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Lose 432 million dollars! Faraday Future: may not be profitable

2024-06-25 Update From: AutoBeta NAV: AutoBeta > News >

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AutoBeta(AutoBeta.net)05/29 Report--

Today, Faraday will release its financial results for the fourth quarter of 2023 and the whole year of 2023. Faraday's total future revenue last year was $784000, compared with a net loss of $432 million last year, compared with a net loss of $602 million in 2022, according to the report.

However, it is worth mentioning that Faraday's future operating loss last year was $286 million, and as of December 31, 2023, Faraday's future total assets were $531 million and total liabilities were $302 million. As of May 23, 2024, Faraday's future cash position was $5 million, including $2 million in restricted cash.

From the financial report, it is not difficult to see that Faraday's current situation in the future, funds are very tight. In response, the official said in the financial report: although Faraday has begun to deliver FF 91 products in the future, insufficient demand for this model and related services, coupled with the pressure on vehicle service and warranty costs, increased market competition, deterioration of the macroeconomic environment, changes in the regulatory environment and other risk factors, may continue to suffer huge losses in the future, so profits may never be realized and maintained.

In addition, financial information also shows that as of December 31, 2023, Faraday has sold a total of 4 FF 91 Futurist and rented 6 FF 91 Futurist. Officials pointed out that although 303 booking orders and expressions of intent were received in the United States and China, there was no guarantee that they could be converted into valid orders because they had no legal effect. In view of the current market conditions and the current level of funds, the 2024 production target guidance will be withdrawn.

Founder Jia Yueting did not have any response to Faraday's future financial information.

However, in a video released early this morning, Jia Yueting revealed that an earlier warning from Nasdaq had been dealt with and that Nasdaq had approved Faraday's application to continue trading in the future, which Jia Yueting said showed the market's recognition of the future prospects of FF. Faraday announced last month that it had received a warning from Nasdaq to delist its shares after closing at $0.10 or less for 10 consecutive trading days. At that time, Jia Yueting said that he had submitted a complaint to Nasdaq on May 1, hoping to maintain its listing qualification through rectification measures.

In the near future, Faraday's stock will continue to grow due to the influence of Jia Yueting's official announcement that he will start the commercialization of personal IP and that the United States will impose new tariffs on Chinese imports. In mid-May, the White House reported that from this year, it would quadruple the tariff on imported electric vehicles, raising the tax rate from 25% to 100%. In the future, Faraday, as a Chinese background electric car concept stock developed in the United States, is not likely to be affected by the ban, which will naturally attract a lot of capital speculation. At the same time, Jia Yueting, the future founder of Faraday, also released a video announcing the commercialization of personal IP. He also said that all the personal income gained through the commercialization of his personal IP will be used to repay debts and help FF build cars, repay debts, build cars, repay debts and return to China as soon as possible.

Although Jia Yueting has good intentions, it is still a challenge to revive Faraday's future simply by commercializing personal IP. After all, as pointed out in the official financial report, the intensification of market competition and the deterioration of the macroeconomic environment will bring great obstacles to Faraday's future. The market performance after the listing of FF91 is undoubtedly very unsatisfactory, and it is not easy to open the market. Because from the positioning and price of FF91, FF91 positioning luxury car, a vehicle as high as 2 million yuan is not the main battlefield of mass consumption after all, and it is difficult for consumers to be willing to pay for it. With the increasingly fierce competition in the auto market, the time left for FF is also very tight.

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