What happened
Faraday Future Intelligent Electric (FFIE -4.08%) stock fell double digits in Tuesday's trading. The electric vehicle (EV) company's share price ended the daily trading session down 11.1%, according to data from S&P Global Market Intelligence.
Faraday Future delivered its first EV today, a development that might otherwise be cause for bullish stock momentum. But the company has had a complicated history, and it appears that investors were hoping for a more concrete vision on the path forward following the delivery of its first FF 91 2.0 Futurist Alliance vehicle for the ultra-luxury EV market.
So what
Following its plans to begin deliveries of its first EVs in 2018, Faraday Future has finally delivered its first vehicle. The FF 91 2.0 Futurist Alliance is a luxury SUV that starts at a base price of $309,000 and sports an impressive range of features. The EV specialist will also offer other versions of the FF 91 starting at $249,000.
But there's still some doubt as to whether the company will shift into large production for the SUV family. Limited production and deliveries probably won't be enough to kick-start much recovery for the stock.
Now what
Following a series of production delays, Faraday Future wound up going public through a merger with a special purpose acquisition company (SPAC) in July 2021. Its stock has lost nearly all of its initial value since the merger.
While the vehicle delivery is seemingly good news, the press release announcing it is somewhat vague on how deliveries will ramp up going forward. Investors who were holding on to the stock in hopes of capturing a surge of bullish momentum ahead of the FF91 delivery may have also sold shares when gains didn't emerge following the delivery news.
With limited insight into the business operations and the path forward for the company, it's hard to assign too much significance to Faraday Future's first vehicle delivery.
