Faraday Future may finally be nearing production of its much-anticipated flagship vehicle, the FF 91 Futurist. The company’s recently released Q4 and full-year 2022 financial report suggests production could begin as early as this month. However, the startup’s outlook and goals for 2023 depend heavily on the receipt of tens of millions in funding that were previously promised.
Faraday Future’s journey has been marked by financial and internal ups and downs, serving as a tale of caution and perseverance in the EV industry. The company’s flagship vehicle, the FF 91 Futurist, debuted in 2017, but by the end of the year, the company’s CFO and CTO had left to form their own EV startup, Canoo, which faced its own set of challenges.
The company faced various financial setbacks, controversies involving former employees, layoffs, and loans, leading to founder YT Jia’s resignation as CEO in 2019 after filing for bankruptcy. In August of 2022, the startup was expecting deliveries of the FF 91 Futurist by year-end, but an investor dispute caused yet another delay.
See also: Faraday Future FF 91 specifications : Everything you should know
According to Faraday Future’s Q4 and 2022 results, the company has acquired a significant portion of the promised funding, but millions more are required to hit its production target in California. Its FF ieFactory California remains on track to begin FF 91 Futurist production on March 30, “subject to the timely receipt of the previously announced and committed $135.0 million.”
Faraday Future states that these financial commitments are critical to meeting its delivery target to customers in late April, along with its suppliers meeting their supply chain requirements for the builds. The startup received $111.6 million of the funds committed since the end of Q4 2022, but another $38.4-$58.4 in incremental funds are still expected.
Operating expenses for 2022 were $451 million, with increases in engineering, design, and testing cited as the reason for added expenses. Net losses were up to $552.1 million compared to $516.5 million in 2021, with Q4 2022 losses of $153.9 million compared to just over $84 million the year before. The company’s cash and restricted cash were down to $18.5 million at the end of Q4 2022 but rose to $37.5 million (including $2.1 million in restricted cash) as of March 2, 2023.
See also: Faraday Future Secures $135 Million in Funding for FF 91 Production Start in March 2023
Newly appointed global CEO Xuefeng “XF” Chen spoke to the company’s current situation in bringing the FF 91 Futurist to production, stating that securing the necessary funding commitments is a major game-changer for the company, and he expects to utilize all available resources to deliver the vehicle to their customers.
While Faraday Future may be on track to hit its production target, the company’s past setbacks caution against holding one’s breath. All eyes will be on the March 30 SOP target to see if Faraday Future can secure the funding promised to them.
