RIDE - Why Faraday Future Stock Popped Today But Lordstown Motors and Nio Dropped
Don't look now, but the electric car industry is getting more crowded, and it's having disparate effects on the players today.
In a bold announcement, start-up Faraday Future (NASDAQ: FFIE) -- which bills itself as not just an electric vehicle (EV) maker but a "global shared intelligent electric mobility ecosystem company" -- announced today that it has secured enough cash to begin production of its long-awaited FF 91 electric SUV . Shares of Faraday are up 3.7% as of 10:30 a.m. ET. In contrast, rival EV makers Lordstown Motors (NASDAQ: RIDE) and Nio (NYSE: NIO) are down 2.7% and 4%, respectively.
With no sales to its name, and consequently no revenue or profits, Faraday isn't in a position to fund its own growth just yet. Instead, it's doing the next worse thing: It's borrowing the cash.
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Why Faraday Future Stock Popped Today, But Lordstown Motors and Nio Dropped