Faraday stock tanks as EV maker searches for investment

Yahoo Finance Live anchors discuss the decline in stock for EV maker Faraday Future amid a $150-$175 million investment search.

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BRAD SMITH: Shares of Faraday Future Intelligent Electric, you haven't heard about this one a ton, but we're going to talk about it this morning because it's in focus. It's getting hit hard after the company announced that they would acquire an additional $150 to $175 million from new and existing investors in order to start building its first electric SUVs by the end of March. The CEO saying the company has letters of intent for a significant portion of the financing. The shares are down, like, more than 90% year to date.

BRIAN SOZZI: [INAUDIBLE] $0.37 stock, but they've made nothing, Brad. I went to go re-familiarize myself with what their first car is supposed to be, their EV at some point next year, when that comes out. I believe it's April. I just saw a Reuters story cross a little while ago. It looks like an Apple mouse with some tires on it. There it is, actually. You can see it right there. Tell me that does not look like an Apple mouse.

BRAD SMITH: It does.

BRIAN SOZZI: An Apple mouse.

BRAD SMITH: It looks like an Apple mouse.

BRIAN SOZZI: An Apple mouse.

BRAD SMITH: Well, a lot of the EVs are starting to run a little similar to each other in design, at least, but--

BRIAN SOZZI: It's really boring. Brad, I just fell asleep when I looked at that thing.

BRAD SMITH: [LAUGHS] I honestly do not know a ton about this company's cars, the vehicles that it intends to put on the market--

BRIAN SOZZI: Look, the plug's in the back. That's kind of cool, though.

BRAD SMITH: Well, yeah. But that's also going to-- I don't know-- it's going to be interesting when people go to try and charge it.

BRIAN SOZZI: But just the fact the stock is trading at $0.37, it's another just indication that here's an electric vehicle that maybe doesn't make it. Just because you come out with a flashy concept car and you are in that electric market doesn't mean you will have success. Not everybody is going to be the next Tesla.

BRAD SMITH: All right, $0.48 stock. That's enough. We're talking about it for today.