AutoBeta(AutoBeta.net)08/17 Report--

On August 16, Faraday Future released its second-quarter 2022 earnings report, showing an operating loss of $286 million in the first half of the year, including a loss of $137 million in the second quarter; a net loss of $295 million in the first half, including a loss of $142 million in the second quarter. As of June 30, 2022, Faraday Future's total assets were approximately $588 million, including $121 million in cash.

Affected by the earnings report, Faraday's future shares fell 16.85% on the same day, closing at $2.32/share, with a total market value of $701 million.

Faraday Future stated that the loss in financial performance was primarily due to an increase in engineering, design and testing ("ED&T") services as the Company rehired suppliers and made significant purchases for ED&T services to advance the development of FF 91, as well as headcount and staff-related expenses. At the same time, it said it expects to continue to incur significant operating losses for the foreseeable future because the company will continue to incur expenses before generating meaningful revenue. As for the delivery time of FF 91 electric vehicle, which is concerned by the outside world, it indicates that it will be delivered to customers at the end of the third quarter or the fourth quarter of 2022.

On August 15, Faraday Future announced that it had successfully signed a final agreement for a new financing mechanism, with a financing plan of up to $600 million having reached $52 million and actively negotiating additional financing with a number of investors. FF Global CEO Bi Fukang said he was pleased to see the company obtain new financing and sign relevant framework agreements to obtain considerable additional funding. "The company is working hard to complete this capital raising process to raise enough new funding to launch the FF 91 electric vehicle."

It is worth noting that last month, Faraday Future said in a document that delivery of the FF91 electric SUV, which was scheduled to go on sale this month, was delayed until "the third or fourth quarter of 2022" due to funding constraints. "Additional cash is required to commercialise the launch of FF 91 and additional capital is currently being sought to fund its operations until December 31, 2022." Any challenges in supplier cooperation, delays in capacity or workforce upgrades at the company's Hanford, California manufacturing plant, rising material prices and continued disruptions in the global supply chain could further increase the additional funding requirements for the launch of the FF 91 series, it said. In addition to the FF 91 series, significant additional funding is needed to fund the operation, research, development and design of future vehicles. It hopes to raise $325 million by the end of the year.

At present, although FF91 mass production has been delayed, its financing speed is still very fast. However, from Faraday's future earnings report, its current situation is still not optimistic. As of August 9,2022, Faraday's future cash balance was $52.2 million and restricted cash was $1.6 million, according to financial data. Faraday Future's total liabilities as of June 30, 2022 were approximately $287 million, compared to approximately $340 million as of December 31, 2021. From 2019 to 2021, Farah's future net losses were $142 million,$147 million and $517 million respectively. It is not difficult to see from these data that the company's cash balance is not abundant, and losses are normal, and it has no hematopoietic capacity. Even if the financing is as high as 600 million yuan, according to the previous "burning money" speed, the financing of 600 million US dollars cannot last long.

In general, it is particularly important that FF91 can be delivered on time. After all, it is not always easy for the market to raise funds. If the delivery time is delayed again, the situation will be even more difficult for Faraday in the future, leaving little time for him.

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