- Company Transformed Business to Production and
Revenue-Generation Phase with FF 91 2.0 EV in 2023.
- Realized Revenue for 2023 and Reduced Operating Loss, Cash Used
In Operating Activities, while improving Composition of Balance
Sheet as Compared With Fiscal 2022.
- Company Committed to increased production and deliveries while
maintaining financial discipline.
- Continues Pursuit of Additional Significant Strategic Investors
to Drive Future Growth.
Faraday Future Intelligent Electric Inc. (Nasdaq: FFIE) (“FF”,
“Faraday Future”, or “Company”), a California-based global shared
intelligent electric mobility ecosystem company, today announced
its financial results for its fourth quarter and full year ended
December 31, 2023.
RESULTS FOR FOURTH QUARTER 2023 AND FULL YEAR 2023
For fiscal 2023, FF produced its first year of revenue as well
as a reduced operating loss, and cash used in operating activities,
while improving the composition of its balance sheet, as compared
with fiscal 2022. These results were achieved through major cost
reductions and cost discipline.
FF reported revenue of $0.8 million for 2023 and cost of goods
sold of $43 million, compared with no revenue and cost of goods
sold in 2022. This reflects that the Company only began delivering
vehicles in the third quarter 2023. Loss from operations was $286
million for 2023, as compared to a loss from operations of $437
million for 2022. The change was due to a significant reduction in
operating expenses which registered $244 million in 2023 compared
to $437 million in 2022. The improvement in operating expenses for
the year was primarily due to lower research and development
expenses as the Company completed product development and
transitioned to fulfilling sales through manufacturing and
production. Net loss improved to $432 million for 2023, as compared
to $602 million for 2022.
Total assets on December 31, 2023, were $531 million, compared
to $529 million as of December 31, 2022. Total liabilities were
$302 million, versus $328 million on December 31, 2022.
Net cash used in operating activities for 2023 was $278 million
compared to $383 million in 2022. Capital expenditures were $31
million for 2023 compared to $123 million for 2022.
Cash balance at December 31, 2023, was $4 million, including
restricted cash of $2 million. This compares to cash of $17 million
at December 31, 2022. As of May 23, 2024, the Company’s cash
position was approximately $5 million, which includes restricted
cash of $2 million.
To support future growth the Company continues to pursue
additional significant strategic investors to support future
growth. It also is considering equipment- and IP-backed financing
to potentially reduce reliance on dilutive funding. The Company
does not plan to issue additional shares unless and until the
Company receives shareholder approval to increase total authorized
share count.
“2023 was a milestone year for FF. We transitioned to a phase of
growth that focuses on production and revenue generation,
establishing FF’s position in the ultra-luxury and high-performance
EV market,” said Matthias Aydt, Global CEO of Faraday Future.
“Looking forward, I am excited by the future as we remain steadfast
in our pursuit of growth through efficiency and the new markets we
entered in 2023. We remain dedicated to elevating both our product
strength and stockholder value.”
KEY COMPANY HIGHLIGHTS DURING 2023
FF launched a leasing program with Luxury Lease Partners,
obtained a Bureau of Automotive Repair license, activated a home
charging installation program, and rolled out a public charging
program. These initiatives are designed to provide a seamless and
customer-focused experience for our users.
The Company also announced potential entry into the Middle East
market late last year. This included strategic cooperation
agreements with Master Investment Group and Siraj Holding LLC.
Entry into the Middle East would add a third leg to the Company’s
geographic strategy that includes the U.S. and China.
FF also agreed to a collaboration with the Abu Dhabi Investment
Office (ADIO) to bring generative AI and advanced intelligent
electric vehicle capabilities to the UAE’s Smart and Autonomous
Vehicles Industry (SAVI) cluster.
OUTLOOK
Given current market conditions and current levels of funding
the Company is withdrawing its production target guidance for
2024.
EARNINGS WEBCAST
Faraday Future management will host a webcast today, May 28,
2024, at 8:00pm Eastern time (5:00pm Pacific time). Interested
investors and other parties can listen to a webcast of the
conference call by logging onto the Investor Relations section of
the Company's website at https://investors.ff.com/.
ABOUT FARADAY FUTURE
FF is the pioneer of the Ultimate Intelligent TechLuxury ultra
spire market in the intelligent EV era, and a disruptor of the
traditional ultra-luxury car civilization. FF is not just an EV
company, but also a software-driven company of intelligent internet
AI product.
FORWARD LOOKING STATEMENTS
This press release includes “forward looking statements” within
the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995. When used in this
press release, the words “estimates,” “projected,” “expects,”
“anticipates,” “forecasts,” “plans,” “intends,” “believes,”
“seeks,” “may,” “will,” “should,” “future,” “propose” and
variations of these words or similar expressions (or the negative
versions of such words or expressions) are intended to identify
forward-looking statements. These forward-looking statements, which
include statements regarding the Company’s planned financings,
growth strategy in the U.S., China and the Middle East, and the
Company’s leasing program, are not guarantees of future
performance, conditions or results, and involve a number of known
and unknown risks, uncertainties, assumptions and other important
factors, many of which are outside the Company’s control, that
could cause actual results or outcomes to differ materially from
those discussed in the forward-looking statements.
Important factors, among others, that may affect actual results
or outcomes include, among others: the Company’s ability to
continue as a going concern and improve its liquidity and financial
position; the Company’s ability to pay its outstanding obligations;
the Company's ability to remediate its material weaknesses in
internal control over financial reporting and the risks related to
the restatement of previously issued consolidated financial
statements; the Company’s limited operating history and the
significant barriers to growth it faces; the Company’s history of
losses and expectation of continued losses; the success of the
Company’s payroll expense reduction plan; the Company’s ability to
execute on its plans to develop and market its vehicles and the
timing of these development programs; the Company’s estimates of
the size of the markets for its vehicles and cost to bring those
vehicles to market; the rate and degree of market acceptance of the
Company’s vehicles; the Company’s ability to cover future warrant
claims; the success of other competing manufacturers; the
performance and security of the Company’s vehicles; current and
potential litigation involving the Company; the Company’s ability
to receive funds from, satisfy the conditions precedent of and
close on the various financings described elsewhere by the Company;
the result of future financing efforts, the failure of any of which
could result in the Company seeking protection under the Bankruptcy
Code; the Company’s indebtedness; the Company’s ability to cover
future warranty claims; the Company’s ability to use its
“at-the-market” program; insurance coverage; general economic and
market conditions impacting demand for the Company’s products;
potential negative impacts of a reverse stock split; potential
cost, headcount and salary reduction actions may not be sufficient
or may not achieve their expected results; circumstances outside of
the Company's control, such as natural disasters, climate change,
health epidemics and pandemics, terrorist attacks, and civil
unrest; risks related to the Company's operations in China; the
success of the Company's remedial measures taken in response to the
Special Committee findings; the Company’s dependence on its
suppliers and contract manufacturer; the Company's ability to
develop and protect its technologies; the Company's ability to
protect against cybersecurity risks; and the ability of the Company
to attract and retain employees, any adverse developments in
existing legal proceedings or the initiation of new legal
proceedings, and volatility of the Company’s stock price. You
should carefully consider the foregoing factors and the other risks
and uncertainties described in the “Risk Factors” section of the
Company’s Form 10-K filed with the Securities and Exchange
Commission (“SEC”) on May 28, 2024 and other documents filed by the
Company from time to time with the SEC. Investors (English):
ir@faradayfuture.com
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version on businesswire.com: https://www.businesswire.com/news/home/20240528134731/en/
Investors (Chinese): cn-ir@faradayfuture.com Media:
john.schilling@ff.com
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