Electric vehicle (EV) stocks like Tesla and Rivian have been volatile in 2025 due to clean energy policy changes. Smaller EV players, such as Faraday Future Intelligent Electric (FFAI), are prime targets for short sellers. FFAI’s recent surge, driven by meme-style trading, has caught investor attention.

Faraday Future, founded in 2014 in California, designs and builds electric vehicles with a market cap of $228 million. Despite a recent 44% surge in stock price, FFAI remains down 6.6% year to date due to production delays and cash-burn concerns.

Faraday reported minor revenue of $300,000 in Q1 2025 from vehicle deliveries, with a net loss of $43.8 million. The company’s balance sheet shows limited unrestricted cash of $9.5 million as of March 31, with total net assets of $139.8 million following recent funding.

To boost liquidity, Faraday secured a $105 million financing package in July 2025, mostly through convertible notes and warrants. This move, supported by existing institutional backers like Master Investment Group, aims to increase the company’s cash reserves significantly.

Despite the hype, Faraday Future faces financial risks with minimal revenue and low delivery numbers. The company has received Nasdaq delisting warnings and a Wells Notice from the SEC. While meme momentum drives volatility, investors should consider the unproven nature of Faraday’s business.

Read more at Yahoo Finance: Short Sellers Are Betting Against This EV Stock, and Shares Are Tearing Higher