The truth is nobody really knows but there are clues we will discuss below. The information delay on short interest is in fact, delayed.
Reporting Frequency: Short interest is reported bi-monthly by major exchanges like the New York Stock Exchange (NYSE) and NASDAQ. This means the data is published twice a month.
What we do know is that the float on FFIE is incredibly high. I haven't been following anything else. Presumably SINT is high too.
What most likely is happening and this is just a presumption is that people ran into purchasing the stock separately from closing their short. In this way, the stock position is now market neutral.
So why is the stock screaming higher? And, why am I so sure that there has probably been extremely limited short covering? 2 reasons.
Reason 1:
The effective out of circulation float, literally per the last report from finfiz.com is 97%. Remember this is not in real-time or current by any means. At some point this will be updated.
https://preview.redd.it/z9eg4jhhkq0d1.png?width=294&format=png&auto=webp&s=27566ef37c005d54428256e377c7030b18162805
Reason 2:
Math. Buying these shares and holding them to now is an insane percentage to the upside.
.10$ to .78$ is an astounding 680% return. However, in the reverse, if you had a short in at $10 per share and rode it all the way down to .10$ you would effectively have a return of 99%. Whether that short goes to .1 or .2 or .10 again there isn't much left past 99% as you are effectively going to the decimal places of the percentage.
For example, remember how the short at $10 went to .10$ and the return is 99%. The stock price rising to .90$ as it did yesterday would only decrease the shorters return from 99% to $91. That is only an ~8% decrease on an almost 100% return.
Nobody in their right mind would bat an eye to that and cover the short. And nobody, in their right mind, would want to purchase shorts at this time either.
But what if there was a way to look at the history of the price point per meaningful short purchases.
The reason why this part is important to understand is to see when meaningful shorts where purchased at what price points.
If only we could look at the history and find out. We're in luck. We can.
In a desperate attempt to keep the stock price above $1 Faraday issued a stock split reversal with these instructions.
Faraday Future Intelligent Electric Inc. (FFIE) announced a one-for-three (1-3) reverse stock split of its common stock on February 25, 2024, that took effect on February 29, 2024, and on March 1, 2024. The split-adjusted trading began on March 1, 2024, and the CUSIP number changed to 307359703.
So let's point out some key dates and price points.
pay attention to this graph at the time of a very massive short interest entered into the stock. Not to say there wasn't already a massive short interest prior to that date and of course a higher share price.
This is from Nasdaq.com
https://preview.redd.it/5l2scwf7kq0d1.png?width=1522&format=png&auto=webp&s=965a0f91b8b4034d134f7fbc34357e1e6cefc8f1
Now, notice a couple things. First, there was an 1:80 stock split REVERSAL at this point 8/28/23 (which is prior to the 1:3 mentioned previously)
So, the price points at close:
8/15 = $58.0800
8/28 = $28.4400
8/31 = $22.5750 (effective price prior to reversal = $.2821875)
Think about that. In all reality at this moment a stock worth $58 just 15 days earlier is now only worth at the same market cap $.28218.
To me this is meaningful date #1 and we would have to go to the current expected share price to figure out that short share price was at its current price using the $58 dollar price.
The math is 58 / 80 / 3 = $.24166
Now, those shorts may be gone But if the entry price was $58 dollars why would you care about selling out of your short for a miniscule gain? Your profits are 99.83% and now only 98.45% from the .10$- .90$. That wouldn't hurt a fly and nobody would probably sell that.
At $5 close price = 91.38%
At $10 close price = 82.76%
At $20 close price = 65.52%
At $50 close price = 13.79%
At $60 close price = 3.45%
At $75 close price = LOSS 29.31%
There is a peak at July 2022 of 1320.00 but it's not worth nothing because there would be no real share price that would effects the short unless it approached $100's of dollars.
So, the target before anyone started sweating to close a short from the August 15th time range would be at the $10 - $50 levels.
Yes, shorts that were bought at the $5 - $1 range are probably getting wiped out but that is the small people and tiny fraction and NOT the large institutional investors that meaningfully kicked off a massive short position in the August 2023 time range.
Once you seen the days to cover go to 1 on 9/15/2023 is when the shorts where in. That pricing began at $58/80/3.
It's not that the shorts are closed and covered. If that were true there wouldn't be any shorts. Hell no, all those shorts are firmly intact. It's not that the shorts are closed; it's that they don't give a shit the stock moved from .08$ - .90$.
The question you have to ask yourself is this. Do you want to go on a journey to $40 - $60 to make the shorts buckle. They don't buckle unless this goes past $1. The target isn't $1 and then sale. The target $100 or more.
This isn't financial advice or in anyway to make you do anything that isn't good for you and your family. Also, the probability of this happening is most likely improbable and seemingly impossible task. The only chance that the stock has is the short float that exists for shares still available to purchase. Right now, anyone selling the stock at any moment will only seek to unravel the chances it can pass $1. The only thing happening right now are people trading the stock in and out. Nobody is holding this stock because if there was meaningful buys the stock would broach $1 easily.
Either it gets to $50 or it ain't going to gamma and wipe out the 8/15 short positions. The media is not reporting it because nobody cares it's too insignificant. They don't hear you because the position is too small.
Do with this information as you need to. And be careful out there. I provide this information so you are fully informed. Maybe I made mistakes and you can please discuss them below. It's just how I see this problem solve. And
I just like the stock

