- 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. (Nasdaq: FFIE) (“FF,”
“Faraday Future,” or “Company”), a California-based global shared
intelligent electric mobility ecosystem company, today 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.
ABOUT FARADAY FUTURE
Faraday Future is the pioneer of the Ultimate AI TechLuxury
ultra spire market in the intelligent EV era, and the disruptor of
the traditional ultra-luxury car civilization epitomized by Ferrari
and Maybach. FF is not just an EV company, but also a
software-driven intelligent internet company. Ultimately FF aims to
become a User Company by offering a shared intelligent mobility
ecosystem. FF remains dedicated to advancing electric vehicle
technology to meet the evolving needs and preferences of users
worldwide, driven by a pursuit of intelligent and AI-driven
mobility.
FORWARD-LOOKING STATEMENTS
This press release includes “forward-looking statements” within
the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995. When used in this
press release, the words “estimates,” “projected,” “expects,”
“anticipates,” “forecasts,” “plans,” “intends,” “believes,”
“seeks,” “may,” “will,” “should,” “future,” “propose” and
variations of these words or similar expressions (or the negative
versions of such words or expressions) are intended to identify
forward-looking statements. These forward-looking statements, which
include statements regarding the Company’s financings, cash
pressures and requirements, cost reductions, cash interest expense,
strategy in the U.S., China and the Middle East, the China-U.S.
Automotive Bridge Strategy, a second brand, integrating the
Company’s AI and software into a second brand, and deliveries of
the FF 91, are not guarantees of future performance, conditions or
results, and involve a number of known and unknown risks,
uncertainties, assumptions and other important factors, many of
which are outside the Company’s control, that could cause actual
results or outcomes to differ materially from those discussed in
the forward-looking statements.
Important factors, among others, that may affect actual results
or outcomes include, among others: the Company’s ability to
continue as a going concern and improve its liquidity and financial
position; the Company’s ability to pay its outstanding obligations;
the Company's ability to remediate its material weaknesses in
internal control over financial reporting and the risks related to
the restatement of previously issued consolidated financial
statements; the Company’s limited operating history and the
significant barriers to growth it faces; the Company’s history of
losses and expectation of continued losses; the success of the
Company’s payroll expense reduction plan; the Company’s ability to
execute on its plans to develop and market its vehicles and the
timing of these development programs; the Company’s estimates of
the size of the markets for its vehicles and cost to bring those
vehicles to market; the rate and degree of market acceptance of the
Company’s vehicles; the Company’s ability to cover future warrant
claims; the success of other competing manufacturers; the
performance and security of the Company’s vehicles; current and
potential litigation involving the Company; the Company’s ability
to receive funds from, satisfy the conditions precedent of and
close on the various financings described elsewhere by the Company;
the result of future financing efforts, the failure of any of which
could result in the Company seeking protection under the Bankruptcy
Code; the Company’s indebtedness; the Company’s ability to cover
future warranty claims; the Company’s ability to use its
“at-the-market” program; insurance coverage; general economic and
market conditions impacting demand for the Company’s products;
potential negative impacts of a reverse stock split; potential
cost, headcount and salary reduction actions may not be sufficient
or may not achieve their expected results; circumstances outside of
the Company's control, such as natural disasters, climate change,
health epidemics and pandemics, terrorist attacks, and civil
unrest; risks related to the Company's operations in China; the
success of the Company's remedial measures taken in response to the
Special Committee findings; the Company’s dependence on its
suppliers and contract manufacturer; the Company's ability to
develop and protect its technologies; the Company's ability to
protect against cybersecurity risks; and the ability of the Company
to attract and retain employees, any adverse developments in
existing legal proceedings or the initiation of new legal
proceedings, and volatility of the Company’s stock price. You
should carefully consider the foregoing factors and the other risks
and uncertainties described in the “Risk Factors” section of the
Company’s Form 10-K filed with the SEC on May 28, 2024, as amended
on May 30, 2024, and June 24, 2024, as updated by the “Risk
Factors” section of the Company’s first quarter 2024 Form 10-Q
filed with the SEC on July 30, 2024, and other documents filed by
the Company from time to time with the SEC.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240814511044/en/
Investors (English): ir@faradayfuture.com
Investors (Chinese): cn-ir@faradayfuture.com
Media: john.schilling@ff.com
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