Why Faraday Future Stock Crashed Friday
Shares of electric vehicle start-up Faraday Future Intelligent Electric (NASDAQ: FFIE) had been on quite a tear recently. The stock tripled over a three-week period earlier this month.
But that surge came to a screeching halt this week, with shares plunging another 40% early Friday morning. After recovering some of that drop, as of 11:10 a.m. ET today, Faraday Future stock was still down 20.1%. The drop has nearly wiped out all of the recent 200% gain in Faraday shares.
That parabolic rise wasn't the result of company-specific news. Instead, it seems retail traders were anticipating a short squeeze in the stock as short interest jumped to represent 28.5% of the public float as of June 30, according to MarketWatch.
Source Fool.com
