Electric vehicle stocks have diverged this year. On the one hand, we have Tesla whose shares have surged to a record high, giving it a market cap of over $1.4 trillion, and making it the eighth-biggest company in the world. 

Many EV companies, on the other hand, have imploded, with most of them fighting for survival. Some, like Fisker, Proterra, ELMS, Bollinger, and Lordstown Motors, have already filed for bankruptcy. Here are some top EV companies that could file for bankruptcy in the near term as their cash runs out. 

Faraday Future (FFIE)

Faraday Future is one of the top EV companies that may not survive for so long after spending $3 billion in capital in the last few years. 

The most recent results showed that the company’s business continued losing millions of dollars. Its revenue in the last quarter came in at $9 million, while its net loss came in at over $77 million. The nine-month loss was over $234 million.

Therefore, a company losing all this money can only survive if it has a solid balance sheet. Unfortunately, Faraday does not have this luxury, since it ended the last quarter with about $79 million in current assets. Its cash and restricted cash stood at $7.3 million. 

Faraday Future has secured $30 million financing, which will not be enough to fund its most ambitious plans. For example, it is working to launch mass-market vehicles priced at between $20,000 and $50,000. 

Therefore, there is a likelihood that the company will run out of money soon as its business continues. This explains why the Faraday Future stock price has crashed by over 95% this year.

Canoo (GOEV)

Canoo is another vulnerable EV stock that may not be around for so long. Like Faraday, the Canoo stock price has crashed by over 97% this year, bringing its market value to about $13 million. 

Canoo has a large market opportunity, which explains why it has received orders worth over $3 billion from companies like Walmart, NASA, and USPS. The challenge, however, is that the company is running out of cash and is already furloughing employees. 

The most recent results showed that the company had just $5.7 million in cash and short-term investments. These are tiny numbers for a company that is still losing substantial sums of money for all vehicles it sells. 

Mullen Automotive (MULN)

Mullen Automotive stock price has crashed by over 90% this year, dropping its valuation to about $13 million. Its market cap is significantly smaller than what it spent in acquisitions a few years ago. It acquired ELMS for $240 million and $180 it spent buying a 605 stake in Bollinger Motors. 

Like Canoo and Faraday, its biggest issue is that it is burning a lot of money and is taking too long recognizing revenue. In its most recent nine-month results, the company recorded no revenues and made a loss of over $300 million. Its deferred revenue was about $16 million for the nine-month period.

Mullen Automotive has limited cash on its balance sheet, even assuming that the company receives the $250 million it says it has received. 

There are many other EV companies that may not survive in the long term because of their balance sheet woes. Some of the other notable names are Xos Trucks, Dragonfly Energy, Lightning eMotors, Phoenix Motor, and Micromobility.

Some analysts believe that even some well-known EV brands like Rivian and Lucid are only surviving because of their wealthy backers. Rivian has received funding from Volkswagen, while Saudi Arabia backs Lucid.

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The US fraud case against Indian billionaire Gautam Adani has sparked significant legal debate, as prosecutors in Brooklyn aim to build a strong case using documents that may reveal extensive bribery activities.

However, while the case appears to have critical evidence backing it, experts believe the likelihood of Adani being extradited to stand trial in the United States remains slim due to complex international legal challenges.

Adani’s legal team has firmly denied the accusations, calling them “baseless,” and the case is expected to unfold over a lengthy period, with key legal hurdles yet to be addressed.

Indictment against Gautam Adani

In November, federal prosecutors in Brooklyn unsealed an indictment against Gautam Adani, his nephew Sagar Adani, and another Adani Group executive, accusing them of bribing Indian officials to encourage the purchase of electricity produced by Adani Green Energy, a subsidiary of the Adani Group conglomerate.

Additionally, the charges allege that the Adani Group misled US investors about its anti-corruption practices, providing false assurances while allegedly engaging in bribery.

The charges leveled against the Adani executives include securities fraud and conspiracy, with five individuals tied to Azure Power Global, a US-listed company, also facing charges for allegedly violating the US Foreign Corrupt Practices Act (FCPA).

Azure Power, in a statement, confirmed its cooperation with the investigation, claiming that the individuals charged were no longer with the company.

Despite these allegations, the Adani Group has vowed to vigorously pursue all legal avenues to contest the accusations, describing them as unfounded.

While Gautam Adani has not been taken into custody, the case has drawn significant attention in India.

He was publicly seen at least twice after the indictment, including attending a major event on December 9, alongside Indian Prime Minister Narendra Modi.

