Tencent Technology News News on March 9, after the US stock market closed on Wednesday local time, Faraday Future announced its fourth quarter and full year financial results as of December 31, 2022. Faraday Future reported full-year fiscal 2022 operating expenses of $451 million, compared to $354.1 million in 2021, of which operating expenses were $83.9 million in the fourth quarter, compared to $121.4 million in the same period last year, and a net loss of $552.1 million for fiscal 2022 compared to $516.5 million in 2021, including a net loss of $153.9 million in the fourth quarter, compared to $84.3 million in the same period last year. As of December 31, 2022, Faraday Future held cash and restricted cash of $18.5 million. After the earnings report, Faraday Future's stock price rose slightly.
1. Operating expenses increased and net loss increased
1. Fourth quarter and full year financial results
Faraday Future operating expenses were $451 million for the year ended December 31, 2022, compared to $354.1 million as of December 31, 2021. Operating expenses were $83.9 million in the fourth quarter, compared to $121.4 million in the year-ago quarter. The increase in operating expenses in 2022 was primarily due to higher engineering, design and test ("ED&T") costs. The decrease in operating expenses in the fourth quarter of 2022 compared to the fourth quarter of 2021 was primarily due to the fact that most ED&T expenses were spent in the first nine months of last year.
Faraday Future's net loss was $552.1 million as of December 31, 2022, compared to a net loss of $516.5 million for the prior year. The change was primarily due to higher ED&T costs and an increase in the measurement of fair value of certain notes payable and warrant liabilities in 2022, partially offset by increased losses on liquidation of sellers' payables in related party notes payable, notes payable and trusts. Primarily recorded as part of the conversion of notes payable related to the business combination completed by Property Solutions Acquisition Corp on July 21, 2021, which resulted in a loss of $94.7 million in 2021.
Faraday Future's net loss was $153.9 million in the fourth quarter of 2022, compared to a net loss of $84.3 million in the year-ago quarter. The increase was primarily due to an increase in certain notes payable and warrant liabilities measured at fair value in 2022 and settlement gains on related party notes payable, notes payable and vendor trust payments of $9.1 million net principal amount of the Company's payroll protection loans recorded during the three months ended December 31, 2021.
As of December 31, 2022, Faraday's net cash used from future operating activities was $383.1 million, compared to $339.8 million in 2021. Capital expenditures for the fiscal year ended December 31, 2022 were $123.2 million, compared to $95.7 million in 2021. As of December 31, 2022, Faraday Future's financing activities used net cash of $6.7 million, compared to $966.6 million in 2021.
2. Executive comments
Xuefeng Chen, Global CEO of Faraday Future, said: "We have come a long way in enabling our customers to drive the FF 91 Futurist and I am proud of the dedication our team has shown in achieving all the important milestones. It is important for us to obtain the necessary financial commitment to start production and delivery of this car. Going forward, we want to use all available resources to deliver our cars to passionate customers. ”
3. Cash flow
At the end of the fourth quarter, Faraday Future held approximately $18.5 million in cash and restricted cash. As of March 3, 2023, the company had $37.5 million in cash, including $2.1 million in restricted cash.
2. Significant progress
1. Important announcements in the fourth quarter of 2022
Faraday Future continued its efforts to achieve its long-term business plan, making the following key announcements in the fourth quarter:
——Appointed Chen Xuefeng as Faraday Future Global CEO
- Appointed Jie Sheng, Chen Xuefeng and Sun as members of Faraday Future's Board of Directors
Innovusion was selected as the lidar supplier for the flagship FF 91 Futurist
2. Business development
After December 31, 2022, FF announced significant progress made by the company:
– Establishing a non-binding strategic partnership with Huanggang City, Hubei Province, China
Signed a new shareholder agreement with FF Top Holdings LLC
-- Announced a $135 million convertible guaranteed note financing commitment
Received $70 million in committed payments from a $135 million financing, as well as $23.6 million previously committed and $18 million from investors exercising their right to invest additional funds in the Company
Since December 2022, the SOP funding target has received $111.6 million and will receive a further $38.4 million to $58.4 million in incremental funding
- Shipping the latest FF 91 Futurist to China for final evaluation and testing
Continue to test and improve all key functions of the FF 91 Futurist in connected cars, ADAS and intelligent Internet applications
The FF 91 Futurist, which integrates all basic ADAS functions, is currently being tested at proving grounds and on public roads
- Released a full beta version of FF91 Futurist's unique smart parking feature with integrated summoning
Announces shareholder approval of a proposal to increase the authorized share to 1.69 billion Class A ordinary shares
- Thanks to a strong partnership with a world-class equipment supplier, all the equipment needed to build the FF 91 Futurist was obtained
Faraday Future plans to host the 2023 Faraday Future Global Supplier Summit at the end of April 2023
3. Production and delivery updates
Faraday Future has set the SOP date for its flagship FF 91 Futurist on March 30, 2023, provided that the company's manufacturing facility "FF ieFactory California" in Hanford, California, receives timely funding from investors and suppliers that meet our supply chain requirements, that the first vehicles will roll off the assembly line in early April 2023 and that customers will deliver by the end of April 2023.
4. Product and Technology 2.0 plan
Faraday Future is completing the testing and validation of the FF 91 Futurist through the Product and Technology 2.0 project (PT Gen 2.0). The upgrade from PT Gen 1.0 to PT Gen 2.0 includes major upgrades to systems and core components in the vehicle and I.A.I. field, I.A.I. is the high-level core that stands for Internet, autonomous driving and intelligence. PT Gen 2.0 is achieved through 26 major system and component upgrades, including 13 key upgrades related to powertrain, battery, charging, chassis, electric vehicle interior, etc., and 13 key upgrades related to the FF 91 Futurist's computing, sensing, communication, user interaction and performance.
3. Stock price performance
Faraday Future's shares listed on the Nasdaq Global Select fell 8.04% to close at $0.514 per share on Wednesday. At press time, the stock is up slightly in after-hours trading and is now trading at $0.518 per share.
Over the past 52 weeks, Faraday Future shares have peaked at $7.85 and as low as $0.245. Faraday's future market capitalization is about $381.2 million based on Wednesday's closing price. (Golden Deer)