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The company has transitioned its operations into the production and revenue generation phase with the FF91 2.0 EV in 2023.
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The realization of fiscal 2023 revenues, a decrease in operating loss and cash used in operating activities, and an improved balance sheet composition compared to fiscal 2022.
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The company is committed to increasing production and deliveries while maintaining financial discipline.
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We continue to seek additional key strategic investors to drive our future growth.
Los Angeles, May 28, 2024–(BUSINESS WIRE)–Faraday Future Intelligent Electric Inc. (Nasdaq: FFIE) (“FF”, “Faraday Future” or the “Company”), a California-based global shared intelligent electric mobility ecosystem company, today announced its financial results for the fourth quarter and full year ended December 31, 2023.
Fourth Quarter and Full Year 2023 Results
In fiscal year 2023, FF achieved its first annual revenue increase, with a decrease in operating loss and cash flow from operating activities, and an improved balance sheet composition compared to fiscal year 2022. These results were achieved through significant cost reductions and strict cost discipline.
FF reported revenue of $0.8 million and cost of goods sold of $43 million in 2023, compared to no revenue or cost of goods sold in 2022, reflecting the company only beginning vehicle deliveries in the third quarter of 2023. Operating loss for 2023 was $286 million compared to an operating loss of $437 million in 2022. The change was driven by a significant reduction in operating expenses, $244 million in 2023 compared to $437 million in 2022. The improvement in operating expenses for the year was primarily due to lower research and development expenses as the company completed product development and transitioned to fulfilling sales through manufacturing and production. Net loss improved to $432 million in 2023 compared to $602 million in 2022.
Total assets as of December 31, 2023 are $531 million, an increase compared to $529 million as of December 31, 2022. Total liabilities are $302 million, an increase compared to $328 million as of December 31, 2022.
Net cash used in operating activities in 2023 was $278 million, up compared to $383 million in 2022. Capital expenditures in 2023 were $31 million, up compared to $123 million in 2022.
As of December 31, 2023, our cash balance was $4.0 million, which includes $2.0 million of restricted cash, compared to $17.0 million of cash as of December 31, 2022. As of May 23, 2024, our cash balance was approximately $5.0 million, which includes $2.0 million of restricted cash.
The Company continues to seek to attract significant strategic investors to support future growth. The Company is also considering raising capital secured by its equipment and intellectual property to reduce its reliance on dilutive financings. The Company does not intend to issue additional shares unless and until it receives shareholder approval to increase the number of authorized shares.
“2023 was a milestone year for FF, as we transitioned into a growth phase focused on production and revenue generation, solidifying FF's position in the ultra-luxury and performance EV market,” said Matthias Eidt, Global CEO of Faraday Future. “Going forward, we look forward to the future as we steadily pursue growth through efficiencies and the new markets we entered in 2023. We remain focused on enhancing both product strength and shareholder value.”
Key Corporate Highlights for 2023
FF has launched a leasing program with Luxury Lease Partners, obtained licensing with the Bureau of Automotive Repair, launched a home charging equipment program and rolled out a public charging program – all initiatives designed to provide a seamless, customer-centric experience for users.
The company also announced a possible entry into the Middle East market late last year, which also included a strategic cooperation agreement with Master Investment Group and Shirazi Holding LLC. Entering the Middle East would add a third pillar to the company's geographic strategy, which also includes the US and China.
FF has also agreed to collaborate with the Abu Dhabi Investment Authority (ADIO) to bring generative AI and advanced intelligent electric vehicle capabilities to the UAE’s Smart Autonomous Vehicle Industry (SAVI) cluster.
Outlook
Given current market conditions and current capital levels, the Company is withdrawing its 2024 production target guidance.
Revenue Webcast
Faraday Future's management will host a webcast today, May 28, 2024 at 8:00 pm Eastern Time (5:00 pm Pacific Time). Interested investors and other parties may listen to the webcast of the conference call by logging on to the Investor Relations section of the Company's website at https://investors.ff.com/.
About Faraday Future
FF is the pioneer of the ultimate intelligent technology luxury super-spire market in the intelligent EV era and a disruptor of traditional ultra-luxury car civilization. FF is not just an EV company, but also a software-driven company of intelligent Internet AI products.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this press release, words such as “estimates,” “projects,” “expects,” “anticipates,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “proposed,” and variations of these terms or similar expressions (or the negative of these terms or expressions) are intended to identify forward-looking statements. These forward-looking statements, including statements regarding our planned financings, our growth strategies in the United States, China and the Middle East, and our leasing programs, are not guarantees of future performance, circumstances or results and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside of our control and could cause actual results or outcomes to differ materially from those described in the forward-looking statements.
Important factors that may affect actual results or achievements include, among others, our ability to continue as a going concern and improve our liquidity and financial condition, our ability to pay our outstanding indebtedness, our ability to remedy the material weakness in our internal control over financial reporting and the risks associated with the restatement of previously issued consolidated financial statements, our limited operating history and the significant barriers to growth we face, our loss history and projections of continuing losses, the success of our workforce cost reduction plans, our ability to execute our vehicle development and sales plans and the timing of these development programs, our estimates of the size of the market for our vehicles and the costs to bring those vehicles to market, the rate and extent of market acceptance of our vehicles, our ability to cover future warrant claims, the success of other competing manufacturers, the performance and safety of our vehicles, current and potential litigation involving us, our ability to receive funds from and satisfy the conditions precedent to and complete the various financings described elsewhere; the outcome of future financing efforts (the failure of any of which could cause us to seek protection under bankruptcy laws); our indebtedness; our ability to cover future warranty claims; our ability to utilize our “at-the-market” program; insurance coverage; and general economic and market conditions affecting demand for our products. potential adverse effects of the reverse stock split; potential cost, workforce and salary reduction measures may not be sufficient or achieve the expected results; conditions beyond the Company's control, such as natural disasters, climate change, health epidemics or pandemics, terrorist attacks and civil unrest; risks related to the Company's operations in China; the success of any remedial actions taken by the Company in response to the Special Committee's findings; our dependence on our suppliers and contract manufacturers; our ability to develop and protect our technology; our ability to protect against cybersecurity risks; our ability to attract and retain employees, adverse developments in existing legal proceedings or the initiation of new legal proceedings, and fluctuations in our stock price. You should carefully consider the above factors, as well as the other risks and uncertainties described in the “Risk Factors” section of the Company's Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on May 28, 2024, and other documents the Company files with the SEC from time to time. Investors (English): ir@faradayfuture.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20240528134731/en/
contact address
Investors (Chinese): cn-ir@faradayfuture.com
Media: john.schilling@ff.com
