In an unexpected turn of events, Faraday Future Intelligent Electric Inc. (FFIE), the electric vehicle (EV) startup, finds itself in a challenging situation as it faces heat from the Securities and Exchange Commission (SEC) and reports bleak financial results. Despite efforts by Redditors to rally behind the company, its stock price fell in after-hours trading on Tuesday.

Faraday Future recently released its annual report for fiscal year 2023, revealing a revenue of $0.8 million. This figure is significantly below analyst estimates of $2.59 million, raising concerns among investors. While the net loss narrowed from $602 million in 2022 to $432 million in 2023, the financial picture remains concerning for the EV maker.

Adding to its struggles, Faraday Future reported a meager sales figure of only four FF 91 Futurist EVs since production began in March 2023, with an additional six leased. The company attributed this underwhelming performance to the "current inclement market conditions" and consequently withdrew its 2024 production guidance.

Furthermore, the EV startup's cash reserves dropped to $4 million at the end of 2023, including $2 million in restricted cash. This marks a significant decline from the $17 million it had at the end of 2022. In an attempt to address these financial challenges, Faraday Future plans to seek additional investors and explore equipment-backed financing to reduce its reliance on stock issuance. However, the company has ruled out issuing additional shares unless there is an increase in authorized share count as approved by shareholders.

The situation has intensified as Faraday Future received a warning letter from the SEC due to its late filing of the 10-Q report for the period ending March 31, 2024. This delay puts the company at risk of being delisted from the Nasdaq stock exchange. In response, Faraday Future has requested a hearing to present a plan for filing the report and addressing the stock price deficiency. It remains hopeful that its shares will continue trading during this process.

Despite the overall challenges and disappointing financial results, Faraday Future briefly gained attention in mid-May as it rallied alongside meme stocks such as GameStop and AMC Entertainment. The stock price surged from $0.0460 on May 10th to an intraday high of $3.90 on May 17th, resulting in an impressive gain of 8,280%. However, the stock has since pulled back.

In a show of solidarity, Redditors on the r/FFIE subreddit, boasting 49,000 followers, expressed strong support for the stock. Employing familiar tactics associated with meme stock squeezes, they encouraged fellow investors to hold and buy the dip. Despite the challenging circumstances, the Reddit community remains optimistic, urging each other to "hold the fort" and "unite harder than ever."

The impact of these online efforts on the stock price remains uncertain as the market opens on Wednesday. As of May 15, Faraday Future had 11.99 million shares held short, representing a decrease from the previous month. The short percent of the float stands at an elevated 28.27%.

Faraday Future's stock closed Tuesday's session at $1.17, reflecting a modest increase of 0.86%. However, it dipped by 0.85% in after-hours trading. Investors now eagerly await market response as the EV maker navigates its way through SEC scrutiny and attempts to overcome its financial challenges.