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The question of when the FF91, the first model of Faraday, the electric car company founded by Jia Yueting, will be mass produced has always been the focus of the industry. Yesterday, Faraday's major shareholder FF Top Holding LLC (FF Top) and FFIE officially signed a non-binding letter of intent on convertible term loan financing. It is understood that this round of financing includes advanced guaranteed convertible notes with a potential amount of up to 600 million US dollars (about 4 billion yuan). In other words, Faraday will get a maximum of 4 billion yuan in the future, which should guarantee the delivery of FF91.

It is worth noting that on July 25th Faraday Future said in a document that the delivery of the FF91 Electric SUV, originally scheduled for launch this month, had been postponed to the third or fourth quarter of 2022. It says it needs additional cash to commercialize FF 91 and is seeking to raise additional capital to fund its operations until December 31, 2022. Unexpectedly, a few days later, Faraday ushered in a turnaround in the future.

Today, Faraday Future's official Weibo also released a video about the latest development of the Hanford manufacturing plant in California, and said that it will name the Hanford plant FF ieFactory California, and will use world-class technology and state-of-the-art automated manufacturing technology to promote mass production of FF91. Faraday Future Global CEO Dr. Bi Fukang also said in the video that the factory's body production line, electrophoresis system, painting oven and related transmission facilities are all in place to prepare for mass production. At the same time, the continuous production of quasi-production vehicles for final test verification will pave the way for subsequent mass production efforts to ensure that the FF 91 project is delivered as scheduled in the third or fourth quarter of 2022.

According to relevant data, the FF 91 is the first model of Faraday in the future. it is a luxury electric vehicle priced at more than 100000 US dollars. It only takes 2.39 seconds to accelerate at 0-60 mph, can output 1050 horsepower, can travel 300 + miles on a single charge, and has a range of 700km under NEDC conditions. FF91 made its debut as early as 2017, but then Faraday ran into financial problems in the future due to the personal debt problems of founder Jia Yueting. Although it led Evergrande to introduce money in 2018, the progress of the first FF91 model also stalled because the two sides broke up in disagreement over control issues. It was not until February this year that the FF91 quasi-production car was officially put off the line. The delivery time of the FF91 is also constantly delayed. Faraday has said many times in the future that it plans to deliver the first model FF91 in July this year, but it has not been ready for delivery.

If you can get 4 billion yuan of funds this time, it may be a big improvement for the delivery of FF91. However, from the current point of view, FF has no hematopoietic capacity, loss is the norm. It is also crucial to make good use of the money. According to future data released by Faraday, the company made a net loss of $142 million, $147 million and $517 million respectively from 2019 to 2021, and a net loss of $153 million in the first quarter of 2022, compared with a net loss of about $76 million in the same period last year. "the company is expected to continue to generate significant operating losses for the foreseeable future and will continue to incur expenses until material revenue is generated," FF said in its quarterly report. At the end of the first quarter, FF had only $277 million in paper cash and cash equivalents, with total assets of about $706 million. If we follow the previous speed of "burning money", 4 billion will not last long.

On the question of when Faraday will be profitable in the future, FF Global CEO Bifukang has said that the company is expected to be profitable in 2025. FF is expected to have a 3 per cent market share in the luxury car market, with sales of the FF 91 reaching 40, 000 in the next two years and 270000 in five years. However, according to Faraday's financial results in the first quarter of 2022, capital is still its biggest problem. Even if FF 91 is sold in mass production, it is difficult to immediately convert it into cash flow.

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