Faraday Future, a California-based startup, is facing financial challenges as it reported a loss of nearly $44 million in the first quarter of this year. The company managed to sell only two electric vehicles during this period. Despite starting production of the FF91 EV in March 2023, Faraday Future has sold a total of 16 vehicles so far, with the first ten being sold in 2023 and another four in 2024.
The company’s financial situation is concerning, with revenue of just $300,000 in the first quarter from the two vehicle deliveries and lease revenue from past deliveries. However, given that the price of a single FF91 EV is around $300,000, the numbers appear questionable. Operating expenses decreased slightly year-over-year to $22.8 million, while net losses increased to $43.8 million. Net assets saw a 21.6% increase year-over-year, reaching $139.8 million, but operating cash outflow also increased by 38% to $20.3 million.
Faraday Future is pinning its hopes on a new lineup of more affordable EVs branded as FX. The first model in this lineup is an electric minivan called the Super One, set to debut at the end of June with a price tag below $50,000. The company has plans to unveil more models later this year, including a Toyota RAV4-sized crossover.
The shift towards more affordable models comes as a strategic move for Faraday Future, aiming to attract a wider customer base and increase sales volume. The company has already received 1,300 pre-orders from two U.S. companies for the electric minivan, all backed by non-refundable deposits. However, it is important to note that these orders are non-binding.
In comparison to high-end automakers like Rolls-Royce, which sold over 5,000 cars last year, Faraday Future’s sales figures are significantly lower. The company’s focus on introducing more affordable EVs could be a step in the right direction to improve its market position and financial stability. Stay tuned for more updates on Faraday Future’s upcoming models and their impact on the electric vehicle market.