FFIE Shares: Faraday Future on alert ahead of results this afternoon

One of the biggest breakout companies this quarter will soon report fourth-quarter 2023 earnings. Faraday Future Smart Electric (NASDAQ:FFIE) is the clear winner of the recent meme price surge. After months of falling to as low as $0.040 per share, the small-cap electric vehicle (EV) maker has surged thanks to an unexpected surge in retail trading. Now the excitement about the gains has subsided, but FFIE shares remain at a significantly elevated level, trading comfortably above $1 per share. This may not seem like much, but considering the low level of the stock just a few weeks ago, it is noteworthy.

Now Faraday Future is preparing to announce earnings after markets close today. What it reveals will largely determine its growth prospects in the second half of the year. This is one report that investors should take a close look at.

What’s happening with FFIE shares

As noted, FFIE is in the black today, but not by much. At the time of writing, the stock is up about 3% after steady intraday volatility. This is in line with last week’s trading, when shares fell 20% from rally-led highs. But now the Q4 earnings report is fast approaching, and with it comes market assessment day for new meme stocks.

Faraday Future’s earnings call will take place today at 8 p.m. EDT. FFIE stock will likely close in the green today, but if it falls short of Wall Street estimates, it could spell the end of the company’s streak. There are many factors to consider that may have a negative impact on the situation in the coming months. How ElectricVehicles.com reports:

“Despite a 291.21% year-to-date increase, the company’s stock remains 94.93% lower compared to last year. The company is currently contesting the company’s delisting notice from the Nasdaq after the stock traded below $0.10 for ten consecutive days. An appeal initiated in early May resulted in a temporary suspension of securities, which ended on May 16.”

Problematic electric vehicle stocks

These are just some of the reasons why experts consider Faraday Future to be a troubled electric vehicle company that investors should sell before it goes the way of another struggling automaker Fisker (OTCMKTS:FSRN). FFIE stock doesn’t receive much analyst attention, likely because it’s a micro-cap penny stock that, until recently, didn’t seem like it could even approach $1 per share.

Regardless, investors should prepare for trouble if Faraday’s earnings report shows the company’s problems are worse than expected.

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