On July 31, Faraday Future (hereinafter referred to as “FF”) released the financial report for the first quarter of 2024 to the public. The financial report data shows that in the first quarter, FF’s operating expenses were 22.9 million US dollars, compared to 95.8 million US dollars in the same period; the operating loss was 43.6 million US dollars, compared to 95.8 million US dollars in the same period; the net expenditure was 14.7 million US dollars, compared to 103 million US dollars in the same period. In contrast, the cash flow situation generated by operating activities has improved.
At the same time, FF reaffirmed in the financial report that FF has re-met the requirements of the Nasdaq regarding the timely submission of financial reports. In April this year, FF announced that it received a delisting warning letter from the Nasdaq Stock Exchange because the company’s closing bid price for consecutive ten trading days was $0.10 or less. In June this year, FF announced that it would continue to be listed on the Nasdaq. It should be noted that although FF continues to be listed on the Nasdaq, its funding problem has still not been resolved. The financial report shows that as of March 31, 2024, FF’s book assets were 499.9 million US dollars; liabilities were 298.4 million; and net assets were 201.5 million US dollars.
As one of the earliest new forces in the car-making industry to enter the game, FF has been making cars for about 10 years and has spent a huge amount of money, but it only has one model, the FF91. Even more bleak is that there is no market at all after the new car goes on the market. So far, FF has only delivered 12 new cars, and the 12th one was delivered in June this year. Judging from the new car’s launch and delivery situation, FF has been making cars for 10 years, and in essence, there is not much difference from “PPT car-making”. By contrast, Xiaomi Motors only took about three years from announcing car-making to the launch of the first mass-produced model.
However, even if the number of FF deliveries is very small, Jia Yueting still believes in his car-making dream. On June 13, Jia Yueting said: “FF is considering launching a second brand under the ‘Sino-US Automobile Industry Bridge Strategy’. This brand will赋能 FF’s high-value solutions and functions to future mass-volume products for the public, so that more individual investor users can enjoy our ultimate intelligent technology luxury.”
On July 31, Jia Yueting said through a video that since the real establishment of FF, there have been two brands, one is FF, and the other is LeSee. FF mainly targets the top-end market. A very significant feature of the top-end market is that it is impossible to have a large-scale volume, and as an Internet company, the core of FF is to obtain a large amount of driving data and user scale. If there is enough volume for the second brand, it can have an all-round impact. Jia Yueting further explained this, stating that if he were to do the second brand, he would choose to do the base market or even the middle part of the market, and pointed out that if you want to compete, you must first improve your own cost control ability, and at the same time use an innovative model. The biggest worry is not whether it can be done, but how to compete with traditional manufacturers.
When talking about car-making, Jia Yueting pointed out that FF will not be a competitor of BYD, but will focus on the United States and other markets, competing with car companies including General Motors, Ford, Mercedes-Benz, BMW, and Volkswagen, especially the low-end products launched by Volkswagen. In his opinion, the automobile industry is not an industry with a strong network effect. The brand concentration in the automobile industry will become higher and higher, but not too few. At least the United States can tolerate five brands, and FF will be one-fifth.
Today, FF founder Jia Yueting explained the reason for the establishment of FF through a video on social media. Jia Yueting said that FF was established based on the judgment of future trends and said: “AI EV is the biggest commercial opportunity in the AI era.”
Perhaps affected by the release of the financial report, as of the close of the US stock market on July 31, the FF share price closed at $0.350, an increase of 10.76%, and the total market value was 155 million US dollars.