Since last summer, Faraday Future has been a public company, and as such, it is required to publish financial statements. This past week, the California-based startup of Chinese businessman Jia Yueting reported first-quarter 2022 results, and some of them are discouraging.
For example, as of March 31, only 401 pre-orders had been received for the brand’s debut model, the FF 91 large crossover. Recall, we’re talking about an electric car that debuted as a prototype more than five years ago, and therefore is already well known (as much as possible) to all concerned. Just for comparison, the Ford F-150 Lightning electric pickup truck for the first 12 hours since its premiere collected 20,000 applications, and by now this number has increased tenfold.
“Faraday” is asking for a deposit of $1,500 for the base FF 91 Futurist and $5,000 for the “welcome” special edition FF 91 Futurist Alliance Edition. If the customer rejects the deal, the deposit amount is refunded in full, and it is far from certain that said four hundred and one order will be converted into actual sales.
In the first three months of this year, Faraday Future had an operating loss of about $149 million and a net loss of about $153 million. The company is spending money to pay off loans and prepare for the start of FF 91 production and is building up staff, but it’s not earning anything from the cars yet, because mass production of the electric cars won’t start until the third quarter. The report says equipment at the Hanford leased plant is on schedule.
In addition, in the first quarter of 2022, Faraday Future made a number of personnel changes; obtained a dealership license from California authorities to allow online sales of cars on a national level; and leased a building in Beverly Hills, which will house its flagship store. In addition, the startup has contracted with Korean firm Myoung Shin to produce its second model, the FF 81. Unless plans change once again, it will start rolling off the assembly line in 2024.