These appearances have fueled speculation regarding Adani’s status and the potential for legal proceedings, especially as his business empire faces increasing scrutiny.

‘Bribe notes’

The indictment outlines some key evidence that could strengthen the US prosecution’s case, including “bribe notes” found on Sagar Adani’s mobile phone.

Prosecutors also revealed that Gautam Adani emailed himself a copy of a search warrant and grand jury subpoena served to his nephew on March 17, 2023, marking these electronic records as potentially critical pieces of evidence.

Legal experts suggest these materials could play a significant role in demonstrating that both Adani and his nephew were aware of the misleading statements provided to investors, especially regarding the company’s anti-corruption efforts.

Stephen Reynolds, a former federal prosecutor, explained that such corroborating evidence strengthens the prosecution’s position.

“The allegations include references to corroborating material, and that always provides for a stronger case,” Reynolds told Reuters.

Significant legal challenge for prosecution

However, the defense is likely to argue that Gautam Adani had no direct involvement in the misleading statements about the company’s anti-bribery policies, which could provide a significant legal challenge for the prosecution.

In addition to this, securing live testimony from witnesses in India could prove difficult for US prosecutors.

Mark Cohen, a former federal prosecutor, highlighted the potential complications of obtaining witness testimony in India, especially if it could implicate local officials in corruption.

This could require diplomatic intervention from the Indian government, which has shown reluctance in the past to assist with cases that might reflect negatively on its officials.

India’s foreign ministry has already indicated that it has not received any formal extradition request from the US regarding Adani, describing the issue as a matter between private firms and the US Justice Department.

Despite these complications, the US prosecutors are pressing forward.

Drew Rolle, deputy chief of the business and securities fraud section at the Brooklyn US Attorney’s office, emphasized the importance of holding foreign companies accountable when they operate in US capital markets.

“It’s not only a bribery case, it’s an important securities enforcement case,” he stated at a conference on December 6.

Rolle noted that his office has successfully convicted foreign officials in similar cases, underscoring the US government’s commitment to protecting the integrity of its financial markets.

As the case develops, questions remain regarding the likelihood of Adani’s extradition. Legal experts agree that although the evidence against him may be compelling, political and diplomatic barriers could prevent the billionaire from facing trial in the US anytime soon.

For now, the Adani Group remains resolute in its defense, while US prosecutors continue to press their case, signaling that the legal battle could be prolonged and contentious.

With the legal and diplomatic hurdles ahead, the saga surrounding Gautam Adani’s alleged fraud and bribery charges is likely to continue drawing significant attention, not just in India, but also across global financial markets.

As this case unfolds, the broader implications for international corporate governance and the enforcement of foreign bribery laws will be closely watched.

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Bitcoin’s meteoric rise has captured global attention as it surged past $106,000, marking an unprecedented 50% gain since the US election earlier this month.

The cryptocurrency market has been electrified by speculation that President-elect Donald Trump’s administration will adopt a friendlier stance toward digital assets.

Analysts at Reuters suggest this rally is buoyed by expectations of a pro-crypto regulatory environment and the potential creation of a bitcoin strategic reserve, similar to the United States’ strategic oil reserve.

With the total cryptocurrency market value surpassing $3.8 trillion, questions arise over the sustainability of this extraordinary rally.

Bitcoin rallies 50% post-election

Bitcoin price reached $106,533, before settling at $104,462, a 3.2% gain on Monday.

This significant milestone comes as Trump’s administration signals a shift in the nation’s cryptocurrency strategy.

In his recent remarks, Trump hinted at establishing a Bitcoin strategic reserve, a move aimed at reinforcing US dominance in the digital asset space.

This announcement coincides with the increasing global adoption of cryptocurrencies.

The United States already holds nearly 200,000 Bitcoins, valued at over $20 billion.

Other nations, including China, the UK, Bhutan, and El Salvador, have also amassed substantial bitcoin reserves, further underscoring the growing role of crypto in national financial strategies.

Global interest in crypto grows

The prospect of a Bitcoin reserve is not unique to the United States.

Countries like Russia have shown interest in diversifying their reserves to reduce reliance on the US dollar, which President Vladimir Putin criticized as being wielded for political leverage.

Cryptocurrencies, particularly Bitcoin, are seen as an alternative asset immune to direct control by any single government.

However, the Federal Reserve Chairman Jerome Powell remains skeptical.

