- Strategic FX Second Brand Launch, Completion of Strategic
Realignment, and Significant Middle East Expansion Mark
Transformative Quarter.
- Successfully Secured and Closed on $30 Million Financing.
- Regained Full Nasdaq Compliance.
- FX Brand Launch Targets Mass Market with Models Targeted in
$20,000-$50,000 Range with Potential Roll Off the Assembly Line by
the End of 2025, Subject to Securing Necessary Funding.
- FX Project in First Phase of Vehicle Development, With Related
Work Underway to Achieve Phase One Milestones. FX Plans to Announce
Progress and Next Steps Execution Plan Next Week.
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 its third quarter of 2024.
RESULTS FOR THIRD QUARTER 2024
The Company continued its efforts to control costs and reduce
operating expenses:
- Operating expenses improved significantly, declining 92.6% to
$3.8 million compared to $50.9 million in the prior year’s
quarter.
- Loss from operations improved to $25.2 million compared to a
loss of $66.4 million in the prior year quarter.
- The Company had $449 million of assets, $292.3 million of
liabilities and a book value of $156.7 million at quarter end
September 30, 2024.
KEY COMPANY HIGHLIGHTS
The third quarter of 2024 represented a pivotal time for FF with
the launch of its second brand, Faraday X (FX), heralding a new
chapter in the Company's growth strategy. The FX brand targets the
mass market segment with two planned models: the FX 5, with a price
target between $20,000-$30,000, and the FX 6, with a price target
between $30,000-$50,000. Both models could potentially offer two
types of powertrains: range-extended AIEV and battery-electric
AIEV, with a planned target to roll off the assembly line by the
end of 2025, subject to securing necessary funding.
FF launched its "Everyone's AIEV, You Decide" co-creation
campaign, which has received thousands of responses, demonstrating
interest in high-performance, intelligent, cost-effective B-AIEV
and RE-AIEV products.
As part of the Company's Global Automotive Industry Bridge
Strategy, FF has established relationships with four Chinese OEMs,
having already entered into two strategic framework agreements and
two memoranda of understanding, with a goal of promoting
range-extended AIEV in the U.S. and integrating global automotive
components and supply chains into the U.S., energizing the U.S.
B-AIEV and RE-AIEV markets.
Max Ma, FF’s Head of Global Strategy and Product, along with
investor Sheikh Abdulla Al Qassimi, engaged in in-depth discussions
with potential FX partners in China after the FX launch event. They
achieved all the internal objectives set for these discussions. The
FX project is currently in the first phase of vehicle development,
with related work underway to achieve phase one milestones.
FF secured and closed on $30 million in gross financing. The
Company is establishing a presence in Ras Al Khaimah with business
registration and facility development, marking a significant
milestone in FF's "third pole" geographic strategy beyond the U.S.
and China markets. The Company recently signed a co-investment
agreement with Master Investment Group, led by Sheikh Abdulla Al
Qassimi, to establish its future regional headquarters in Ras Al
Khaimah. Through its Ras Al Khaimah-based entity, Faraday Future
Middle East FZ-LLC, FF signed agreements with the Ras Al Khaimah
Economic Zone (RAKEZ) for both current operations and a nearly
completed 108,000 square foot facility.
FF continued to advance its FF 91 2.0 program with the delivery
of an FF 91 2.0 Futurist Alliance to Born Leaders Entertainment,
bringing total deliveries to 14 vehicles. Born Leaders
Entertainment is now a user and Developer Co-Creation Officer for
FF collaborating on promotional opportunities and high-profile
engagements. The Company has achieved significant operational
improvements, including a 25% improvement in its First Inspection
Customer Craftsmanship Audit score and implementation of
manufacturing-related warranty improvements. Additionally, FF has
enhanced the user experience through software updates, including
expanded voice controls and improved navigation features. The
Company maintains its focus on production optimization and cost
reduction efforts.
On September 4, 2024, Nasdaq confirmed that the Company regained
compliance with Nasdaq’s listing requirements. This followed a
series of actions to address deficiencies in timely filing of
periodic reports and a minimum bid price deficiency.
The Company enhanced its leadership capabilities with strategic
appointments, including Koti Meka as Chief Financial Officer and
Aaron Ma as Acting Head of EV R&D, strengthening its foundation
for continued innovation and market expansion.
OUTLOOK
The Company continues to execute its dual-brand strategy while
pursuing additional strategic financing opportunities. Plans for
the FX brand target initial launch in late 2025, contingent upon
securing necessary funding. FF remains focused on optimizing
operations, reducing costs, and sustainably expanding its global
presence through the China-U.S. Automotive Bridge Strategy and
Middle East initiatives.
