Faraday Future, the maker of the long-delayed FF91 EV, reaffirmed its commitment to raising funds, saying on Tuesday that its operating losses had more than quadrupled in the second quarter.
The company posted an operating loss of $137 million in the second quarter, compared to $28 million a year earlier. Overall, its second quarter financial report paints a bleak picture.
Still lacking a sales machine and with no near-term prospects for generating revenue, the company has warned several times this year that it is running out of money.
The cash-strapped company now has even less cash, with roughly $121 million at the end of the second quarter, down from $505 million at the start of the year.
Faraday said in a statement that it “anticipates that additional funds will be required in early September 2022 to continue operations and will need to raise additional financing throughout the remainder of 2022 and beyond 2022 to support production growth. FF 91 to generate earnings to put the company on a path of declining cash flow.”
Lack of funding has been just one obstacle delayed the start from the beleaguered automaker’s first car. Faraday’s future has been threatened many times since its founding in 2014, but the company has remained steadfast in its vision and will go public in July 2021. Through a SPAC merger with Property Solutions Acquisition Group.
Just in the second quarter, the company removed founder and former CEO Yueting Jia as an executive officer, began proceedings to oust the former lieutenant governor of Nevada from its board, and went into receivership. Oversight of the US Department of Justicestemming from an SEC investigation into whether Faraday misled investors.
It also avoided delisting from the Nasdaq by filing its due 2021 annual report and first-quarter 2022 financial results in May. The fact that Faraday reported its second quarter results should encourage investors.
“Importantly, we also updated our financial statements and restored compliance with NASDAQ listing requirements,” CEO Carsten Breitfeld said Tuesday. “Fundraising is ongoing and we currently expect to deliver the FF 91 to customers in the third or fourth quarter of 2022.”
The company said it had 399 “fully refundable, non-binding, paid deposits” for FF91 as of June 30. The new production start and first deliveries of the FF91 have been pushed back to the third or fourth quarter of 2022.
Despite the turmoil, Faraday has big plans for the future, including a target to open a factory in China in the middle of the decade build two more models: the FF 81 sedan and the FF 71 smart last-mile delivery vehicle.