AutoBeta(AutoBeta.net)08/02 Report--

On July 31st, Faraday Future (hereinafter referred to as "FF") released its first quarter 2024 results. FF operating expenses were $22.9 million in the first quarter, compared with $95.8 million in the same period, operating losses were $43.6 million, compared with $95.8 million in the same period, and net expenses were $14.7 million, compared with $103 million in the same period, compared with improved cash flow from operating activities, according to financial data.

At the same time, FF reiterated in its financial statements that FF once again complied with Nasdaq's requirements for timely submission of financial statements. In April, FF announced that it had received a delisting warning letter from the Nasdaq Stock Exchange because the company closed at 10 cents or less for 10 consecutive trading days. In June, FF announced that it would continue to list on NASDAQ. It should be noted that although FF continues to be listed on NASDAQ, its funding problems remain unresolved. As of March 31, 2024, FF had book assets of $499.9 million, liabilities of $298.4 million and net assets of $201.5 million, according to the financial report.

As one of the earliest new car-building forces, FF has been building cars for about 10 years and has spent a lot of money, but it has only one FF91 model. To make matters worse, there is no market for new cars after their launch. So far, FF has delivered only 12 new cars, 12 of which were delivered in June this year. From the point of view of the launch and delivery of new cars, FF has been building cars for as long as 10 years, which is essentially not much different from "PPT cars". By contrast, it took only about three years for Xiaomi to announce the launch of its first mass production model.

However, even though the quantity delivered by FF is small, Jia Yueting still believes in his dream of building a car. "FF is considering launching a second brand under the 'China-US Automotive Industry Bridge Strategy', which will empower FF's high-value solutions and functions to Volkswagen in the future, so that more individual investor users can enjoy our smart technology luxury," Jia said on June 13.

Jia Yueting said through a video on July 31 that since the real establishment of FF, there have been two brands, one is FF, the other is LeSee,FF mainly hit the spire market, the remarkable feature of the spire market is that it is impossible to expand on a large scale, while FF, as an Internet company, the core is to obtain a large amount of driving data and user scale. If there is enough quantity to do the second brand, it can have an all-round impact. Jia Yueting further explained that if you want to be a second brand, you will choose to do the tower base market or even the tower waist market, and pointed out that if you want to compete, you must first improve your own cost control ability, and at the same time, you have to use an innovative model. The biggest worry is not whether it can be done or not, but how to compete with traditional manufacturers.

When talking about building cars, Jia Yueting pointed out that FF will not compete with BYD, but will focus on the United States and other markets, competing with automakers including GM, Ford, Mercedes-Benz, BMW and Volkswagen, especially low-end products launched by Volkswagen. In his view, the automobile industry is not a strong network effect industry, the brand concentration of the automobile industry will be higher and higher, but not too little, at least the United States can tolerate the next five brands, the FF will be 1/5.

Jia Yueting, founder of FF, explained why FF was founded in a video on social media today. Jia Yueting said that the establishment of FF is based on the judgment of future trends, and said: "AI EV is the biggest commercial opportunity in the AI era."

Or affected by the earnings announcement, FF shares closed at $0.350, up 10.76%, with a total market capitalization of $155 million.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat