Faraday Future reports Q2 earnings – FF 91 deliveries expected by end of 2022

Entertainment

Faraday Future, the California-based EV startup, reported Q2 earnings today with some exciting announcements and key financial updates.

Since being founded in 2014, Faraday Future has had a vision of disrupting the auto industry. Yet so far, we have not seen much from Faraday as the company has pushed back the launch of its flagship EV model, the FF 91. Can the EV startup turn things around in the second half of 2022?

Last month, Electrek reported Faraday Future was delaying the FF 91 to seek out additional capital. Then, earlier this month, Faraday executed a nonbinding term sheet with several major investors.

The filing noted convertible notes with a principal amount of up to $600 million, which Faraday could use to launch the FF91. Meanwhile, Faraday Future’s CEO Dr. Carsten Breitfeld updates us on the situation on its Q2 earnings, claiming:

Fundraising efforts are underway, and we currently expect to deliver the FF 91 to customers in the third of fourth quarter of 2022.

At the same time, the company had several critical updates on its manufacturing process in Q2. For one thing, Breitfeld mentions:

We made encouraging progress during the second quarter at our newly renamed “FF ieFactory California,” our manufacturing plant in Hanford, California. Mechanical, electrical, and plumbing systems are in place, and equipment installation and construction in final vehicle manufacturing areas is nearing completion.

However, much of Faraday Future’s progress will depend upon its ability to raise funds. Let’s take a look at Faraday Future’s financials on its Q2 earnings.

Faraday-Futures-Q2-earnings-ff-91-gallery
Faraday FF 91 Source: Faraday Futures

A closer look at Faraday Futures Q2 earnings financials

Earlier this month, it was reported Faraday Future would need to raise additional funds to launch the FF 91 and continue operations through the end of the year.

Like many EV startups right now, Faraday is facing a decades-old dilemma. Starting an auto company is a challenge. It takes a ton of capital to build these massive facilities and equip them to produce vehicles.

In its Q2 earnings, Faraday Future reported an operating loss of around $137 million, up close to 390% from 2021. Faraday notes the increase is from higher spending on engineering, design, and testing (ED&T), in addition to a larger workforce to progress the FF 91.

Overall, Faraday Future posted a net loss of about $142 million, almost tripled from 2021. As Faraday Future progresses with its flagship model, losses are expected.

However, the big question investors will be looking for going forward will be capital. Faraday Future ended Q2 with $121 million in cash. But, as of August 9, Faraday’s cash balance was $52.2 million.

The company is projecting cash use of around $368 million through the end of 2022 to launch the FF 91. To do so, the EV startup looks to raise $325 million with efforts underway.

On top of this, Faraday expects they will need additional funds by September 2022 to continue operations. Not to mention, FF will require even more to ramp production later this year.

Altogether, Faraday Future’s accumulated deficit is about $3.2 billion at the end of the second quarter.


Subscribe to Electrek on YouTube for exclusive videos and subscribe to the podcast.

Articles You May Like

Elon Musk Deploys Starlink Service in Iran Amid Country-Wide Internet Restrictions
China’s CATL, a Tesla supplier, considers expanding battery swapping business overseas
USMNT has no answer for Japan in friendly loss
Gragson wins 4th straight to open Xfinity playoffs
Chancellor denies gambling with economy as pound sinks to near historic lows