Faraday Future Intelligent Electric Inc (NASDAQ:FFIE) has emerged as a stock to watch, with its recent price surge capturing the attention of both investors and market analysts.

At last check on Friday, the Los Angeles-based company was up 33%, trading at $2.20 per share — a far cry from its 52-week high of $117.36.

Still, just three weeks ago, Faraday Future faced a potential delisting from Nasdaq. Today, it's enjoying a remarkable rally.

The Surge: A Closer Look

Faraday Future shares skyrocketed 52.6% in pre-market trading, and a staggering 134% the day before.

This surge comes at a critical juncture, as Faraday Future was in danger of price non-compliance. The company has until June 25 to regain compliance.

The Faraday Future rally is also emblematic of how retail investors can influence a stock's movement via social media platforms.

With nearly 86% of its stock sold short, Faraday Future is experiencing significant short-term price movements, akin to the "meme stock" phenomenon seen with stocks like GameStop Corp (NYSE:GME) and AMC Entertainment Holdings Inc (NYSE:AMC).

Also Read: What's Going On With Faraday Future Intelligent Electric Stock?

Despite the stock's impressive performance, Faraday Future is facing financial challenges. The company recently faced eviction from its headquarters and is actively seeking funding to sustain its operations.

Some view the rally as a short-term speculative play driven by social media hype, while others see it as a sign of underlying strength in the company, leading to mixed market sentiment.

Technical Analysis

Faraday Future's stock is trading above its 5, 20, and 50-day moving averages.

Chart: Benzinga Pro

However, analysts advise caution as the Relative Strength Index (RSI) indicates the stock could soon become overbought. The Bollinger Bands also suggest Faraday Future is in a buying zone.

Retail investor interest, social media buzz, and short squeeze potential are driving the complex phenomenon of Faraday Future's stock surge.

While the rally presents opportunities for short-term gains, investors should carefully consider the company's financial challenges and the risk of delisting.

Image: Faraday Future