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Seven new cars will be delivered in 9 years! FF is still losing money after its first income.

2024-05-30 Update From: AutoBeta autobeta NAV: AutoBeta > News >


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Faraday Future (hereinafter referred to as "FF") announced its results for the third quarter of 2023 on November 13, US Eastern time. FF generated revenue for the first time, with car sales totaling $551000 (4.02 million yuan), according to financial data. FF said it was an important milestone for the company to generate revenue for the first time in the third quarter. According to FF, FF invested a total of about $3 billion (21.9 billion yuan) to build the FF 91 2.0 FuturistAlliance model, and it is clear that the revenue of $551000 is "negligible" compared with the huge investment.


At the same time, FF has a long way to go to break even. FF reported a net loss of $78 million (569 million yuan) during the reporting period, compared with a net loss of $119.9 million in the same period last year, narrowing the net loss compared with the same period last year. FF said the narrowing of the net loss was offset by the non-cash settlement of convertible notes recorded in the quarter due to lower operating expenses and changes in the fair value of notes payable and warrants liabilities.

So far, FF has delivered seven FF 91 2.0 Futurist Alliance to new users, of which the fourth is owned by FF founder Jia Yueting himself. In October, FF delivered FF 91 2.0 Futurist Alliance to well-known users, including Le Mans 24 hour champion and famous racing host Justin Bell. FF said it planned to deliver five new cars in November and increase delivery to two a week from the last week of November.


In May this year, FF held the "final release of FF91 & Faraday Future 2.0" event, at which founder Jia Yueting announced that the FF91, FF's first production car, will enter the delivery phase. At the launch, FF 91 2.0 Futurist Alliance is available, and the new car is available in three models: F 91 2.0, FF 91 2.0 futurist version and FF 91 2.0 futurist alliance version. Of these, the FF 91 2.0 Futurist Alliance sells for $309000 (about 2.2 million yuan), has a global limit of 300 units, accepts full payment from the announced price, and reopens online orders. In addition, the booking amount for FF 91 2.0 Futurist Alliance Edition is 50, 000 yuan, and the booking amount for FF 91 2.0 Futurist Edition and FF 91 2.0 Futurist Edition is 20, 000 yuan each.


According to the delivery plan, the delivery of FF 91 is divided into three phases, of which May 31 is the first stage of delivery, which is only for the "industry expert FPO" (futurist product officer). The industry expert FPO needs to pay the full cost of the FF 91 vehicle in order to book the vehicle and receive vehicle use training, that is to say, FF has not yet started the real delivery, only to "urge" the first batch of users to pay in full. In the second stage, the first batch of car owners will get the vehicles, and the full delivery of the production capacity will not be realized until the third stage.


FF 91 is still in the second phase, and FF points out that since the second phase of co-creation delivery was successfully launched on August 12, 2023, its goal is to expand the production scale of FF 91 and begin the third phase of delivery by the end of the first quarter of 2024, that is, full delivery of vehicles to users. In the letter to shareholders, FF said bluntly that according to the current factory improvement and climbing plan, FF aims to achieve production of about 1000 vehicles next year, but only if the required capital, the capacity and stability of the supply chain and the necessary permits are obtained. At the same time, FF stressed that its goal is to achieve operating cash flow balance as soon as possible by 2025.

In fact, since the mass production of new cars, FF 91 has skipped tickets many times. In June this year, Jia Yueting publicly apologized because the delivery of the second phase of FF 91 was postponed to August. As for the reason for the delay, Jia Yueting said it was due to the lack of industrialization capacity and financing capacity of the FF team, but at that time Jia Yueting still released "good news" in a high profile-"as long as there is reasonable capital investment, I have the confidence to quickly improve the overall ability of the new and old industrialization teams of FF."


The repeated ticket skipping of the first model, coupled with the fact that FF often raises new financing requirements at the same time, has damaged the credibility of the FF brand. At present, the share price of FF is still hovering below $1, and according to the regulations of the US capital market, if the share price of a listed company is less than $1 per share, if the company is warned within 90 days of the warning, if it still cannot take corresponding measures to save itself to change its share price, it will be announced to stop stock trading.

Or affected by the above news, as of the 13th US Eastern time, FF shares rose, and the final closing price was fixed at 0.876 US dollars, up more than 10% on the day. FF said in the financial report that from an operational point of view, FF is in the most mature period in history. Although the share price is still falling sharply, FF is taking steps to try to stop and reverse the trend. In recent months, FF has seen a large number of FTD data, which may indicate illegal naked short selling, and FF has hired ShareIntel to provide information on potential market manipulation and illegal short selling to take action accordingly.


According to FF's early product plan, FF will launch models including FF 91 series, FF 81 series and FF 71 series in the next five years, and the brand model will not be less than 500000 yuan. It should be noted that FF has been building cars for 9 years and has delivered only 7 new cars so far. obviously, for the current FF, it is more important to achieve large-scale delivery of FF 91 as soon as possible. According to FF's latest delivery plan, it aims to produce about 1000 vehicles next year, and a new phase of delivery is expected to begin at the end of the first quarter of 2024, that is, full delivery to users.

Judging from the current market performance of FF, FF still has to pay more efforts to achieve full delivery of vehicles, and the most important thing is whether FF can obtain the investment of investors, after all, capital is indispensable for car manufacturers. Since FF started building cars, it has invested about $3 billion (21.9 billion yuan) to begin its current delivery, and even though it has started delivery, FF has not received a positive response from the capital markets.

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