EARNINGS WEBCAST
Faraday Future management will host a webcast today, November 6,
2024, at 8:00 pm Eastern time (5:00 pm Pacific time). Interested
investors and other parties can listen to a webcast of the
conference call by logging onto the Investor Relations section of
the Company's website at https://investors.ff.com/.
ABOUT FARADAY FUTURE
Faraday Future is the pioneer of the Ultimate AI TechLuxury
ultra spire market in the intelligent EV era, and the disruptor of
the traditional ultra-luxury car civilization epitomized by Ferrari
and Maybach. FF is not just an EV company, but also a
software-driven intelligent internet company. Ultimately FF aims to
become a User Company by offering a shared intelligent mobility
ecosystem. FF remains dedicated to advancing electric vehicle
technology to meet the evolving needs and preferences of users
worldwide, driven by a pursuit of intelligent and AI-driven
mobility.
FORWARD-LOOKING STATEMENTS
This press release includes “forward-looking statements” within
the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995. When used in this
press release, the words “estimates,” “projected,” “expects,”
“anticipates,” “forecasts,” “plans,” “intends,” “believes,”
“seeks,” “may,” “will,” “should,” “future,” “propose” and
variations of these words or similar expressions (or the negative
versions of such words or expressions) are intended to identify
forward-looking statements. These forward-looking statements, which
include statements regarding the Company’s FX plans and goals,
bridge strategy, product optimization efforts and cost reduction
efforts, and planned entry into the Middle East, are not guarantees
of future performance, conditions or results, and involve a number
of known and unknown risks, uncertainties, assumptions and other
important factors, many of which are outside the Company’s control,
that could cause actual results or outcomes to differ materially
from those discussed in the forward-looking statements.
Important factors, among others, that may affect actual results
or outcomes include, among others: the Company’s ability to secure
the necessary funding to execute on its strategy, including its FX
strategy, which is substantial; the Company’s ability to continue
as a going concern and improve its liquidity and financial
position; the Company’s ability to pay its outstanding obligations;
the Company's ability to remediate its material weaknesses in
internal control over financial reporting and the risks related to
the restatement of previously issued consolidated financial
statements; the Company’s limited operating history and the
significant barriers to growth it faces; the Company’s history of
losses and expectation of continued losses; the success of the
Company’s payroll expense reduction plan; the Company’s ability to
execute on its plans to develop and market its vehicles and the
timing of these development programs; the Company’s estimates of
the size of the markets for its vehicles and cost to bring those
vehicles to market; the rate and degree of market acceptance of the
Company’s vehicles; the Company’s ability to cover future warrant
claims; the success of other competing manufacturers; the
performance and security of the Company’s vehicles; current and
potential litigation involving the Company; the Company’s ability
to receive funds from, satisfy the conditions precedent of and
close on the various financings described elsewhere by the Company;
the result of future financing efforts, the failure of any of which
could result in the Company seeking protection under the Bankruptcy
Code; the Company’s indebtedness; the Company’s ability to cover
future warranty claims; the Company’s ability to use its
“at-the-market” program; insurance coverage; general economic and
market conditions impacting demand for the Company’s products;
potential negative impacts of a reverse stock split; potential
cost, headcount and salary reduction actions may not be sufficient
or may not achieve their expected results; circumstances outside of
the Company's control, such as natural disasters, climate change,
health epidemics and pandemics, terrorist attacks, and civil
unrest; risks related to the Company's operations in China; the
success of the Company's remedial measures taken in response to the
Special Committee findings; the Company’s dependence on its
suppliers and contract manufacturer; the Company's ability to
develop and protect its technologies; the Company's ability to
protect against cybersecurity risks; and the ability of the Company
to attract and retain employees, any adverse developments in
existing legal proceedings or the initiation of new legal
proceedings, and volatility of the Company’s stock price. You
should carefully consider the foregoing factors and the other risks
and uncertainties described in the “Risk Factors” section of the
Company’s Form 10-K for the year ended December 31, 2023 filed with
the Securities and Exchange Commission (the “SEC”) on May 28, 2024,
as amended on May 30, 2024, and June 24, 2024, as updated by the
“Risk Factors” section of the Company’s first quarter 2024 Form
10-Q filed with the SEC on July 30, 2024 and other documents filed
by the Company from time to time with the SEC.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241106444696/en/
Investors (English): ir@faradayfuture.com Investors
(Chinese): cn-ir@faradayfuture.com Media:
john.schilling@ff.com
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