come on fara, you can do this! give us all silly bag holders that good feeling
MF0408
hace 3 semanas
Analysis
FF 8-K Financing Breakdown: Lifeline Cash or Dilution Trap?
Faraday Future recently disclosed a $25 million financing through Senior Convertible Notes, mainly targeting institutional investors. On the surface, this gives FF some much-needed cash, but the structure of the deal looks highly risky for common shareholders.
The key concern is that this appears to be a variable-price convertible note structure. In simple terms, if the stock price drops, the conversion price can also drop, meaning noteholders may receive more shares when converting. That can create heavy dilution pressure.
This is why people often call this type of financing a potential “death spiral”:
1. FF receives convertible debt financing.
2. The stock price falls.
3. The conversion price adjusts lower.
4. Investors get more shares at a lower effective price.
5. Investors may sell those shares into the market.
6. More selling pressure pushes the stock even lower.
7. The cycle repeats, causing further dilution.
Some of the most concerning terms include:
* Floating conversion price based around the lowest VWAP over the previous 5 trading days.
* Very low floor price: $0.15528, compared with an initial conversion price of $0.3882.
* Floor breach risk: if the stock breaks below the floor, it may trigger penalties or an increase in principal.
* Default interest rate up to 15%, compared with the normal 8%.
* DACA control account arrangement, which may give investors more control over company cash flows.
* FF may need to register up to 200% of the shares required for conversion, showing how large the potential dilution could be.
Why would FF accept this kind of deal? Most likely because the company is still in survival mode. Vehicle deliveries remain limited, cash burn is high, and traditional financing options are likely very limited. This type of financing may provide short-term liquidity, but it comes at a significant long-term cost to common shareholders.
For shareholders, the main takeaway is:
This financing may help FF stay alive in the short term, but it also introduces serious dilution risk. There could be short-term volatility or even a speculative bounce, but the long-term risk remains extremely high unless FF can materially improve production, deliveries, cash flow, and investor confidence.
In my view, this is not just a “bullish financing signal.” It is more like highly dilutive rescue financing. Common shareholders should watch closely for:
* Future share issuance
* Actual delivery improvement
* Cash burn trend
* Nasdaq compliance risk
* Reverse split risk
* Further dilution or additional financing rounds
Not financial advice, but this 8-K looks like a major dilution warning rather than a clean positive catalyst.
Oliver11
hace 3 semanas
Expectations for today
Presonally, i think it will drop a bit at open, but then its gonna recover, depends how big the spread gonna be. Careful with SL
Funnypanda
hace 4 semanas
Well…
A reverse split if the company deems it’s necessary… I’m usually the glass half full kind of panda but this thing reaching and keeping it above a dollar on its own to maintain nasdaq listing status is something I can’t see happening. A miracle needs to happen and it needs to happen next week 🤦🏻♀️ go broke or go home, am I right? 🤣
JimPiano
hace 4 semanas
Reminder to vote
Check your emails for Faraday, and vote on what they are doing with your investment.
I personally voted against a reverse stock split. NFA
6% up since this bulletin, hopefully can make a steady move
Pb1
el mes pasado
Hopefully this will help turn this around??
Funnypanda
el mes pasado
can someones make this make sense
the volume is similar to any other day today and the inflow is higher than the outflow. Although it had an insane outflow the first hour of open market, surely with the amount of inflow at .38 compare to the current outflow order, this will pull upward rather than down.... am I missing something or is this short covering because of a possible injection????? sorry to ask a dumbass question. I just can't make send of it
MF0408
el mes pasado
No cars but new story lol
FFAI may have strong AI/robotics hype potential, but the risks are extremely high.
The company still has:
* Very small revenue
* Massive ongoing losses
* Heavy cash burn
* Serious dilution risk
* Dependence on future financing to survive
Right now, the stock is trading more on AI narrative and speculation than real fundamentals. Yes, it could spike hard from momentum or a short squeeze, but these types of stocks can also collapse very quickly.
This is a high-risk speculative play, not a stable long-term investment.
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Compra y vende Faraday Future Intelligent Electric Inc -0,0028 $ (0,95 %) y más de 13.000 acciones y ETF mundiales
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¿Cuál es el precio de la acción de Faraday Future Intelligent Electric (FFAI)?
El precio actual de Faraday Future Intelligent Electric (FFAI) es 0,29 $.
¿Cuál es el máximo de 52 semanas de FFAI?
El máximo de 52 semanas de FFAI es 3,61 $.
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El mínimo de 52 semanas de FFAI es 0,21 $.
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Durante la última semana, el precio de FFAI ha cambiado en -8,9 %.
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Durante el último mes, el precio de FFAI ha cambiado en -19,25 %.
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En los últimos tres meses, el precio de FFAI ha cambiado en -17,72 %.
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En los últimos seis meses, el precio de FFAI ha cambiado en -71,78 %.
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En el último año, el precio de FFAI ha cambiado en -80,62 %.