354.15M-61.41M
Net Income-317.91M-355.85M-431.74M-602.24M-516.50M-147.09M
Balance Sheet
Total Assets410.58M425.40M530.54M510.29M907.43M316.38M
Cash, Cash Equivalents and Short-Term Investments49.35M7.14M1.90M16.97M505.09M1.12M
Total Debt74.46M99.15M144.32M68.03M188.28M531.62M
Total Liabilities270.78M310.43M302.30M327.54M339.78M895.72M
Stockholders Equity139.81M114.97M228.24M182.75M567.65M-579.34M
Cash Flow
Free Cash Flow-84.06M-77.77M-309.29M-506.28M-435.45M-41.77M
Operating Cash Flow-75.01M-70.19M-278.18M-383.06M-339.76M-41.16M
Investing Cash Flow-8.94M-7.38M-31.11M-123.22M-95.68M2.99M
Financing Cash Flow93.32M80.73M291.45M-6.72M966.57M36.83M

Faraday Future Intelligent Electric Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.47
Price Trends
50DMA
1.25
Positive
100DMA
1.28
Positive
200DMA
1.65
Negative
Market Momentum
MACD
0.07
Positive
RSI
54.01
Neutral
STOCH
33.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FFAI, the sentiment is Positive. The current price of 1.47 is above the 20-day moving average (MA) of 1.42, above the 50-day MA of 1.25, and below the 200-day MA of 1.65, indicating a neutral trend. The MACD of 0.07 indicates Positive momentum. The RSI at 54.01 is Neutral, neither overbought nor oversold. The STOCH value of 33.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
61
Neutral
AU$2.78B25.795.01%5.27%2.63%-29.95%
50
Neutral
$143.51M-186.28%8.52%98.75%
45
Neutral
$6.47B-50.06%40.67%3.40%
43
Neutral
$10.80M-188.79%-53.55%65.29%
NINIO
41
Neutral
$7.05B-240.42%23.39%3.93%
39
Underperform
$4.36M-132.63%-47.62%8.34%
38
Underperform
$7.39M0.56-95.75%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FFAI
Faraday Future Intelligent Electric
1.47
-16.93
-92.01%
WKHS
Workhorse Group
1.14
-17.86
-94.00%
EVTV
Envirotech Vehicles
0.17
-1.73
-91.05%
NIO
Nio
3.46
-0.98
-22.07%
LCID
Lucid Group
2.12
-0.52
-19.70%
PEVM
Phoenix Motor Inc
0.15
-0.19
-55.88%

Faraday Future Intelligent Electric Corporate Events

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.

Product-Related AnnouncementsShareholder MeetingsBusiness Operations and Strategy
Faraday Future Confirms FX Super One Launch Timing
Positive
Jun 2, 2025

On June 1, 2025, Faraday Future held its first Annual Stockholders’ Day, confirming the FX Super One launch timing and securing a deposit for a 600 unit FX pre-order. The event highlighted the company’s commitment to transparency and stockholder engagement, with plans for an exclusive offline product launch on June 29 and a public launch on July 17. The company has reached over 2,500 B2B deposits for the FX Super One, marking significant progress toward challenging market leaders like the Cadillac Escalade. The company is advancing its digitalization efforts, enhancing its after-sales service program, and preparing for mass production and U.S. regulatory compliance. Additionally, Faraday Future’s Middle East facility is ready for occupancy, aiming to begin production of the FX Super One contingent on funding, which could attract strategic investors to the region.

Shareholder MeetingsBusiness Operations and StrategyRegulatory Filings and Compliance
Faraday Future Approves Proposals at Annual Meeting
Positive
May 29, 2025

On May 28, 2025, Faraday Future held its annual meeting where stockholders approved several proposals aimed at enhancing the company’s financial stability and strategic execution, including the election of directors and an increase in authorized shares. These decisions are expected to support the launch of the FX vehicle production by the end of 2025 and maintain compliance with Nasdaq listing standards, reflecting a commitment to stockholder value and strategic growth.

Business Operations and Strategy
Faraday Future Executives Initiate Stock Purchase Plans
Positive
May 28, 2025

On May 27, 2025, Faraday Future Intelligent Electric Inc. announced that its founder and Co-CEO, Yueting (YT) Jia, and Global President, Jiawei (Jerry) Wang, have entered into 10b5-1 stock purchase plans. These plans, initiated on May 23, 2025, reflect the executives’ personal commitment to the company’s future and aim to align their interests with those of the stockholders. The first trade window is expected to open around August 25, 2025, following a 90-day cooling-off period. The move is intended to demonstrate long-term confidence in the company’s vision and reinforce dedication to its mission.

Product-Related AnnouncementsBusiness Operations and Strategy
Faraday Future Highlights Growth at Emerging Conference
Positive
May 23, 2025

On May 22, 2025, Faraday Future’s Global President, Mr. Jiawei Wang, presented at the Emerging Growth Conference, highlighting the company’s business prospects and unique product offerings. The company has made strides in cost reduction and operational efficiency, with a significant decrease in cash burn by 75% year-over-year. Faraday Future is committed to achieving cash flow break-even and leveraging its global supply chain for scalable, low-cost production. The company has successfully delivered its FF 91 2.0 Futurist Alliance vehicles, meeting stringent safety and regulatory requirements, and continues to focus on expanding its market presence with innovative electric vehicle offerings.

Shareholder MeetingsBusiness Operations and Strategy
Faraday Future Announces Annual Stockholders’ Day Event
Positive
May 16, 2025

On May 15, 2025, Faraday Future Intelligent Electric Inc. announced its Annual Stockholders’ Day scheduled for May 31, 2025, at its Los Angeles headquarters. The event will feature a ride experience with FF and FX vehicles, pre-order opportunities for the FX model, and a Q&A session with company executives. The top 10 stockholders will receive an exclusive dinner invitation with company leadership. This initiative underscores Faraday Future’s commitment to transparency and stakeholder engagement as it advances its mission in the intelligent electric vehicle sector.

Private Placements and Financing
Faraday Future Amends Securities Purchase Agreement
Neutral
May 15, 2025

On March 21, 2025, Faraday Future Intelligent Electric Inc. entered into a Securities Purchase Agreement with investors to raise $41 million through the sale of convertible notes, stock purchase warrants, and preferred stock. On May 15, 2025, the company and investors agreed to amendments in the agreement, allowing for registration rights adjustments and closing conditions changes, impacting the timing and conditions of future closings.

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.

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.

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.

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: Jun 26, 2025