At a time when the annual reports of many listed companies and this year's Q1 financial reports have been released, Faraday's future financial reports for the third quarter of last year have only come late, as if to make a statement that they have not delisted, in fact, this is the last day of the time specified by nasdaq.
Because of the delay in submitting earnings reports, Faraday Future has received delisting warnings from the American Stock Exchange more than once.
This time, due to the special committee's previously announced investigation, Faraday's future third quarterly report and annual report for 2021 have been postponed. Nasdaq's Listing Qualification Department issued a notice on the same day that if Faraday Future fails to submit its 2021 annual report and 2022 first quarter report on or before May 16, 2022, it will face the risk of delisting.
Another delisting warning.
The only good news in this Q3 earnings report is that Faraday Future announced that it will launch FF91 as scheduled in the third quarter of this year.
In addition, in the financial figures, it is still the main theme of losses.
For the third quarter ended September 30, 2021, Faraday Future net loss was $304 million, compared to a net loss of $33 million for the same period last year. Faraday Future said the increase in net loss was mainly due to a significant increase in operating expenses.
According to the financial report, Faraday Future's operating expenses for the third quarter ended September 30, 2021 were $186 million, an increase of 8.2 times year-on-year.
Regarding the significant increase in operating expenses, the financial report said that it was mainly due to the increase in investment at the Hanford manufacturing plant in preparation for full commercial production. It is reported that the Hanford manufacturing plant is expected to produce 10,000 cars per year after completion. According to the planned time, the plant will start production in the third quarter of this year.
In terms of R&D, R&D expenses in the third quarter of 2021 were US$79.757 million, compared with US$3.52 million in the same period last year; R&D expenses in the first three quarters were US$94.506 million, compared with US$1.4704 million in the same period last year.
Faraday Future 2021 Q3 Financial Report Source: Faraday Future Official Micro
Compared with the level of wei xiaoli's general billions last year, the gap is very large. You know, FF91 is an ultra-luxury pure electric SUV positioned at 2 million yuan, whether it can support such a high product positioning at the research and development level, which is also a question, not to mention a new car FF81, Faraday's future research and development costs are enough to spend?
Although in the view of Bi Fukang, global CEO of Faraday Future, Faraday Future had sufficient capital and good debt at the end of the third quarter. However, as of September 30, 2021, Faraday Future cash and cash equivalents balances were $666 million.
At the same time, the financial report also shows that Faraday Future's cash balance as of March 31, 2022 was $276 million, including $97 million in notes and planned interest repayments.
The book capital is less than 300 million yuan, and this capital reserve is actually not optimistic.
FF91 mass production is imminent, and further information about orders, channel construction and other information has not yet been announced. Earlier, Because of the order fraud, Faraday Future made a round of personnel adjustments, in which Jia Yueting, as the founder and chief product officer, reported directly to the new executive chairman and former independent director Susan Swenson, and Bi Fukang was treated with a 25% salary cut.
Faraday Future has said it will build flagship stores in Los Angeles and New York Source: Faraday Future Official Micro
In the earnings report, Faraday Future also announced a blockbuster news, the company has signed a contract with South Korean automaker Myoung Shin Co Ltd. to build Faraday Future's second car, FF 81, scheduled for 2024 SOP (Standard Operating Procedures).
If it is not like FF91 "good things and more grinding", FF81 can really be developed and mass-produced as scheduled, Faraday's future product matrix is still slow.
At present, Faraday Future's stock price is only $2.37, and the market value is only 700 million yuan.
Over the past year, Faraday Future's China team has been seeking projects in various cities in China, but until now there has been no progress.
Although the car project is hot, Faraday's future is still reserved. Founder Jia Yueting is now in name only, CEO Bi Fukang has previously played a bad car project in China, the credibility of the capital market is in jeopardy, in order to save money, from leasing factories to co-building stores, Faraday Future has almost all adopted an asset-light model. In addition to the small investment, it is almost impossible to see the innovation of business models and the high demand for products at the market level.
The step of mass production has been very difficult, how can FF prove its future?
*Head image source: Faraday Future Official Micro
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