On November 13th local time, Faraday Future released its third quarter financial report for 2023, showing that the company achieved revenue for the first time in the quarter, with a total of $551000 in car sales revenue. So far, Faraday has delivered 7 FF 91 2.0 Futurist Alliances to users in the future.
The news immediately drove the future stock of Faraday up, and the final closing price was set at $0.876, with a daily increase of over 10%.
Although it has achieved a breakthrough in stages, Faraday still has some distance from reaching a breakeven point in the future, with a net loss of $78 million in the third quarter. However, compared to a net loss of over $100 million in the same period last year, the magnitude of the loss for the quarter has narrowed.
The official introduction stated that the main reason for the narrowing of net loss was a decrease in operating expenses, as well as gains from changes in fair value of notes payable and warrant liabilities, which were offset by the non cash settlement of convertible notes recorded in this quarter.
As of now, Faraday Future has delivered 7 FF 91 2.0 Futurist Alliances, with the fourth vehicle being owned by the company's founder Jia Yueting himself. At the end of October, Faraday Future announced that the company's subsequent deliveries will accelerate, with plans to deliver 5 new cars in November and an increase in deliveries to 2 vehicles per week starting from the last week of the month.
It is worth noting that the delivery of Faraday's first future product is divided into three stages. In the first stage, the first batch of users will fully pay the vehicle fee in order to book and receive vehicle usage training; In the second stage, the first batch of car owners obtain the vehicles. It is not until the third stage that comprehensive delivery after capacity ramp up will be achieved. At present, the company is still in the second stage.
According to Faraday's current factory improvement and climbing plans for the future, its goal for next year is to produce approximately 1000 cars. The company expects to begin a new phase of delivery by the end of the first quarter of 2024, which is the comprehensive delivery of vehicles to users. However, the smooth implementation of this plan depends on obtaining the necessary financing and the ability and stability of the supply chain.
Previously, Faraday had planned to deliver the first batch of mass-produced Futurist Alliance limited edition 300 vehicles starting in April this year, but due to various reasons, they were repeatedly delayed. Jia Yueting posted on social media that the company has encountered problems with insufficient industrialization and financing capabilities. It wasn't until August that Faraday Future finally delivered its first car nine years after its establishment.
Multiple ticket jumps may damage Faraday's future brand credibility, with the company's stock price previously consistently below $1. According to the US stock market system, companies with stock prices below $1 face the risk of delisting and bankruptcy.
Jia Yueting stated in an open letter on the evening of June 21st that the future development opportunities for Faraday lie in breaking the funding bottleneck through mergers and expansions. In order to maintain his listing position, Jia Yueting announced that he will reverse split the shares to boost trading sentiment. At the same time, in order to alleviate operational pressure, Jia Yueting will continue to raise 300 million US dollars.
Faraday received a financing commitment of $105 million at the end of June, led by existing investors ATW Partners Funds and participated by Senyun International. This funding commitment will support the continued production and delivery of Faraday's future FF 91 electric vehicles, and help the company achieve its long-term strategic goals.
According to the product plan previously released by Faraday, the company will launch models including the FF 91 series, FF 81 series, and FF 71 series within the next five years. However, Jia Yueting stated that the brand will never launch products below 500000 yuan.