Could a Monstrous Short Squeeze Be Lurking in Faraday Future (FFIE) Stock?
The ascent of Faraday Future stock on Tuesday hints at a potential tumultuous surge as intense trading propels FFIE shares to greater heights, possibly igniting a colossal short squeeze.
Faraday Future (FFIE) shares are on the rise this Tuesday, hinting at a probable major short squeeze brewing for the company’s stocks.
This surge seems logical given the staggering 95% short interest in the stock. Moreover, it coincides with a resurgence in meme stock fervor this week.
The current upward trajectory of Faraday Future (NASDAQ: FFIE) stock on Tuesday has investors speculating about the looming potential for a massive short squeeze in the electric vehicle (EV) company’s shares.
Investors are noting FFIE’s substantial short interest, which stands at 36.34 million shares, representing a whopping 95.33% of the company’s float. This precarious positioning renders it a prime candidate for a short squeeze.
One catalyst behind this surge could be the recent resurgence in meme stocks. Several stocks previously subjected to short squeezes in 2021 have seen notable gains lately, largely attributed to the resurgence of Roaring Kitty, the figurehead of the previous meme stock rally. FFIE could emerge as a fresh target amid this frenzied activity.
Faraday Future has been grappling with challenges lately, which have weighed heavily on its shares. These adversities have sparked heightened short interest in the stock and could be attracting meme traders to FFIE. The concerted effort to squeeze out shorts became a focal point for these traders back in 2021.
FFIE Stock Movement Today
The heightened interest in FFIE stock has fueled a surge in trading activity, with over 445 million shares changing hands at the time of writing. This surge dwarfs its daily average trading volume of approximately 41 million shares.
As of Tuesday morning, FFIE stock has surged by an impressive 155.8%. However, despite this rally, the stock remains down by 74% year-to-date (YTD).
Investors keen on staying abreast of the latest stock market developments will want to stay tuned!
We’ve got the hottest stock market updates lined up for Tuesday! Among them are the latest developments affecting shares of Virgin Galactic (NYSE: SPCE), MicroCloud Hologram (NASDAQ: HOLO), and BlackBerry (NYSE: BB). Dive into the details at the links below!
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As of the publication date, William White held no positions (directly or indirectly) in the securities mentioned in this article. The opinions expressed herein belong to the author and are subject to InvestorPlace.com’s editorial guidelines.