Wed, Aug 14, 8:56 PM (153 days ago)
Faraday Future Intelligent Electric Inc. reported significant financial challenges for the quarter ending June 30, 2024. The company generated $293 in revenue, a stark increase from $0 in the previous year, but faced a gross loss of $20.7 million due to high costs of revenue totaling $21 million. Operating expenses amounted to $29.9 million, leading to an operating loss of $50.6 million, slightly improved from $56 million in Q2 2023. Net losses totaled $108.7 million, with a substantial accumulated deficit of $4.1 billion. Cash flow remains critical, with current assets down to $70.1 million from $91.4 million, and cash reserves diminishing to $793,000. The company has ongoing liquidity concerns, relying on convertible notes and related party financing amid defaults on existing obligations. Future operations are uncertain, heavily dependent on securing additional capital and achieving vehicle production milestones. The company’s stockholder equity also fell to $148.7 million, reflecting ongoing financial distress and potential bankruptcy risks if additional funding is not secured.