Faraday Future, the maker of the long-delayed FF91 EV, has stepped up its fundraising commitment again while reporting Tuesday that its second-quarter operating loss more than quadrupled.
The company posted an operating loss of $137 million in the second quarter, compared with $28 million in the same period a year earlier. Overall, its second-quarter financials paint a bad picture.
With still no cars for sale and little prospect of short-term revenue generation, the company has warned several times this year that it is running out of cash.
The longtime cash-strapped company had even less cash, reporting about $121 million at the end of the second quarter, compared with $505 million it reported at the start of the year.
Faraday said in a statement that it “expects that it will need additional capital by early September 2022 to continue operations and will also need to raise additional financing for the remainder of 2022 and after 2022 to support increased production of FF 91 to generate revenue to put the Company on the path to breakeven cash flow. “
Lack of funding is just one of the obstacles that Delay the launch the automaker’s first car to be despised. Faraday’s future has repeatedly been in jeopardy since its founding in 2014, but the company has persevered in its vision and launched as a public company in July 2021. through the merger of SPAC with the Real Estate Solutions Acquisition Team.
In the second quarter alone, the company removed founder and former CEO Yueting Jia as chief executive officer, initiating proceedings to force the former Governor of Nevada off its board and fall into the supervision of the US Department of Justicestemming from an SEC investigation into whether Faraday misled investors.
It also avoided being delisted from Nasdaq by submitting its overdue 2021 annual report and Q1 2022 financial results in May. Faraday’s release of second-quarter results should encourage investors. .
“It is important that we have also updated our financial statements and regained compliance with NASDAQ listing requirements,” Chief Executive Officer Carsten Breitfeld said in a statement on Tuesday. “Funding efforts are underway and we currently expect to deliver the FF 91 to customers in Q3 or Q4 2022.”
The company said it had 399 “full refundable, non-binding, paid deposits” for the FF91 as of June 30. The FF91’s new production start date and first delivery date has been pushed to the 3rd or 4th quarter of 2022.
Despite the turmoil, Faraday has big plans for the future, including goals opened a factory in China in the middle of the decade to build two more models: an FF 81 sedan and a smart last-mile delivery vehicle FF 71.
