Retail investors have been waiting for this moment for a long time.

The fantasy of an epic rise will one day actually happen to Faraday Future (FFIE)...

The cumulative increase in a single week was 21.34 times. The highest increase on Tuesday was 361%, and it fused 15 times in a row.

I also thought that Faraday's future luxury trains were selling well overseas. As a result, cars are still not selling well.

However, Lao Jia experienced the taste of “leading the big brother”, raised the banner of a “battle for listing eligibility” with continuous efforts on social media, and also took the initiative to carry the special mission of domestic brands entering the US market...

Almost on his own, Faraday's future miraculously survived the brink of delisting.

01

Anyone familiar with Jia Yueting knows that after the LeTV thunderstorm, he went to the US to start a car building business, was burdened with a debt of 3 billion US dollars, and came up with a plan to use Faraday's future equity to repay his creditors.

Global electrification was on the rise in '21. Faraday, which is positioned as an electric luxury car, will go public through SPAC in the future. Lao Jia continues to trick people. Investors think FF can share a share of the pie with Tesla, and they also view car companies such as Fisker, Rivian, and Lucid.

However, none of these car companies have met investors' expectations. Some time ago, Fisker was forcibly delisted from the NYSE because its stock price was below 1 US dollar/share for a long time.

Faraday is also on the verge of delisting in the future due to outrageous delivery data and slow profit delays. FF had a market value of over 5 billion US dollars when it went public, but shrunk 99% in less than three years thereafter.

FF's cumulative operating losses in the first three quarters of last year reached 220 million US dollars, and its cash reserves were only 8.567 million US dollars. The amount of cash alone was unpromising. FF was no longer able to pay rent for office buildings.

A total of 10 cars were delivered in 2023, and it is estimated that more than a minority of them were delivered or bought by themselves. Recently, it was announced that 11 FF 91 2.0 cars produced last year will be recalled, and there is no need to question the authenticity and safety of the data; it is almost equivalent to not making a car yet.

At a time when survival is at risk, Lao Jia is now in urgent need of funds and urgent attention, so he once again took responsibility and made a new cake.

First, he posted on Weibo on May 7 to announce his re-appointment as FF's co-CEO. The statement meant that he would take responsibility for saving FF and start commercializing personal IP to make money to repay debts and build cars. It also said that it had received a large number of cooperation requests, and the agreement was gradually being negotiated.

In May of last year, Jia Yueting officially entered the Douyin platform, creating momentum for the launch of FF91. In one day, Jia Yueting added more than 780,000 new fans. Currently, Jia Yueting has 15.174 million followers on Weibo, and the number of fans on Douyin has also reached 1.56 million.

This statement hit on the current trend of entrepreneurs using short videos and live broadcasts to channel their own products. Unlike influencers, entrepreneurs' IPs themselves must not only have a certain sense of the Internet, but also cannot be separated from the positioning and tone of their own products; otherwise, it is difficult to monetize them.

Jia Yueting also mentioned that what he wants to do is explore a new path of IP e-commerce 2.0 through several dimensions such as model innovation, AI technology innovation, IP e-commerce globalization, and Chinese brands going overseas, bringing high-quality Chinese products and supply chains to the US and overseas, and boosting external demand.

The delivery had a strong smell, but did you think that was it?

Worthy of course, Lao Jia, who can use ppt to build cars, quickly took advantage of the momentum to draw a big cake and let the stock market pay for it.

This “trend” is the tariff that just came into effect this week. Last Tuesday, the Biden administration announced an increase in tariffs on a range of Chinese imported products. In particular, Chinese cars are required to pay 100% tariffs when entering the US market.

Jia Yueting posted a video discussing this incident, saying that under the premise of complying with relevant US laws and regulations, Faraday can help car companies and supply chains quickly enter the US market in the future, reduce trial and error, and time costs. He hopes to have the opportunity to cooperate with Chinese car companies. Bringing high-quality Chinese products and supply chains to the US and overseas will become new monetization and revenue opportunities for Faraday in the future.

This is equivalent to a main mission that almost failed; first hit a copy to save some coins.

Lao Jia also coined a new term to define Faraday's future — “China-US automobile bridge.”

As can be seen, Lao Jia probably not only wants to earn money by live streaming, but also to develop the electric vehicle agency business of domestic car companies in North America.

Faraday will develop locally in the US in the future. At this stage, it may be the only electric vehicle securities that will not be affected by the ban. In the future, mergers and acquisitions may occur, thereby attracting speculation from retail investors.

Thanks to this concept, Faraday's future share price skyrocketed 367% on Tuesday. External media learned from relevant sources that external capital is currently in touch with Jia Yueting to express their willingness to invest in Faraday's future.

