Shulou(Shulou.com)11/24 Report--

On November 22, Faraday, an electric car start-up, released its results for the third quarter ended September 30 this year on Monday. The company reported an operating loss of about $81 million in the third quarter, compared with an operating loss of about $186 million a year earlier. The company's net loss fell to about $103 million in the third quarter, compared with a net loss of about $304 million a year earlier.

Faraday said in the future that third-quarter spending was mainly spent on the completion of the final stages of car production and manufacturing tools, engineering, testing and certification capabilities at the manufacturing facility in Hanford, California. Compared with the same period last year, the expenditure on these activities is lower. The decrease in operating loss in the third quarter was also due to reduced costs caused by delayed procurement of spare parts and a slowdown in the development of projects related to electric vehicle models in the future.

Faraday Future said that as of September 30 this year, the company's total assets were $541 million, including $32 million in cash, down from $121 million at the end of last quarter.

Faraday said in the future that it would continue to incur huge operating losses in the foreseeable future, expressed "deep doubts" about the company's ability to continue to operate, and said it was uncertain when the first FF 91 luxury electric cars could be delivered. Earlier this year, Faraday said it planned to start delivering the car in the fourth quarter of this year.

But Carsten Breitfeld, Faraday's future chief executive, said, "the third quarter was a turning point for the company, with positive momentum in both car and financing projects. The company completes construction and equipment installation in the automobile assembly area of the ieFactory plant in Hanford, California. In addition, FF 91 testing and verification projects have also made strong progress, including vehicle mileage, acceleration and braking and other key performance indicators of FF 91 are even better than promised. " He added, "We have completed an important financing agreement in the third quarter... to be able to implement the additional funds needed to deliver FF 91. The company is currently revising its budget and production plan and hopes to announce to users when the delivery of FF 91 will be made available soon after the funds are available."

Faraday's future share price has fallen about 94% so far this year. The company said it would need more operating capital and increased production capacity in the future.

Faraday added that it had received 369 pre-sale orders for electric vehicles as of November 17, down from 399 as of June 30 this year. It should be clear that Faraday's future advance order is refundable and non-binding.

In September this year, Faraday reached an agreement with the company's second largest shareholder to resolve existing governance disputes. Earlier, the second largest shareholder sued Faraday Future, demanding that the company remove two board members.

Like many of its peers in electric vehicles, Faraday has been grappling with rising costs and supply chain problems that have led to repeated delays in the delivery of FF 91 luxury electric vehicles in the future.

The cost of lithium and primary battery materials has risen so far this year. Rising costs and depleted cash reserves have led investors to question the health of the balance sheets of electric car start-ups.

Earlier this month, Arrival SA, a British commercial electric car start-up, also warned that its continued health was at risk.

Meanwhile, Faraday's third-quarter loss narrowed to $103.4 million from $303.9 million a year earlier.

"Faraday Future: FF 91 is not expected to be delivered this year and additional funding is required."

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