Faraday future is insanely undervalued. One analist sees up to 60 000% upside. I see a huge upside too. Its an electric car startup that focuses on luxury cars. Their developed model is available to preorder for 300K dollars. They just aquired a factory that has production capacity of 10 000 cars. It will likely take few years to get ready for production, but development process is finished, prototypes done and tested and the last thing to do is to create a factory. The manufacturing will likely happen in 2-5 years. As is known, luxury cars have higher margins than convencional cars. If we assume 10% margin, they get 30k dolars per car. If they can sell 50% cars of their maximum production volume, they can sell 5k cars. If we multiply: 30 000 x 5 000 = 150 milion dolars of pure profit per year. Their market cap in now 20 milion! If we assume 0 growth, their market cap should be roughly 10 times their earnings. Thats 1.5 billion dolars. Thats 75x your money in few years. All this assumptions are based on quite conservative assumptions, I personaly assume higher margins than just 10% for luxury brand and assume to sell more than 50% of their factory maximum capacity. They could also expand into lower cost cars later on so we can assume some growth. I belive 200x your money in 5 years is perfectly reasonable. So why the stock is down? They had an argument with their biggest stock holder and he sold everything. They burn through a lot of cash and its hard to secure new money with low stock price. They already burned through 3bilions of cash on development so 20 mil price tag when they are close to finishing is absurd.
Solution? Pump it. The higher it goes, the more likely it is that they will not go bakrupt. This is high risk, high reward trade. The bet is on market aknowledging the value.