Why Faraday Future's Stock Is Down Today
Shares of embattled electric-vehicle start-up Faraday Future Intelligent Electric (NASDAQ: FFIE) were trading lower on Monday, a day ahead of a "business update" presentation that could deliver grim news to investors.
As of 11:30 a.m. ET, Faraday's shares were down about 8.6% from Friday's closing price.
There's a bit of a backstory to this one. Back in October, a short-selling firm issued a report on Faraday that called into question key parts of its story, including its claim to have received preorders for over 14,000 vehicles. That was enough to send the stock down sharply, as electric vehicle investors remain mindful of the grim examples of Nikola and Lordstown Motors, both of which fell sharply after independent investigations showed that similar short-seller reports turned out to be largely true.
Source Fool.com
