Retail Traders FOMO into This EV Startup’s 177% MTD Surge WITHOUT Knowing Its Ugly Truth…

Faraday Future is back on Wall Street’s radar, and this time, it’s not just the Reddit crowd frothing at the mouth. Shares of the struggling-but-still-kicking EV startup surged nearly 40% on Monday after the company announced two things: a new high-profile customer and a fresh strategy to stave off irrelevance (and bankruptcy). But, but, but… before you get too horned up over it, this rollercoaster may be more Six Flags than Tesla. 

(Source: Giphy) 

First up, Faraday Future unveiled that entrepreneur and Los Angeles Chinese community leader Luke Hans will be the proud recipient of the first FF 91 2.0 Futurist Alliance EV of 2025. (Yes, that’s the actual, very extra name of the car.)  This isn’t just any delivery—it’s a $309,000 luxury EV that can go 0 to 60 mph in 2.27 seconds with a range of 381 miles. Think Rolls-Royce vibes but with a tech bro twist.

(Source: StockTwits) 

However, with that said, Hans isn’t just a customer; he’s also  been named an FF Developer Co-Creation Officer—a title so ambiguous it might as well come with a LinkedIn endorsement for “synergy.”  He’s expected to leverage his vast network in real estate, car rentals, oil, and pharma to help Faraday Future boost sales, foster innovation, and tap into global markets. Translation: Hans is here to make sure the FF 91 doesn’t just end up as a collector’s item for crypto whales.

Which is where the latest stock surge comes from. See, Faraday Future shares have been riding a meme-stock-esque wave lately, with retail traders lighting up message boards like it’s 2021 again. The stock was up over 30% in premarket trading yesterday only to catapult through the rest of the trading session to clinch a 177% MTD gain. The crazy part? This comes right after a brutal 94% drop earlier in the year. So, why the sudden love, you ask?

(Source: Electric-Vehicles.com) 

Good question. In short, the new deliveries are reigniting hopes that Faraday Future can actually sell its ultra-luxury EVs. Additionally, the company recently received a $30 million cash injection to develop its more affordable Faraday X line, targeting the mainstream U.S. EV market. (Don’t get too excited—it’s still just prototype “mules” for now.) On the other hand, with over 38% of the stock held short, these spikes could simply be fueled by short squeezes rather than the actual underlying fundamentals of the company.

But, but, but… even with all the jazz, it’s  worth remembering that Faraday Future has been here before. The company has spent most of 2024 teetering on the edge of financial collapse, issuing a “going concern” warning in May and halting production of the FF 91 due to a cash crunch. Production eventually resumed mid-year, but demand for expensive EVs has been about as hot as Blockbuster’s streaming service (a.k.a. non-existent). 

(Source: Giphy) 

Plus, they also have the massive elephant in the room they are dealing with: The U.S. EV market is facing serious headwinds. Falling demand, price wars (thanks, Elon), and rising interest rates have created a perfect storm for startups. Even industry giants like Rivian and Lucid are struggling to justify their sky-high valuations. Faraday Future is trying to pivot with its Faraday X lineup, but competing in the EV mainstream is like bringing a knife to a gunfight—especially when you’re already running on fumes (financially speaking).

So in the end, is this really sustainable?  Sure, the FF 91 2.0 looks great on paper, and the collaboration with Luke Hans could open doors. But the reality is, selling $309K EVs isn’t exactly a growth strategy in a market that’s increasingly price-sensitive. And while the $30M financing commitment will keep the lights on for now, it’s a Band-Aid on a bullet wound.

(Source: Giphy) 

For now, Faraday Future’s stock is surging, but whether this is the start of a comeback or just another meme stock pump is anyone’s guess. Meaning, place your bets accordingly and don’t give into FOMO. Obviously, do what you will, but given this stock has plunged 94% right after a surge like this… well, the track record isn’t much of a vote of confidence for continued upward action. 

In the meantime, keep an eye on Faraday Future, and stay safe and stay frosty, friends! Until next time…

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Stocks.News holds positions in Tesla as mentioned in the article.