Faraday Future Intelligent Electric recently reported “substantial doubt” regarding its ability to operate going forward. The electric vehicle startup also mentioned doubts about fulfilling the FF 91‘s initial deliveries, as per InsideEVs.
It is worth noting that Faraday Future had difficulty making a name for itself in the automotive sector.
The EV startup has already postponed FF 91 deliveries before. In July, it delayed the production and the first deliveries to the third and fourth quarters. It blamed financial constraints and problems with the supply chain.
It seems that Faraday Future is planning to delay the deliveries again, as it states that it does not anticipate making deliveries in 2022. The stock price of the corporation has decreased by 94%.
The company will now require extra funding just to survive until 2022. Per Monday’s filing, Faraday “projects that it may require additional funds during the remainder of 2022 and will require additional funds beyond 2022 in order to continue operations and support the ramp-up of production of the FF 91 to generate revenues to put the Company on a path to cash flow break-even.”
At the end of the third quarter of 2022, Faraday Future claimed it had close to $32 million in cash. It is worth noting that from the $121 million it had at the close of the previous quarter, it significantly decreased.
As of November 17 this year, the business had only accepted 369 refundable deposits for its FF 91 EV. Since the end of June, about 30 customers have canceled their orders. It’s interesting to note that Faraday only lost $103.4 million in the third quarter vs. $303.9 million in the same quarter last year.
Founding a car company is extremely expensive, particularly now when expenses are at record highs, and there are several supply chain problems.