After procrastination, Faraday Future (FF) finally released its 2023 annual report after the US stock market closed on May 28th local time. In 2023, Faraday's future full year revenue was $800000, with a net loss of $432 million, and a net loss of $602 million in 2022.
Faraday Future stated in its annual report that as of December 31, 2023, the company had sold a total of 4 FF 91 Futurists and rented out 6 of them. Due to various reasons, the company may never be able to achieve or maintain profitability.
May never be able to achieve or maintain profitability
According to the company's financial report, Faraday's revenue for 2023 is $800000, with a sales cost of $43 million. Both revenue and sales cost were zero for the same period last year; The operating loss was 286 million US dollars, compared to 437 million US dollars in the same period last year; The net loss was $432 million, compared to a net loss of $602 million in the same period last year.
According to the financial report, as of December 31, 2023, the company sold a total of 4 FF 91 Futurists and rented out 6 of them. At the same time, the company has received 303 booking orders and letters of intent in the United States and China, but as these orders and letters of intent do not have legal effect, there is no guarantee that they can be converted into valid orders.
Faraday Future stated that although FF has started delivering the FF 91 series for the first time, there are risks such as insufficient demand for the FF 91 series and its related services, vehicle service and warranty costs, intensified competition, macroeconomic environmental challenges, and regulatory changes, FF may never be able to achieve or maintain profitability.
In addition, the annual report also mentioned that due to the current market conditions and funding levels, the company will withdraw its 2024 production target guidance.
Compared to the booming new energy vehicle market in China, Faraday has not entered the public eye for a long time in the future. After all, whether it's a technology war or a price war, Ferrari, which only sold a few cars throughout the year, really has no way to get a share of the future.
Unexpectedly, with no positive news, within a week from May 13th to May 17th, Faraday's future stock price rose from $0.048 per share to a maximum of $3.9 per share, with an amplitude of 8380%. Even considering the pullback in the past week, as of the closing of the US stock market on May 28th, Faraday's future stock price in May has risen by over 2500%.
Previously, Nasdaq had issued several delisting warnings to Faraday Future. On April 18th, Faraday Future was unable to submit its 2023 financial report on time, and NASDAQ believed that it did not comply with the listing rules. On April 24th, Nasdaq issued another notice to Faraday Future, stating that its stock price had exceeded $0.1 per share for 10 consecutive trading days, and Nasdaq made a delisting decision. Previously, the accounting law firm hired by Faraday in the future has also announced that it will end its cooperation with FF after submitting its Q1 2024 financial report.
On April 27th, Faraday Future announced that the company plans to appeal its delisting decision and request a hearing before May 1st.
On May 29th, Jia Yueting stated on Weibo that Nasdaq approved FF's application to continue trading today.
Although Faraday's future stock price has rebounded and given it a breathing opportunity, facing the dismal performance of four car sales and six car rentals last year, Faraday's future is still shrouded in clouds.
"Xuanhuan" Car Making Road
In 2014, Jia Yueting announced his joining in the manufacturing of new energy vehicles and established the Faraday Future, with the first model FF91 launched in 2014. But it was not until April 2023 that Faraday Future announced the production of its first mass-produced electric vehicle, the FF 91 Futurism, at FF ieFactory California in Hanford, California.
The future financing path of Faraday is highly dramatic. In 2015, LeEco invested tens of millions of dollars as an angel investment in Faraday's future. But soon, due to LeEco's financial crisis, Faraday also faced project shutdowns due to insufficient funds in the future.
In 2018, Faraday Future received an additional $854 million investment from Evergrande Health, a subsidiary of Evergrande Group, which resulted in Evergrande Health receiving a 32% stake in Faraday Future. Subsequently, both sides shook hands and made peace in court. After experiencing ups and downs, Evergrande and Faraday have become a pair of difficult brothers in the automotive industry.
In addition to the company, the recent actions of Jia Yueting, the founder of Faraday Future, have also attracted a lot of attention from the market.
Under the stimulation of Zhou Hongyi, the leader of the "Red Shirt Sect", Jia Yueting announced on May 7th that he would commercialize his personal IP, repay debts, and help FF build cars. He also stated that he is seriously considering joining Matthias as the co CEO and sharing responsibilities
Faraday Future quickly issued a statement "slapping" Jia Yueting in the face.
Faraday Future Statement states that Jia Yueting posted a video related to the company on social media as an individual rather than a company executive. The statement in the video was not approved by the company, and any such statement should not be considered as an act of the company.
Moreover, the statement also mentioned that the company's board of directors will not consider appointing him as a co CEO at present.
Due to previous debt restructuring, Jia Yueting hardly holds any shares in Faraday Future, and as the founder of the company, he is not the CEO of the company.