Source: Gelonghui

After the US stock market on May 28, electric vehicle startups$Faraday Future Intelligent Electric Inc. (FFIE.US)$Financial results for the fourth fiscal quarter and the full year of 2023 were announced.

According to the report, Faraday will achieve first-year revenue in fiscal year 2023, with revenue of US$800,000; at the same time, net loss was reduced from US$602 million in FY2022 to US$432 million.

Despite significant improvements in losses, Faraday Future said in the financial report that due to current market conditions and current capital levels, the company will withdraw its 2024 production target guidelines.

Affected by the news, the company's stock price once plummeted by more than 65% in today's US stock market.

Last year's revenue was $800,000

Specifically, Faraday's future revenue in 2023 is 800,000 US dollars, and sales costs are 43 million US dollars, while in 2022, both figures are zero. This is mainly because the company only began delivering vehicles in the third quarter of 2023.

In response, Faraday Future explained that the company began producing FF 91 Futurist models in March 2023 and began delivering them to customers in August last year. As of December 31, 2023, it had sold 4 FF 91 Futurists and leased 6 cars.

In terms of losses, Faraday's future business loss in 2023 was US$286 million, which is narrower than US$437 million in 2022; net loss also improved from US$602 million the previous year to US$432 million. This is mainly due to a significant reduction in operating expenses, from $437 million in 2022 to $244 million in 2023. However, this cost improvement is mainly due to the company completing product development and transitioning to the stage where sales are achieved through manufacturing and production, thereby reducing R&D expenses.

As of December 31, 2023, Faraday's total future assets were $531 million, not much different from the previous year; total liabilities were reduced to $302 million. At the same time, the company's net cash used for operating activities fell from US$383 million in 2022 to US$278 million, and capital expenditure also fell sharply, from US$123 million in 2022 to US$31 million.

It is worth noting that Faraday's future is currently mired in a quagmire of financial constraints. As of December 31, 2023, the company's cash balance was $4 million, including $2 million in restricted cash, a sharp decrease from the previous year's $17 million. As of May 23, 2024, the Company's cash position was approximately $5 million, including $2 million in restricted cash.

In the financial report, Faraday Future also pointed out that the company may face unforeseen expenses or encounter difficulties and delays in delivering the FF 91 series electric vehicles. All of these factors may cause the company to be unable to generate enough revenue to maintain operations. Although delivery of the FF 91 series has begun, the company may never be able to achieve or maintain profits due to multiple factors such as insufficient demand, vehicle service and warranty costs, increased competition, macroeconomic environmental challenges, and regulatory changes.

Allowed to continue trading

Previously, Faraday received several delisting warnings from NASDAQ in the future due to reasons such as failure to submit quarterly financial reports in a timely manner, failure to hold a shareholders' meeting for 12 months after listing, and closing prices below $0.10 for ten consecutive trading days.

On the 28th, a message published on the company's official website indicated that on May 21, the company received a written notice from NASDAQ and faced delisting due to failure to promptly submit Form 10-Q for the quarterly report up to March 31, 2024.

However, Faraday Future said that although the company's further suspension request to NASDAQ has not been resolved, the company expects its securities to continue to trade normally on NASDAQ while the hearing process is pending.

This morning, Faraday's future founder Jia Yueting also said on social platforms that FF will release the “FF China-US Automobile Industry Bridge Strategy” in a month. Empower the $300,000 FF91 core technology to Volkswagen models through the full value chain. Today, NASDAQ approved FF's application to continue trading.

Notably, Faraday's future share price has continued to decline since the beginning of the year due to ongoing cash shortages and supply chain issues. However, in the middle of this month, the company's stock price experienced a wave of sharp increases.

Since the US government announced that it will increase tariffs on Chinese electric vehicles and other products, Faraday Future is the only electric vehicle securities that will not be affected by the ban, attracting a large amount of speculation. On May 15, the company's stock price rose 147.37% to close at $0.71 per share.

On the same day, Jia Yueting wrote an article explaining this.

Jia Yueting believes that this “highlights the role of FF as a 'China-US automobile bridge'.” He said, “My personal IP and I are making continuous efforts to build a bridge of friendship between China and the US and an economic bridge between China and the US, and are communicating with our partners on the Sino-US automobile bridge strategy.”

At the same time, he also announced that he will launch the commercialization process of personal IP and achieve profits as soon as possible. The funds obtained will be partially used to repay debts and partly to support the car building business to guarantee the company's basic operations.

edit/lambor