Building a successful business is like climbing a mountain. The challenges differ depending on where you are on the climb. At the base, you're scrabbling for a foothold, gathering your gear, and figuring out the best path. As you ascend, the terrain changes, demanding new skills and equipment. Staffing your company follows a similar trajectory. The ideal team for a scrappy startup won't be the same one that propels a large enterprise forward.
This blog explores the different staffing solutions available at each stage of your business journey, from the lean and mean startup phase to the established and ever-evolving enterprise.
https://preview.redd.it/be7gd42kjq0d1.png?width=2240&format=png&auto=webp&s=99268e8bc1eebe7ebe7fb2d603da84508b8aac1e

The Startup: Building Your Base Camp

Imagine yourself at the foot of the mountain, brimming with ideas but with limited resources. Here, agility and adaptability are key. You need a team that can wear multiple hats and quickly learn new skills. Traditional full-time hires might not be the most efficient option at this point. Here's where some specialized staffing solutions come in:

• Temporary and Contract Workers: These are lifesavers for startups. They allow you to fill immediate skill gaps without the long-term commitment of a full-time employee. Need a marketing whiz to launch your website? Hire a contractor. Coding ninjas to build your app? Look for temporary developers. This flexibility helps you scale up quickly and cost-effectively, focusing your resources on core development.
• Freelancers and Independent Contractors: The freelance market is a treasure trove of talent. You can find experienced writers, designers, virtual assistants, and more, all working on a project-by-project basis. This allows you to access a wider pool of talent than you might have in your local area and keeps your overhead low.
• Staffing Agencies: Partnering with a staffing agency can be a great way to find qualified candidates, especially for specialized roles. They handle the resume screening and initial interview stages, saving you valuable time and resources.

The Small and Medium-Sized Business (SMB): Taking the First Steps Up

Congratulations! You've made significant progress and established a foothold. Now it's time to solidify your foundation and start growing. While some level of flexibility is still important, you might also need some permanent staff to provide stability and ensure continuity. Here's how staffing strategies can evolve:

• Building a Core Team: As your business needs become more defined, you'll want to start hiring full-time employees for essential roles. This could include positions in sales, marketing, customer service, and operations.
• Temp-to-Perm: This is a great strategy for positions where you're unsure about the long-term need. You can bring someone on as a temporary worker and then transition them to a permanent role if they prove to be a good fit.
• Managed Service Providers (MSPs): If you lack the in-house expertise to handle certain functions like IT support or payroll, MSPs can be a lifesaver. They provide a team of experts to manage those tasks, freeing you to focus on your core business.

The Enterprise: Scaling the Peak

You've reached the summit, or at least a high plateau, with a well-established team and complex operations. Now it's about maintaining your position and continuing to innovate. Here, attracting and retaining top talent becomes paramount. Here are some advanced staffing solutions to consider:

• Recruitment Process Outsourcing (RPO): This involves outsourcing your entire recruitment process to a specialized firm. They will handle everything from job postings and candidate screening to interview coordination and offer negotiation.
• Executive Search: When you need to fill high-level leadership positions, a dedicated executive search firm can be invaluable. They have the network and expertise to identify and attract the best candidates in your industry.
• Employer Branding: In today's competitive talent market, it's crucial to have a strong employer brand. This means creating a workplace culture that attracts and retains top performers. Consider offering competitive benefits packages, fostering a positive work environment, and promoting your company as a great place to work.

Beyond the Solutions: Building a Winning Team

Regardless of the stage you're at, remember that staffing solutions are just tools. The real key to success lies in building a winning team. Here are some additional tips:

• Focus on Culture Fit: Skills are important, but cultural fit is equally crucial. Look for candidates who share your company values and will thrive in your work environment.
• Invest in Training and Development: Employees who feel valued and have opportunities to grow are more likely to stay with your company. Invest in training programs and provide opportunities for professional development.
• Open Communication and Feedback: Create a culture where open communication is encouraged. This means giving and receiving feedback regularly, fostering a sense of A sense of trust and psychological safety where employees feel comfortable sharing ideas and concerns without fear of retribution. This will lead to a more engaged and productive workforce.

Building a Diverse Team:

Diversity of thought and experience is essential for innovation and success. Actively seek out candidates from different backgrounds and perspectives. This can lead to more creative solutions and a stronger understanding of your target market.

The Future of Staffing

The world of work is constantly evolving, and staffing solutions are keeping pace. Here are some trends to keep an eye on:

• The Rise of the Gig Economy: The freelance and contract workforce is growing rapidly. Businesses are increasingly turning to temporary workers and independent contractors to access specialized skills and scale their workforce up or down as needed.
• Remote Work: Technological advancements have made it easier than ever for employees to work remotely. This opens up a wider talent pool for businesses and allows employees to achieve a better work-life balance.
• Artificial Intelligence (AI) in Recruitment: AI is being used to automate tasks like resume screening and candidate matching. This can help to streamline the recruitment process and identify qualified candidates more quickly.

Conclusion
Building a successful team is a journey, not a destination. By understanding the different staffing solutions available at each stage of your business growth, you can make informed decisions about how to attract, develop, and retain the best talent. Remember, it's not just about finding the right people; it's about creating an environment where they can thrive and contribute to your company's success. So, whether you're a startup just starting out or an established enterprise looking to scale new heights, the right staffing strategy can be your secret weapon for conquering any mountain.
PENNEP has developed and implemented the crucial changes that required to grow in this ever changing environment. For more information on how you can build a strong workforce for your continued success contact PENNEP - Trusted Staffing Agency from Philadelphia, Pennsylvania, USA.