Evidently it wasn't the Faraday Future Intelligent Electric (FFIE 0.85%) bulls that were charged up about the market opening after the long weekend. Instead, it's the bears that are roaring today with shares of the electric vehicle manufacturer plunging 8.6% as of 10:44 a.m. EDT.
The stock's drop today is hardly related to any disastrous news from the EV upstart; in fact, it was news that the company announced before the weekend -- nothing earth-shattering -- that seems to be the cause of the stock's decline.
After the market closed on Friday, Faraday Future announced it was postponing its Investor Day that had been scheduled for Sept. 21 due to the increasingly stricter restrictions related to COVID-19. Faraday Future did not reveal a date for the Investor Day to be rescheduled.
That's it? That's sending the stock down so sharply today? Apparently. The market hates uncertainty, and while the company attributed the postponement to the pandemic, investors may be worried that the cancellation of the event is actually a result of more significant challenges that the company is facing in developing its FF 91, all-electric luxury vehicle. Some skeptics, for example, may be concerned that the semiconductor shortage plaguing other carmakers is at play here, too.
Although Faraday Future disappointed the market with news that the Investor Day is on hold, the company attempted to allay investors' concerns, stating that production of the FF 91 is still on track to begin before July 2022, consistent with the company's previously stated goals.
Competition among EV makers has been ramping up considerably over the past year, and skeptics may fear that Faraday Future is not keeping pace with rivals Tesla and Lucid Group. Today's sell-off, however, seems like an overreaction, and it offers potential investors the chance to pick up shares at a more attractive price.