FF has accumulated losses of approximately $2.8 billion and is expected to generate significant operating losses in the future

Blue Whale Motors, December 8, Faraday Future disclosed for the first time the company's financial situation after the IPO. An operating loss of approximately $143 million is expected in Q3, with the increase primarily attributable to increased costs of Hanford manufacturing facilities associated with full commercial mass production at the Hanford plant; and a net loss of approximately $280 million is expected in Q3.

In terms of assets, total assets are expected to be approximately $1.1 billion, including approximately $667 million in cash and cash equivalents as at September 30, 2021.

In terms of liabilities and losses, total liabilities as of September 30, 2021 are expected to be approximately $354 million, and cumulative losses as of September 30, 2021 are expected to be approximately $2.8 billion. Significant operating losses are expected to continue for the foreseeable future.

In terms of products, the Hanford plant is currently progressing smoothly, with sufficient cash support to complete the production of FF 91 by July 2022, and the target remains unchanged.

The FF said it had revised its estimates for additional capital needed to achieve positive earnings and cash flow in 2024: $1.5 billion in additional funding would be needed, up from a previous estimate of $1.4 billion. The additional funds will be used for FF 81 and FF 71 projects, independent of FF 91.

In July this year, FF was listed in the United States, closing at $13.98 on the day of issue, with a market value of about $4.5 billion. As of the close of trading on December 7, FF shares were trading at $5.56, with a total market capitalization of $1.803 billion, or about 40% of the market value at the time of issuance.

In October, FF received a letter from NASDAQ stating that the FF company did not comply with nasdaq listing rules. Nasdaq requires FF to submit its quarterly report of September 30, 2021 within 60 days, or it may be forced to delist.

In response to this news, FF said that after receiving the NASDAQ letter, it has submitted a document to NASDAQ on why it delayed the release of the third quarter financial report, and the document said that the company is investigating allegations of inaccurate disclosure from short-selling agencies, so it postponed the submission of the third quarter financial report. Earnings reports will not be submitted until the end of the investigation. But when the investigation will be concluded, Faraday Future said it could not be determined at this time.

This article originated from Blue Whale Finance