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12 million dollars! Faraday will sell factories to make a living in the future!

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

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AutoBeta(AutoBeta.net)11/29 Report--

Recently, Faraday announced its results for the third quarter of this year. According to the financial report, FF's third-quarter auto sales revenue was $551000 and its third-quarter net loss was $78.046 million, a decrease of 34.89% compared with the same period last year and a loss of $119.9 million in the same period last year. Although the FF achieved its first revenue, Faraday is still losing money in the future. Data show that as of the end of the third quarter, Faraday's future cash and restricted cash were only $8.567 million, including $1.853 million in restricted cash.

In terms of car delivery, so far, seven FF 91 2.0 Futurist Alliance have been delivered to new users. On the financing side, FF said it raised a total of $61.8 million (about $447 million) in the third quarter through convertible notes, equity credit lines (ELOC) and ATM financing.

It is worth noting that there was a cash payment of US $12 million (about 86.8692 million yuan) in the third quarter results. Officials say the $12 million in cash comes mainly from non-dilutive equity released through the sale of Faraday's future manufacturing plant in Hanford, California, which will be used for significant improvements to the plant and infrastructure development. With regard to the sale of the factory, officials said: we did not sell any physical assets, including equipment, in this transaction. Now it's just a new landlord, and the factory continues to operate normally.

For the future, Faraday said: the third phase of delivery will begin at the end of the first quarter of 2024, and the company aims to produce about 1000 vehicles next year. Of course, for the achievement of the goal, officials say the premise is that the required capital, the capacity and stability of the supply chain and the necessary permits can be obtained.

Relevant data show that: the manufacturing plant in Hanford, California is the only future Faraday car factory, the factory covers an area of about 93000 square meters, invested a huge amount of construction. It is now sold for $12 million and rented back at a rent of $1 million a year. Many netizens are confused about Faraday's future operation. Jia Yueting said that the purpose of selling the factory is to obtain funds to solve the problem of Faraday's shortage of funds. In fact, Jia Yueting not only sold Faraday's future factory, there were earlier media reports that Jia Yueting Faraday's future headquarters building in Los Angeles was sold and then rented back for use.

As we all know, there has been a shortage of funds since Faraday announced the construction of cars in the future. A few years ago, because of financial difficulties in the future, the car-building project came to a standstill, and the mass production of FF 91 also jumped many times. Of course, in order to solve the financial problem, Jia Yueting also used various methods. At first, he also found Evergrande to cooperate hand in hand, but then Evergrande announced its withdrawal because of the problem of dominance. Later, in order to solve the debt crisis, Jia Yueting also offset all his equity to all creditors in the form of personal bankruptcy.

This time, Jia Yueting sold the headquarters building and factory, although it can solve the urgent need of Faraday's future fund shortage for a while, but in the long run, it still can not completely solve the problem of Faraday's future fund shortage.

Building cars requires a lot of capital inflows, and Faraday needs a steady stream of funds if it is to survive in the future. To this end, Jia Yueting also turned his attention to the Middle East market. On November 23rd, FF announced that it has signed a strategic cooperation agreement with two companies in the Middle East to carry out operations in the Middle East from 2024, and plans to launch the FF 91 2.0 Futurist aiFalcon limited edition model in the Middle East market in 2024. Today, Faraday Future also announced that it had received more than 300 non-binding deposit-free bookings for the limited edition of FF 91 2.0 Futurist aiFalcon within 72 hours of the FF Middle East Strategy launch in Abu Dhabi.

All in all, it is not easy for FF to get to where it is today, but the funding problem is a big problem after all. In addition, as the market becomes more and more fierce, FF will also face fierce challenges, and how far it can go in the future is still unknown.

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