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.
For further details see:
Why Faraday Future Stock Popped Today, But Lordstown Motors and Nio Dropped