But this idea is quite unreliable. The US probably won't let go of this opportunity to take advantage of this kind of opportunity. Chinese car companies have a very small share of exports to the US, so even if they use FF to enter the US market, it is difficult to guarantee fair treatment. Lao Jia's commercial credit will surely make many NEV companies fond of it.

The name of this “leading brother” is limited to the stock market. Lao Jia's rhetoric is boastful, and the company never stepped down the stairs. Faraday Future stated that Jia Yueting's remarks did not represent the company, and currently the company's board of directors is not considering appointing him as co-CEO.

The current market value of less than 50 million US dollars is only worth nothing for the enterprise. Lao Jia can only represent his own situation, which is to make quick money to pay off debts sooner.

After a frantic rise to make up for it, FF's gains finally declined on Friday.

02

On the evening of the 17th, FFIE intraday trading soared to 135%, reaching a maximum of 3.9 US dollars per share. Based on today's high, the company's increase this week was close to an astonishing 100 times!

But then it took a sharp turn, and in the end, it actually closed down 38%. The turnover reached 3.188 billion US dollars, and the turnover rate was as high as 30 times that day.

It's not hard to see a very intense long and short game. Especially after a continuous increase of 367.54%, 147.19%, and 134.04% this Wednesday, retail investors resolved an empty order that weighed on Jia Yueting and brought Faraday's future to the brink of being delisted.

The trend of FF stock was sluggish for a long time, and even received a delisting warning from NASDAQ because the stock price was below 1 US dollar/share for 30 consecutive trading days and the stock price was below 0.1 US dollars/share for 10 consecutive trading days.

Since nearly 86% of the shares have been shorted, there are few remaining stocks that can be traded. Once the stock price rises, pressure from bears to make up may cause the stock price to rise further. The model is almost the same as Game Station (GME) and AMC Entertainment Holdings (AMC), and has become a battleground for retail investors to charge and fall into battle.

This is a meme stock frenzy. Faraday is succeeding the first two companies.

Beginning on Tuesday, May 14, the stock price rose from $0.09 to $0.28 at the close and continued to rush to $0.6 after the market, with a trading volume of 1.5 billion shares.

On the night of Thursday the 16th, FFIE rose 134%, with 789,400 options contracts sold, an increase of nearly 95 times over the 90-day average. Moreover, the trading volume of $1.5 active call options due on the same day was particularly high. A total of 157,508 contracts were traded.

However, Game Station rose by a total of 134% on Monday and Tuesday, making people think of this scene with the “feat” of retail investors fighting Wall Street in '21, all due to the return of the “big brother who took the lead.”

The trader, nicknamed “Roaring Kitty,” encouraged retail investors to buy GME on a Reddit forum back then. The stock price doubled tenfold in just a few days, leaving the bears with no return.

Because of his human nature, this “big brother” was so easy to talk that aroused strong feelings of FOMO (fear of running out) and YOLO (you only live once) from retail investors.

Last Sunday, only a post was posted on social media hinting at a return. GME's market capitalization increased by 6 billion US dollars in less than an hour. AMC, which is also emptying hot stocks, and Reddit, the newly listed “retail base camp,” also joined the war to empty space.

Bears lost $838 million in stocks after GME surged 74% on Monday, according to agency statistics.

However, the good times didn't last long; this time's long and empty power is not comparable to that of '21.

The options trading volume of these meme shares reached 700,000 on Monday, a fourfold increase from the average trading volume in the past month, but compared to the trading volume of millions in a single day in '21, it was still a dime.

Also, retail investors are not as united as they were in '21. Selling and buying orders on trading platforms are almost equal, indicating that they are selling more to each other and accepting when they see good.

Ultimately, the shrinking volume proved that the fervor could not continue. Following the announcement of additional shares issued by GameStop and AMC, retail investors thought it was time to cash out. Because of the quality of the company's operations, everyone has numbers. Retail investors lack confidence in the reversal of the company's difficult situation, so it is obvious that additional shares are being issued in order to cut chives, so in the next few days of this week, the amount of capital flowing into these two Meme shares will be smaller and smaller.

03

At the end of the day, retail investors also have limited power.

Because during the last wave of fervor, in order to prevent the economy from collapsing, the Federal Reserve was investing trillions of dollars in the US. At the time, the stock and cryptocurrency markets were booming, and by August '21, residents' excess savings reached a peak.

After the meme bubble was bursting, borrowing costs continued to rise along with interest rate hikes, and the cash reserves that retail investors could use were being exhausted, and the support that caused continued market turmoil was insufficient; moreover, after a sharp correction, retail investors mostly outweighed their gains and losses.

The continuous pullback in the second half of the week also showed that rough pattern recognition did not effectively guide investment; this time was different.

The “leading brothers” said one after another: they really can't move. (End of full text)