What happened

Investors initially cheered this morning after troubled electric vehicle (EV) start-up Faraday Future Intelligent Electric (FFIE -2.51%) announced it has finally begun production of its first EV offering. The stock popped more than 14% when the market opened today, but it quickly reversed course into negative territory. As of 10:55 a.m. ET, shares are barely back in the black, up 1.7%.

Image source: Faraday Future Intelligent Electric.

So what

Manufacturing was delayed as the company struggled to attain enough financing to begin production of its high-performance FF 91 Futurist. The company had previously warned that it would run out of cash before it could start production if it didn't raise additional capital. After securing $135 million through the issuance of convertible secured notes announced in February, the company said last night it has finally begun production. 

Now what

After an initial pop, however, investors likely realized that this news doesn't mean all is well with the business. And that pop didn't make much of a dent in returns for those who have held shares through the more-than-90% drop over the last year. 

Faraday's FF 91 will use more than 1,000 horsepower for 0-60 mph acceleration in just 2.27 seconds. While production has begun, a more comprehensive launch event will be held by the company in one month. The EV will reportedly cost around $200,000. 

Faraday says it hopes to disrupt the ultraluxury market by taking on brands including Ferrari, Mercedes-Benz Group's Maybach, and Volkswagen brand Bentley. 

That's a tall order for a start-up that barely made it to initial production. That helps explain the pessimism that took over this morning after the stock's brief jump on some positive news.