Faraday Future Sees Retail Chatter Spike As New $41M Lifeline Lifts Stock

Faraday Future Intelligent Electric Inc. shares rose more than 9% in Monday’s session and extended gains in after-hours trading as the electric vehicle maker secured another financial lifeline to support its near-term goals.

The company said it had secured $41 million in new cash financing commitments, although it did not disclose any names, with plans to use the proceeds to accelerate growth and development.

Faraday said the financing is primarily structured as unsecured convertible notes and warrants, and includes the possibility of an additional $10 million commitment before the first closing.

The funds will support general corporate purposes, the expansion of the company’s FX brand, and strategic projects such as the rollout of the first FX vehicle by the end of this year.

Additionally, the money will also back artificial intelligence-related research, end-to-end autonomous driving development, and talent acquisition.

This marks Faraday’s third funding commitment of at least $30 million in the past six months and surpasses the previous rounds in September and December 2024. It also takes Faraday’s total committed financing over the past seven months to beyond $100 million.

"I am optimistic about the opportunities that this new funding will bring, including supporting the ongoing production of our FF 91 2.0 and the growth of the FX brand in 2025," CEO Matthias Aydt said.

The news sparked a frenzy among retail investors on Stocktwits, where message volume involving Faraday Future soared by 550% over the past 24 hours.

"This week and possibly into next week many lives will change. Long-time bagholders will finally get the relief they've waited for. New millionaires will be created," said one watcher, adding that the stock is "super close" to a breakout based on technical analysis.

However, a skeptic warned that more stock dilution is "coming down the pipe" as the financing is primarily structured through warrants and convertible notes.

Last week, Faraday Future announced that its first two FX 6 camouflaged prototype mules had arrived at its U.S. headquarters in Los Angeles.

Earlier this month, the company hosted its first Open AI Day, outlining FF and FX’s AI strategy, products, and technology. It also announced the establishment of Future Aiher, a new subsidiary focused on commercializing AI-driven range extender systems for extended-range electric vehicles.

Short interest in Faraday Future has declined slightly, from 24.3% at the start of the year to 22.8% by the end of last week.

According to Koyfin data, Faraday Future reported just $7.3 million in cash at the end of the last quarter, with a total debt of $116.5 million. Deliveries of its high-end FF91 EVs have been minimal, and no major analysts currently cover the stock.

Over the past 12 months, its retail following on Stocktwits has surged 130%, while message volume has jumped 680%, even as the stock’s price has plummeted more than 99%.

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