Faraday’s future (NASDAQ:FIE) the stock is accelerating more than 45% today as investors await the release by the electric vehicle (EV) company of its “global business transformation plan” on December 15. Faraday said he would also release his vehicle delivery plan for the FF 91 Futurist that day.
Meanwhile, FFIE shares are still down more than 90% year-to-date (YTD) on the heels of delayed releases, executive departures and a cash crunch. In July, the company pushed back production and delivery of the FF 91 to late 2022 due to supply chain inefficiencies and a lack of capital. Now, deliveries of the vehicle are not expected until next year. Faraday had 369 pre-orders as of November 17, compared to 399 pre-orders as of June 30.
Since September, the company has received $450 million in capital. This includes a $350 million line of credit from Yorkville Global Advisors and $100 million in funding for Senyun International. However, this may not be enough. The company recently warned that it “may need additional funds” in order to continue operations. Since its inception, Faraday has had an accumulated deficit of $3.3 billion, per TechCrunch.
Meanwhile, FFIE stock looks ripe for a short squeeze. As of November 30, there were a total of 52 million shares sold short worth $16.7 million. This equates to a short float percentage interest of approximately 21.6%, which is high enough to cause significant compression.
5 investors are betting big on FFIE shares
Tracking institutional ownership is important because these large investors provide liquidity and support for stocks. During the third quarter, 91 13F filers reported holding FFIE shares, down 20 filers from the previous quarter. Moreover, the institutional put/call ratio stands at 0.56, against 0.54. This equates to 4.48 million puts and 8.05 million calls, implying a bullish options stance.
With that in mind, let’s take a look at the companies that are betting big on FFIE. Please note that this list only includes investors who filed a position update in Q3. For instance, Creation of the Future Creditors Trust owns 64 million shares, but this figure is not accurate until the third quarter of 2021.
- FF upper support: 116.58 million shares. FF sold 1.11 million shares during the third quarter.
- smart season: 66.49 million shares. Season Smart’s position remained unchanged during the third quarter.
- YA II PNproperty of Yorkville Councilors Global: 39.56 million shares. YA acquired its entire stake during the third quarter.
- Senyun International: 25.33 million shares. Senyun acquired its entire stake during the third quarter.
- black rock (NYSE:noir): 8.16 million shares. BlackRock bought 610,748 shares during the third quarter.
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At the date of publication, Eddie Pan held (neither directly nor indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.