May 29, 2024 – Faraday Future (FF), the electric vehicle startup, has recently disclosed its financial results for the fourth quarter and full year ended December 31, 2023. The report reveals that the company generated a meager revenue of 800,000fortheentireyear,whileincurringsalescostsof43 million.
Interestingly, the report states that there was no revenue or sales cost in 2022, indicating that the company only began delivering vehicles in the third quarter of 2023. Despite this late start, FF managed to narrow its operating loss to 286millionin2023,downfrom437 million in 2022.
This improvement was primarily achieved through significant reductions in operating expenses, which fell from 437millionin2022to244 million in 2023. However, the company still recorded a net loss of 432millionin2023,comparedtoanetlossof602 million in the previous year.
In terms of its financial position, FF reported total assets of 531millionasofDecember31,2023,slightlyupfrom529 million a year earlier. The company’s total liabilities stood at 302million,downfrom328 million at the end of 2022.
FF also noted that its net cash used in operating activities amounted to 278millionin2023,adecreasefrom383 million in the previous year. Additionally, the company’s capital expenditures declined to 31millionin2023,comparedto123 million in 2022.
Despite these efforts to reduce costs and improve its financial position, FF remains in a precarious situation. As of December 31, 2023, the company had a cash balance of just 4million,including2 million in restricted cash. By May 23, 2024, its cash position had increased slightly to approximately 5million,butthisstillincludes2 million in restricted cash.
Looking ahead, Faraday Future expressed concerns about potential unforeseen expenses and challenges related to the delivery of its FF91 series. The company cautioned that it may never generate sufficient revenue to sustain its operations, highlighting the risks and uncertainties associated with the startup’s future.
“We began production of the FF 91 Futurist in March 2023 and started deliveries to customers in August 2023,” the company stated. “As of December 31, 2023, we had sold 4 vehicles and leased 6 vehicles.” While this represents a small step forward for FF, the company’s financial challenges and uncertain future prospects remain a significant concern.
