After years of delay, lack of capital and internal drama that threatened the company’s existence, FF 91 Futurist SUV by Faraday Future finally starts production. The all-electric car is said to be fast, futuristic and affordable, which could make it a big hit among consumers. However, with high expectations and a challenging history so far, Faraday Future may have plenty of work left before it can truly compete in the automotive industry.
Recent reports indicate that production of the Faraday Future FF91 has been pushed back to June. With only a few months remaining in 2018, the company needs to start producing cars if they want to meet their original goal of selling 1 million vehicles by the end of the year.
While the company received the initial $135 million from investors in February, it is still awaiting funds from other sources in order to begin production. If all goes as planned, production will start March 30. With its target market being a devoted fan base of wealthy individuals who are not afraid to dish out big money for high-class automobiles, it will be interesting to see how well Faraday Future fares once it begins shipping cars off the assembly line.
Given the company’s recent history of receiving funding, CEO Xuefeng Chen is confident that the funds will be received in a timely manner. Although it is still early in the process, he remains optimistic that a resolution to the bitcoin civil war will be reached and investment can commence again.
The Ford F-series is America’s #1selling vehicle and the FF 91 intends to make sure it remains at the top. The all-new FF 91 will boast an updated design that is says to be more comfortable and stylish than ever before. Not only will the FF 91 be a force to reckoned with on the road, but its ability to seat up to 8 people means that it can easily accommodate large groups of friends or family.
Despite a rather dismal earnings report, Faraday Future shares rose in after-hours trading about 0.44% as investors seemed positive about the production update. The company’s future seems to hinge on its ability to produce high-quality and affordable electric cars, something that is unlikely to be easy given Tesla’s formidable market position.
Apparently, Faraday Future is having some major financial troubles. In fact, the company didn’t even generate any revenue in the fourth quarter or 2022 for that matter. Instead, its operating expenses were $451 million in 2022 compared to $354.1 million in the previous year. This likely stemmed from increased engineering, design and testing costs – something that should be kept in mind for future investors because it could signal a problem down the line.
Given its high expenses and large net losses, it is no surprise that the company has been struggling financially in recent years. While this outlook may dampen shareholders’ enthusiasm for the company’s future, analysts believe that there are opportunities to improve profitability through cost-cutting and other strategic initiatives.
Given that FF has spent so much money on capex and R&D in the past few years, it’s good to see that their cash position is improving. It’s unclear if FF plans to use this cash to continue spending on R&D or to pay down debt, but either way the company is in good shape.
Since the start of production problems at Tesla’s manufacturing plant in Fremont, California have continued to mount, CEO Elon Musk has declared that the company will turn a profit in Q3 2017–a significant turnaround for a company whose management was doubtful just four months ago that it would be able to continue operating. This news follows reports of increased production and Model 3 ownership by early reservation holders, as well as assurances from key suppliers that they are still ramping up production.
Despite the many challenges, Faraday was optimistic about the FF 91’s potential. CEO Adrian Mills repeatedly told employees that 2018 would be their “year” and that first deliveries were inevitable. But despite the company’s best efforts, things didn’t look good by March; suppliers hadn’t met their delivery benchmarks and certification testing still wasn’t complete. Worse yet, headcount reductions had slowed productivity and created discord among team members. With no end in sight to2018’s seemingly never-ending string of problems, it appeared as if Faraday might not even make it to its first deliveries – let alone achieve profitability by year’s end.
On January 26th, the company board ousted CEO Carsten Breitfeld and appointed Xuefeng Chen, a former and longtime Chery Jaguar Land Rover executive who most recently led Faraday Future’s China division, as its new leader. This came less than a week after Chen was reported to have clashed with employees over bonus plans. In light of the tumult at Faraday Future, some analysts have raised questions about whether or not Chen is up to the task of turnaround.
Since going public, Faraday Future has experienced a slew of delays and drama. The company originally planned to start production and deliveries in the third and fourth quarter of 2022, but admitted that there were supplychain issues and a lack of money. It’s still unclear when the company will finally be able to deliver on its promises.