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Faraday Future (FF), which has been warned of delisting for several consecutive years, released its second quarter 2024 financial report on August 15.

According to the financial report, in the second quarter of this year, Faraday Future achieved revenue of $293,000, and its operating loss narrowed to $50,609,000 from $55,979,000 in the same period last year, and its net loss also narrowed to $109 million year-on-year. In the first half of the year, Faraday Future achieved a total revenue of $295,000, and its net loss dropped from $270 million in the same period last year to $157 million.

Although the losses seem to be narrowing, Faraday Future's overall financial situation is still worrying. As of June 30, the company's total book assets were approximately US$458 million, total liabilities were approximately US$309 million, and net assets were US$149 million.

In the face of this financial report, Faraday Future is relatively optimistic, saying that based on current business needs and financial conditions, the company has adjusted its operations and employee size, and will continue to promote production and vehicle delivery.

It is worth mentioning that just two days before the release of this financial report, Faraday Future delivered its 13th FF 91, and the owner was Gao Wei, a senior FF employee and head of global communications and community sales. This year is already the tenth year since Faraday Future was founded, which means that it took ten years to deliver 13 cars, which is really regrettable.

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13 vehicles delivered in 10 years

Faraday Future founder Jia Yueting's dream of building a car originated in 2014.TeslaAfter that, Boss Jia decided to build cars and founded Faraday Future in California, USA. He returned to China at the end of the year to announce the LeTV SEE plan and officially lay out the car industry.

In order to build LeEco's super ecosystem and realize his dream of making cars, Jia Yueting started a "burning money" mode. In the early days, he personally invested more than 10 billion yuan in the automotive ecosystem. Later, due to the break in LeEco's capital chain, Faraday Future also faced financial pressure. However, he did not give up, but bet more heavily on making cars, hoping to make a comeback.

In January 2017, Faraday Future officially released its first mass-produced model, FF91, at the CES in Las Vegas, USA. At that time, Jia Yueting said that FF91 would be comparable toFerrari、Maybach、Rolls-Royceas well asBentleyModels of super luxury brands such as the Audi A5 and Audi A5 are expected to be mass-produced and delivered in 2018.

However, after the LeTV crisis broke out, Jia Yueting's personal debt crisis dragged down Faraday Future's car manufacturing progress, and FF91 had to postpone mass production from 2018 to 2019, and from 2019 to 2020, and it was still postponed several times in 2022.

Until February 2023, Faraday Future, which had delayed its delivery several times, announced that it would start mass production at the end of March and deliver to the first batch of users before the end of April. In May of the same year, Faraday Future held the "FF 91 & Faraday Future 2.0 Final Release" event, and Jia Yueting announced that Faraday Future's first mass-produced car FF91 would enter the delivery stage.

Then on August 14 last year, Faraday Future announced that it had officially delivered the first FF 91 2.0 Futurist Alliance to its first top user, and held a delivery ceremony for the first top user of the new car on August 12. The FF 91 2.0 Futurist Alliance is priced at US$309,000, and the first new car delivery user is the American luxury car dealer "Private Collection Motors".

The delivery of the first FF 91 means that Faraday Future's products have finally begun to enter the market since Jia Yueting started making cars in 2014.However, starting deliveries is only the first hurdle Faraday Future has to overcome. Subsequently, it failed to snatch the "cake" from super luxury brands such as Ferrari, Maybach, and Rolls-Royce as Jia Yueting had expected.

Data shows that since the official start of delivery in August 2023, FF 91 has only delivered 4 new cars that year, and another 6 new cars have been leased. In the first half of this year, Faraday Future only delivered 2 new cars. One of the buyers is Motev, a luxury transportation service company founded by Oscar winner Morgan Freeman, and the other is an individual investor.

Including the one that was recently delivered to internal employee Gao Wei, Faraday Future has only delivered 13 cars in the past ten years, including three this year. It can be seen that despite a lot of efforts, Jia Yueting is still struggling in this dream of car manufacturing that has lasted for ten years.

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How long can you hold on?

In fact, in order to realize his dream of making cars, Jia Yueting not only "burned money" but also brought in a lot of helpers and tried his best to expand funds.

For example, in 2018, Evergrande Health announced that it had acquired Faraday Future for HK$6.7467 billion and became the largest shareholder. The two parties reached an agreement that Evergrande would pay a total investment of US$2 billion to Faraday Future in three installments in 2018, 2019 and 2020.

After receiving support from Evergrande, Faraday Future bought a plot of land in the Wanqingsha Bonded Port Processing and Manufacturing Zone in Nansha District for 364 million yuan to produce FF91. However, the two sides later had a conflict over the issue of control, and Jia Yueting and Evergrande "broke up", and the Nansha factory became the property of Evergrande.

In 2019, Faraday Future and Internet company The9 announced the establishment of a new energy vehicle joint venture, planning to settle and build a factory in the Sharqin Industrial Zone in Hohhot, but the cooperation later came to nothing.

In addition, Jia Yueting also brought in a lot of financing for Faraday Future.According to incomplete statistics, Faraday Future's total financing amount reached about 6.5 billion US dollars before it generated any revenue. It has to be said that Jia Yueting is quite good at "painting the cake" for investors.

In addition, Faraday Future has successfully landed in the capital market. On July 22, 2021, Faraday Future officially went public on Nasdaq through a merger with PSAC. However, its "performance" after listing was not good, and it received "delisting warnings" from the Nasdaq Stock Exchange many times.

For example, at the end of last year, Faraday Future announced that the company failed to maintain the minimum closing bid price, and its stock price was below $1 for 30 consecutive trading days. According to the requirements of Nasdaq's listing rules, if the company fails to re-comply with the minimum bid price requirement before June 25, 2024, and is not eligible for an additional compliance period at that time, Nasdaq will issue a delisting notice to the company.

In June this year, due to the continued plunge in its stock price, its delisting alarm sounded again. Faraday Future had to announce that its board of directors had proposed a reverse stock split to increase the company's stock price to reduce the risk of being delisted by Nasdaq.

Combined with Faraday Future’s latest second-quarter financial report data, the company’s financial difficulties are still worsening. It is no wonder that Boss Jia has become active again recently.He had previously disclosed in May that the commercialization income of his personal IP would be completely transparent and would all be used to repay debts and help FF build cars.

Jia Yueting even said bluntly: "I hope to make some money as soon as possible, part of which will be used to pay off debts, and part of which will be used to save the company and subsidize car manufacturing, so as to support FF's basic operations and give investors and shareholders confidence."

After ten years of manufacturing, it has only sold 13 cars. Its financial situation is not optimistic and it still lacks user trust. Can Faraday Future still find a continuous and stable source of funds to support itself to "survive"?

Author | Li Li

Source | CarVisibility