Faraday Future Intelligent Electric Inc. ( FFIE ) shares are experiencing a rise Thursday on what appears to be continued momentum from a strategic stake acquisition.

What To Know: Faraday Future revealed Wednesday that it received a 10% stake in Grow Fandor. The stake was transferred from the personal holdings of Faraday Future’s chief product user ecosystem officer YT Jia. The transfer is seen as part of a larger effort to foster collaboration between the two companies, with Faraday Future aiming to leverage Grow Fandor’s strengths in potential future ventures.

In the statement, Faraday Future CEO Matthias Aydt expressed enthusiasm for the stake transfer, noting that it paves the way for potential synergies between the two organizations. The companies are reportedly exploring how to combine their expertise, possibly hinting at new developments or product offerings down the line.

Faraday Future shares jumped on the news and closed the day up more than 5% on above-average trading volume. The continued momentum in shares on Tuesday appears to be retail driven.

In May, shares surged 367.5% in a single day, driven by meme traders capitalizing on its high short interest, which currently stands at 4.37 million shares or 35.3% of the float, according to Benzinga Pro.

Faraday Future continued to see elevated retail interest following a 1-for-40 reverse stock split in August, which reduced the float to just over 12 million shares. Faraday future is also considered a micro cap stock with a market capitalization of around $30 million. The high volatility in the name appears to be the main source of ongoing retail investor enthusiasm.

See Also: Palantir’s Stake In EV Maker Faraday Future Touch Nearly 9% After Converting Receivables Into Equity

FFIE Price Action: Faraday Future shares were up by 7.76% at $2.64 at the time of writing, according to Benzinga Pro.

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