Jerome Powell recently compared Bitcoin to gold, highlighting its speculative nature.

Despite this, the momentum in the crypto market suggests a broader acceptance of Bitcoin as a store of value.

Crypto-friendly policies boost market sentiment

The anticipation of crypto-friendly policies has played a crucial role in the current rally. Trump’s pro-crypto stance during his campaign included promises to make the United States a “crypto capital.”

His administration has already taken steps to deliver on these pledges, such as appointing David Sacks, a former PayPal executive, as the White House czar for artificial intelligence and cryptocurrencies.

Moreover, Trump is expected to nominate Paul Atkins, a pro-crypto attorney, to lead the Securities and Exchange Commission.

The inclusion of MicroStrategy, a company with substantial bitcoin holdings, in the Nasdaq-100 Index has further fuelled optimism.

Shares of MicroStrategy have surged six-fold this year, reaching a market value of $94 billion. Analysts believe its inclusion will attract significant inflows, amplifying the company’s ability to purchase more Bitcoin.

Can the rally sustain its momentum?

Despite the bullish sentiment, analysts caution that the establishment of a Bitcoin reserve could take considerable time and may face regulatory hurdles.

Some market watchers also point out that the rapid price increase might lead to profit-taking, resulting in temporary pullbacks.

Nevertheless, the broader market appears optimistic. Bitcoin’s year-to-date gains of 192% reflect its growing appeal among both retail and institutional investors.

With Trump’s administration poised to introduce measures favoring digital assets, the question remains: Can Bitcoin sustain its record-breaking rally, or will it face a reality check as regulatory complexities come into play?

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Tilray Brands stock price has been in a strong downward trend this year and is now sitting near its all-time low as concerns about the cannabis industry remains. It has imploded by over 48% this year, bringing its valuation to about $1 billion.

Other cannabis companies have also crashed this year. The AdvisorShares Pure US Cannabis ETF (MSOS) has crashed by over 46% this year, lowering its assets to about $480 million. Some of the other top laggards are companies like Green Thumb Industries, Truelive Cannabis, and Curaleaf Holdings.

US cannabis regulations hope fall

The main reason why Tilray Brands and other cannabis stock prices have plunged is that hopes of cannabis legislation have remained elusive.

These hopes dimmed after the last general election, in which Republicans won the White House, the House of Representatives, and the Senate.

Historically, Republicans have been relatively conservative on cannabis issues, with many of them being opposed to it. Therefore, the odds are that a cannabis bill that has been in deliberations will not see the end of the day.

The bill aimed to bring a federal regulation on cannabis in line with the Supreme Court ruling. In particular, this bill was focused on banking since most cannabis companies still don’t have access to banking services in the US. Most large banks seek to avoid issues like money laundering and drug trafficking rules.

There are also odds that the much-anticipated cannabis reclassification into a less harmful drug will not happen. This reclassification was championed by Joe Biden and other Democrats earlier this year. 

To be clear: Tilray Brands does not have a large presence in the United States. Therefore, its stock has crashed because the company’s hopes of entering the lucrative market have faded as regulations have remained elusive.

Read more: Tilray Brands stock analysis: attractive risk/reward?

TLRY is not just a cannabis company

Most notably, Tilray is no longer just a pureplay cannabis company as it has entered the alcoholic beverages industry. The most recent results showed that Tilray’s beverage alcohol revenue rose by 132% to $56 million in the last quarter. 

This revenue growth was because the company has made several acquisitions in the past few months. It bought several brands from AB InBev and others from Molson Coors. Its cannabis revenue was $61 million, while its distribution and wellness revenue was $68.1 million and $14.8 million. 

Therefore, this diversification makes it one of the best cannabis-related companies to invest in because a slowdown in the sector will be offset by the alcohol business. 

Most importantly, the company has started to narrow its losses. Its most recent results showed that its net loss was $34 million, an improvement from $55 million in the same quarter in 2023. 

Tilray Brands stock price analysis

The daily chart shows that the TLRY share price has been in a strong bearish trend in the past few months. It has recently dropped below the important support level at $1.45, its lowest level on October 10.

The stock has remained below all moving averages, while the MACD indicator has moved below the zero line. The Relative Strength Index (RSI) has remained below the oversold level at 30.

Therefore, the path of the least resistance for Tilray is downwards, with the next point to watch being at $1. In the long term, however, there is a likelihood that the stock will recover as investors buy the dip and as its diversification strategy pays off. If this happens, the next target to watch will be at $1.45. 

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