Faraday Future plans to begin production of electric FF 91 SUV in March
After years of delays, lack of capital, and internal drama that threatened its existence, Faraday Future announced that it plans to start production of its all-electric FF 91 Futurist SUV by the end of March. This news is a significant milestone for the company, which had previously indicated that production would start in March but had yet to select a date.
Conditions for the Start of Production
The company said in its full-year and fourth-quarter earnings report that the start of production will begin on March 30 if it receives the remaining funds expected from investors and if suppliers are able to meet its requirements. Faraday Future had reached financial commitments of $135 million in convertible secured notes, capital that the company said would allow it to start production. About $111.6 million of funds have been received, and the company is expecting to receive more incremental payments of $38.4 and $58.4 million. CEO Xuefeng Chen expressed confidence that the funds would be received in time.
Production and Sales Details
The FF 91 will be assembled at Faraday Future’s Hanford, California facility, with the first vehicles set to come off the assembly line in early April. Customer deliveries are expected to occur before the end of that month in the Los Angeles and San Francisco Bay Area regions, as well as the New York metro region. In China, the company’s initial sales efforts will begin with Shanghai and Beijing. The stock of Faraday Future fell 8% to $0.51 per share prior to the earnings report being released, but the production update helped push shares up in after-hours tradingSponsored Product about 0.44% despite a rather dismal earnings report.
Financial Performance and Update
In the fourth quarter of 2022, Faraday Future did not generate any revenue, and its operating expenses were $451 million compared to $354.1 million in the previous year. The company reported a net loss of $552.1 million for 2022, about 7% higher than the $516.5 million it lost in the prior-year period. The net loss in the fourth quarter was $153.9 million compared to $84.3 million in the same year-ago period. Faraday Future reported it ended the fourth quarter with $18.5 million in cash and restricted cash, but its cash position has improved and is now $37.5 million, including restricted cash of $2.1 million as of March 3, 2023.
Company History and Previous Challenges
Faraday Future has grappled with delays and drama for years, which escalated after going public in July 2021 via a merger with special-purpose acquisitions company Property Solutions Acquisition Corp. In July 2022, the company pushed its start of production and first deliveries to the third and fourth quarter, citing supply chain issues and a lack of money. The company board ousted CEO Carsten Breitfeld a week later and appointed Xuefeng Chen as its new leader, a former and longtime Chery Jaguar Land Rover executive who most recently led Faraday Future’s China division.
The start of production of the FF 91 on March 30th would mark a turnaround for a company that just four months ago had substantial doubts about its ability to continue operating over the next year. Despite Faraday Future’s rocky history, the company looks to have reached a turning point and is poised to make significant progress in the electric vehicle market.