electric vehicle Startup SPAC gone Faraday Future has raised a continuity warning, according to regulations filings. The company said it has great doubts about whether it will be able to continue operating over the next year, adding that it is uncertain when it will send out the first shipments of its FF 91 luxury electric car.
This isn’t the first time Faraday Future has delayed deliveries of the FF 91s. In July, the company Paid production start And the first delivery of the third and fourth quarters, due to supply chain problems and lack of money. Now, Faraday says he doesn’t expect deliveries in 2022.
As of November 17, Faraday had 369 pre-orders, down from 399 refundable, non-binding deposits paid through June 30, according to the company.
Faraday cited several conditions that will affect the timing of delivery, including whether suppliers meet their milestones, the timing and success of certification testing and the implementation and effectiveness of the company’s headcount reductions. Topping the list of worries is whether Faraday will be able to secure the money he needs to get him through the year, let alone get to the first deliveries.
Last week, Faraday got potential $350 million lifeline to help her launch her car when she signed a financing deal with Yorkville Advisors Global. The equity line of credit includes an initial commitment of $200 million from the investment firm. in September, Faraday also earned up to $100 million Funded by Hong Kong holding company Senyun International. However, it appears that reaching terminal liquidity is not enough to keep Faraday out of hot water in the near term.
In Monday’s filing, Faraday said “it may require additional funds during the remainder of 2022 and will require additional funds after 2022 in order to continue operations and support increased production of FF 91 to generate revenue to put the company on a path to cash flow break-even.”
Since Faraday’s founding, the company has incurred total losses from operations and negative cash flows from operating activities and has an accumulated deficit of $3.3 billion.
The startup finished the third quarter with $31.76 million in cash, down from $121 million at the end of last year. Net losses for the third quarter amounted to $103.4 million, which is about a third of the losses recorded in the third quarter of 2021.
Faraday’s stock is down 6.79% today and more than 94% this year.
The company has been battling controversies ever since appearing to the community By merging with Property Solutions Acquisition Corp. In July 2021. Months after it came to light, a short seller report from J Capital alleged that Faraday had made a number of inaccurate statements.
that internal probe Then, prompting the company to restructure its board of directors, cut the salaries of two senior executives, and at least one other suspension. The investigation confirmed that employees made inaccurate statements to investors and that “the company’s culture failed to adequately prioritize compliance,” which led to the SEC’s issuance Call notes to many executives.