Major Cost Control Initiatives Drive Meaningful Improvement Year-Over-Year.
Commitment to Continued Production and Deliveries While Maintaining Financial Discipline.
FF is Building FF 91 Vehicle Bodies In-House at a Significant Cost Savings.
Raised Approximately $15.5 million.
Ongoing Pursuit of Strategic Investors.
Faraday Future Intelligent Electric Inc. (“FF,” “Faraday Future,” or “Company”), a California-based global shared intelligent electric mobility ecosystem company, announced its financial results for its second quarter 2024 and is scheduled to have an earnings call on these results after market close on Wednesday, August 14, 2024 at 5:00 p.m. Pacific Time (8:00 p.m. Eastern Time).
RESULTS FOR SECOND QUARTER 2024
The Company continued its efforts to control costs and reduce operating expenses:
Second quarter operating expenses improved significantly to $29.9 million compared to $49.4 million in the prior year quarter.
Second quarter loss from operations improved to $50.6 million compared to a loss of $56.0 million in the prior year quarter.
Cash used in operating activities improved meaningfully to $29.1 million in the six months ended June 30, 2024, compared to $160.7 million in the prior year period.
The Company had $457.9 million of assets, $309.2 million liabilities and a book value of $148.7 million at quarter end June 30, 2024.
These results reflect significant cost reductions and cost discipline, and FF anticipates ongoing cost reductions compared to the year-over-year periods through the remainder of 2024. FF has rightsized its operational footprint and workforce based on the current operational requirements and funding situation. The next step is to continue vehicle production and deliveries.
FF raised approximately $15.5 million of gross financing through convertible debt issuances in the second quarter 2024.
KEY COMPANY HIGHLIGHTS
The start of 2024 marked a transformative period for the Company. The Company’s new China-U.S. Automotive Bridge Strategy positions FF to leverage cutting-edge AI and software technologies across multiple market segments, potentially accelerating FF’s mass-market entry while maintaining FF’s ultra-luxury offering. The Company remains focused on executing its global strategy and bringing its unique vision of intelligent electric mobility to a broader audience. In addition, FF recently held its first Investor Community Day to highlight the Company’s technology, its leadership team and the developments that underscore its commitment to innovation and sustainable growth.
FF’s China-U.S. Automotive Bridge Strategy marks a return to a two-brand approach. As part of its dual-home-market strategy. FF expects to leverage its unique bridge value to integrate the strengths of the U.S. automotive industry with those of Chinese original equipment manufacturers (OEMs) and parts suppliers and their respective supply chains, focusing on the $20,000 to $80,000 price segment.
FF plans to enhance procured components with its proprietary AI and vehicle software technology, with the contribution of the mechanical platform and supply chain purchase collaboration from China’s automotive industry, creating a compelling value proposition for the AI EV mass market. The Company’s FF ieFactory in Hanford, California, could allow for full production capabilities, providing a solid foundation for future collaboration with other OEMs. By adjusting certain production lines, additional products could be integrated.
FF is building the FF 91 vehicle body in-house, leading to significant cost savings in this area. The Company’s supply chain successfully resumed SOD2 in June as its production and quality control systems continued to mature.
At the start of the second quarter 2024, FF established a Middle East sales entity in Dubai, signifying an important milestone in the Company’s expansion plans. FF can look to implement a “third pole” geographic strategy that includes the U.S. and China markets that are known for their strong appetite for cutting-edge, high-end products.
Subsequent to the end of the second quarter 2024, the Company successfully refined the terms of previously signed Share Purchase Agreements related to its convertible notes financings. Following the agreement adjustments, most of the cash repayment obligations have been modified to allow for share issuance obligations, and the cash interest expenses would be significantly reduced. This will further help reduce cash pressures and could be conducive to additional financing efforts.
Upon filing the Form 10-Q for the period ending June 30, 2024, the Company continues to be compliant with Nasdaq rules regarding timely Securities and Exchange Commission periodic reporting. The remaining compliance requirement for continued listing on Nasdaq is the minimum bid price on or before August 31, 2024.
OUTLOOK
The Company continues to seek strategic financing. If strategic investments are secured, this could enable production to ramp and support additional deliveries of the FF 91. Furthermore, incremental funding could support the development of the China-U.S. Automotive Bridge Strategy and progress FF’s entry into the Middle East. FF will also keep working to optimize operations to support sustainability. This includes ongoing evaluations of current cost reductions and spending efficiency, including daily operations and FF 91 materials costs.
EARNINGS WEBCAST
Faraday Future management will host a webcast today, August 14, 2024, at 8:00 p.m. Eastern time (5:00 p.m. Pacific time). Interested investors and other parties can listen to a webcast of the conference call by logging onto the Investor Relations section of the Company's website at https://investors.ff.com/. A replay of the webcast will be available on the Company’s website shortly thereafter.
