Faraday Future Skyrockets 17.52%—Is This the Dawn of a Legal and Product-Driven Rebound?

Summary
• Faraday Future (FFAI) surged 17.52% intraday to $3.22, defying broader EV sector weakness.
• The company announced legal action against suspected illegal short sellers and unveiled the FX Super One with 10,000 pre-orders.
• Strategic partnership with HabitTrade and $105M financing round fuel investor optimism.

Faraday Future’s explosive 17.52% intraday rally on July 24, 2025, marked a dramatic reversal from its 2023 lows of $0.831. This surge, driven by aggressive legal countermeasures, product momentum, and capital infusion, has ignited speculation about a potential turnaround. With the stock trading at $3.22—up from $2.88 intraday lows—the market is betting on a narrative of stabilization and innovation.

Legal Countermeasures and Product Momentum Fuel FFAI’s Surge
Faraday Future’s 17.52% intraday rally was catalyzed by a dual-pronged strategy: legal action against suspected illegal short sellers and the successful launch of its FX Super One. The company issued a legal letter targeting market manipulation, reinforcing its 'Stockholders First' philosophy. Simultaneously, the FX Super One’s 10,000 pre-orders and strategic partnership with HabitTrade signaled renewed investor confidence. These actions, combined with a $105M financing round, created a narrative of stabilization and innovation, attracting both retail and institutional buyers.

EV Sector Volatility Amid FFAI’s Surge as Tesla Trails with -8.79% Drop
While FFAI’s stock soared, Tesla (TSLA) fell 8.79% in the same period, reflecting divergent trajectories within the EV sector. FFAI’s rally was driven by company-specific catalysts—legal action, product momentum, and financing—rather than broad sector trends. Meanwhile, Tesla’s decline mirrored broader market concerns over EV demand and regulatory risks. FFAI’s performance highlights how niche, event-driven plays can outperform sector leaders in volatile markets.

Capitalizing on FFAI’s Volatility: Options and Technicals for the Week Ahead
• RSI: 68.32 (overbought)
• MACD: 0.280 (bullish), Signal Line: 0.203 (positive), Histogram: 0.077 (rising)
• Bollinger Bands: Upper $2.74, Middle $1.95, Lower $1.16
• 30D MA: $1.80 (below current price)

FFAI’s technicals suggest short-term bullish momentum, with RSI near overbought territory and a strong MACD crossover. Key levels to watch: $3.50 (strike price for near-term options) and $3.61 (intraday high). Two top options for aggressive traders are:

• FFAI20250801C3.5 (Call, $3.50 strike, Aug 1 expiration):
- IV Ratio: 219.85% (high)
- Delta: 0.557 (moderate sensitivity)IV Ratio indicates high volatility expectations; Delta shows moderate price sensitivity; Gamma suggests rapid delta changes with price swings.
• FFAI20250815C3.5 (Call, $3.50 strike, Aug 15 expiration):
- IV Ratio: 210.38% (high)IV Ratio signals high volatility; Delta shows moderate sensitivity; Gamma indicates strong delta responsiveness.FFAI hits $3.61. Aggressive bulls may consider FFAI20250801C3.5 for a quick move or FFAI20250815C3.5 for a sustained rally.

Backtest Faraday Future Stock Performance
The backtest of FFAI's performance after an 18% intraday surge shows favorable results, with win rates and returns indicating positive short-to-medium-term gains. The 3-Day win rate is 54.55%, the 10-Day win rate is 70.45%, and the 30-Day win rate is 84.09%. The maximum return during the backtest period was 44.61%, which occurred on day 59 after the surge.

Act Now: FFAI’s Momentum Could Define the Week
FFAI’s 17.52% intraday surge reflects a mix of strategic execution and speculative fervor. While the company’s legal actions and product momentum are bullish, the stock’s overbought RSI and narrow Bollinger Bands suggest caution. Traders should monitor the $3.50 strike price and the 200D MA (currently unavailable), as a break above $3.61 could validate the rally. Meanwhile, Tesla (TSLA)’s -8.79% drop underscores sector volatility. Aggressive buyers may target FFAI20250801C3.5 for a short-term play, while longer-term bulls should watch the 8/15 contract. Act now—FFAI’s momentum could fade if key levels fail to hold.