Faraday Future is on track to start production of the FF 91 this month, if the funds come through

Faraday Future on Wednesday announced plans to begin production of its futuristic all-electric FF 91 SUV in late March after years of delays, a lack of capital and internal drama that threatened the company’s survival.

Faraday Future previously said production would begin in March, but a date has yet to be set.

However, there are two caveats to this move. The company said in its full-year and fourth-quarter earnings reports that if it receives the remaining funds expected from investors and if suppliers can meet its requirements, production will begin on March 30. . Faraday Future said in February that it had secured financial commitments for $135 million in senior secured convertible bonds, which the company said would allow capital to begin production. About 111.6 million dollars were received. The company expects additional payments of between $38.4 million and $58.4 million.

Chief Executive Officer Xuefeng Chen said he was confident the funds would be collected during the company’s earnings report on Wednesday. However, his fundraising days are not over. The company’s chief financial officer, Faraday Future, said it wants to raise at least an additional $50 million.

“It’s always been our plan and our plan to raise additional funds to go beyond the initial launch of the FF 91 Futurist,” Yun Han said. “We have just started fundraising for $50 million to have good liquidity to support the production rate and we have received indications of interest from investors for almost all amounts.

The FF 91 will be built at its factory in Hanford, California. The first vehicles are expected to roll off the assembly line in early April, with customer deliveries expected by the end of this month, the company said. According to Chen, the company initially focused on sales in the Los Angeles area, then San Francis bay District, And THE New York Subway area. year China, of the company initial sale efforts will be IN THE BEGINNING with Shanghai And Beijing, he said.

Shares of Faraday Future fell 8% to $0.51 per share ahead of the earnings report. The manufacturing update helped push shares up about 0.44% after hours, despite a dismal earnings report.

Faraday Future did not generate any revenue in the fourth quarter or 2022 for that matter. Its operating expenses will be $451 million in 2022, compared to $354.1 million last year. According to Faraday, the main part oOperating expenses were recorded in the first nine months of the year due to an increase in engineering, design and testing costs.

The company reported a net loss of $552.1 million in 2022, up nearly 7% from the $516.5 million it lost last year. Net loss for the fourth quarter was $153.9 million, compared to $84.3 million in the year-ago period.

Faraday Future reported that it ended the fourth quarter with $18.5 million in cash and restricted cash. The company’s cash position has improved and now stands at $37.5 million, including $2.1 million of restricted cash at March 3, 2023.

While that production date is still a ways off, it still represents a change for a company that was just four months ago. there is considerable doubt about the possibility of continuing its activities next year.

At the time, Faraday cited a number of conditions that would delay the delivery of its FF 91, including suppliers’ ability to satisfy their product, the timing and success of certification tests, and reduced company performance and efficiency. High on the list of concerns was whether Faraday would be able to secure the funds needed throughout the year, let alone the initial deliveries.

The company’s board ousted CEO Carsten Breitfeld a week later and appointed Xuefeng Chen, a former Chery Jaguar Land Rover executive who recently ran Faraday Future’s China division, as its new chief. .

Faraday Future has been battling delays and drama for years, compounded by a merger with special-purpose buyout firm Property Solutions Acquisition Corp after its July 2021 IPO. In July 2022, the company postponed the start of production and the first deliveries to the third. and fourth quarters cited supply chain issues and cash shortages.