FFIE Analysis: Is Faraday Future Stock the Middle East’s Best-Kept EV Secret?

Stock Market

Faraday Future Intelligent Electric (NASDAQ:FFIE), commonly shortened to Faraday Future for brevity’s sake, describes itself as a “global shared intelligent electric mobility ecosystem company.” It’s a promising small business with potential for growth. We assign Faraday Future stock a “B” grade.

Not long ago, Faraday Future shares quickly gained value because of the revival of meme stocks. This is certainly an important development, but you don’t have to obsess over memes. Faraday Future is a noteworthy company in its own right, irrespective of meme-stock trends, and you may choose to purchase a few shares as a speculative investment.

Faraday Future Is ‘Big in the Middle East’

Just to provide a little bit more detail, Faraday Future provides in-vehicle experiences through leading-edge technology.

Faraday Future’s concepts come to life for modern vehicle drivers with a “home living room experience,” possibly including livestreaming broadcasts, automated control of air conditioning and door locks, and even one-touch “zero-gravity seat adjustment.”

Yet, Faraday Future remains a fairly small company that’s not widely recognized in the U.S. (outside of meme-stock circles). That’s not necessarily a bad thing, though, since Faraday Future is a small business with high-growth potential.

The company’s growth story doesn’t have to take place entirely in the U.S. Faraday Future is headquartered in California, but the company has a strong business focus in the Middle East.

Multiple news releases make it crystal clear that Faraday Future is aggressively establishing its presence in the Middle East, and especially in the United Arab Emirates. This is highly reminiscent of electric vehicle manufacturer Lucid Group’s (NASDAQ:LCID) strong Middle East focus.

So, like Lucid Group, Faraday Future may be “big in the Middle East” irrespective of the company’s progress in the U.S. This geographic diversification could, in the long run, greatly benefit Faraday Future and its stakeholders.

Drilling Down on the Delisting Drama

Even if you’re bullish about Faraday Future’s multinational growth possibilities, there’s a separate news story that you’ll need to keep tabs on. In particular, according to an announcement in April, the Nasdaq exchange “has determined to delist” Faraday Future stock.

Previously, Faraday Future’s shares traded below $1 for 30 consecutive business days. Then, the stock traded at 10 cents or less per share for 10 consecutive trading days. Faraday Future was out of compliance with the Nasdaq exchange’s listing requirements.

There are ways to remedy this issue, such as enacting a reverse stock split. Indeed, Faraday Future actually implemented a reverse split earlier this year. Also, the Faraday Future share price surpassed $1 recently because of the rising tide of the meme-stock rally.

Faraday Future intends to appeal the Nasdaq exchange’s delisting determination. So, investors will definitely want to stay tuned for further developments regarding this ongoing news story.

Faraday Future Stock: Stay Small With Your Position Size

Given the potential delisting drama, it’s easy to see the investment risks associated with Faraday Future Intelligent Electric. Faraday Future could be “big in the Middle East” and elsewhere in the coming years.

It’s your call to make. Maybe you’re not ready to invest in Faraday Future because of the risks involved, and that’s perfectly fine.

If you choose to buy some Faraday Future shares, it’s wise to keep your position size small. With that in mind, we’re giving Faraday Future stock a “B” grade and will continue to monitor this intriguing vehicle-tech startup.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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