Faraday Future (FF) announced its third quarter financial report today and achieved revenue generation for the first time – raising a total of US$61.8 million through convertible notes, equity line of credit (ELOC) and ATM financing (Note: currently approximately RMB 451 million).
In addition to the equity financing, FF successfully raised capital through the sale and leaseback of its manufacturing facility in Hanford, California. Through the transaction, FF released up to $12 million of non-dilutive equity capital earmarked for significant improvements and fundamental development of the plant.
Since the successful launch of the second phase of co-creation deliveries on August 12, 2023, FF aims to scale up production of the FF 91 and begin the third phase of delivery, i.e. full delivery of the vehicle to users, by the end of the first quarter of 2024. The company aims to achieve production of about 1,000 vehicles next year under its current plant improvement and ramp-up plan.
Financial Highlights:
Cost of sales was $16.1 million. Of that amount, $10.4 million was tool and equipment depreciation. Most of the remainder is manufacturing overhead, followed by labor and material costs. The higher cost of sales stems from natural inefficiencies in early vehicle production – namely, higher component costs due to initial manufacturing inefficiencies and lower volumes.
Operating losses were $66.4 million, compared with a loss of $80 million a year earlier. The narrowing of operating losses was mainly due to lower research and development expenditures, followed by improvements in administrative expenses.
Net loss was $78 million, compared with a net loss of $119.9 million in the same period last year. The narrowing in net loss was primarily due to lower operating expenses and gains on changes in the fair value of notes payable and warrant liabilities, offset by the non-cash settlement of convertible notes recorded during the quarter.
From January to September this year, net cash outflows from operating activities were US$240.4 million, compared with US$355.1 million in the same period last year; capital expenditures were US$10.8 million, compared with US$112.1 million in the same period last year; net cash inflows from financing activities were US$237.6 million, compared with US$112.1 million in the same period last year. for $40.9 million.
The company's cash balance was $8.6 million, including $1.9 million in restricted cash.
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