On the evening of July 16th, Faraday Future (Faraday Future, hereinafter referred to as “FF”) announced that the company has signed a financing agreement worth approximately $105 million, including $82 million in newly obtained financing commitments. According to the official statement, the new financing mainly comes from existing institutional investors, including the company’s Middle Eastern strategic partner Master Investment Group—a Dubai-based investment firm owned by Sheikh Abdulla Al Qassimi from Ras Al Khaimah, UAE. Additionally, some new institutional investors also participated in this round of new financing.
Securing financing is of great significance for FF, as it determines whether the company can operate smoothly, especially for the on-schedule execution of the plan for FF’s second brand, FX. FF explained that compared with its recent previous financings, the terms of this new financing are more favorable to the company. After the financing is in place, the company expects to have sufficient funds to launch the new FX Super One model, and plans to use these funds to accelerate the development and delivery of products under the FF and FX brands as well as AI-related technologies, and speed up the production and delivery of the FX Super One.
Looking back at FF’s history in automobile manufacturing, FF began its car-making journey in May 2014, when Jia Yueting officially founded the FF brand in California, the United States. Its first mass-produced electric vehicle, the FF 91, was unveiled in January 2017 but did not hit the market until May 2023. Surprisingly, the total delivery volume of the FF 91 has been less than 30 units since its delivery began. The sluggish market performance of the FF 91 has also directly led to a huge gap in FF’s financial reports. Simply put, it is almost impossible for FF to get rid of its predicament by relying on the FF 91, a luxury car priced as high as 2 million yuan. For this reason, FF has pinned its hopes on its second brand—Faraday X (hereinafter referred to as “FX”), which was launched in September 2024. Focusing on “extreme cost-effectiveness”, FX aims to create AI EV products with “twice the performance at half the price” and develop best-selling smart electric vehicles (AI EVs), mainly targeting the U.S. market. At present, FX has planned three models, including the “Super One” (a First Class AI-MPV product), FX5, and FX6. Among them, the expected price range of FX5 is $20,000-$30,000, and that of FX6 is $30,000-$50,000. On the same day, FF announced the global premiere of the FX Super One, Super EAI F.A.C.E., and FF EAI Embodied Intelligence 6×4 technology architecture, which will be livestreamed globally at 10:30 a.m. Beijing time on July 18th.
Currently, the FX project is advancing at an accelerated pace, with the goal of rolling off the first vehicle by the end of this year. According to FF’s disclosure, the number of paid B-end (for commercial users such as enterprises and institutions) orders for the Super One has reached 4,800 units. Previously, Jia Yueting had repeatedly expressed high expectations for the FX brand. Whether the FX Super One can become a best-selling model in the U.S. market in the future remains unknown, but the prerequisite for FX to achieve its goals as scheduled is that FF must obtain financial support. FF has also repeatedly emphasized that whether FX can achieve the goal of rolling off the first vehicle by the end of 2025 depends on whether FF can secure the necessary funds. However, in 2024, FF’s total financing amount was $76.7 million, which exceeded the total of FF’s annual operating and investment cash outflows, but FF still faces a huge debt gap.
The latest financial report shows that in the first quarter of this year, FF’s operating revenue was $300,000, mainly from the delivery and leasing of the FF 91; the net operating loss was $43.8 million, which was roughly the same as the $43.6 million in the same period of the previous year; the total operating expenses were $22.8 million, a decrease of $200,000 compared with the same period of the previous year. For reference, FF’s net loss in 2024 was $355.8 million, of which $206.4 million came from non-operating losses and non-cash expenses; the operating loss was $149.7 million, a year-on-year decrease of 47.7%; the operating cash outflow was $70.2 million, a year-on-year decrease of 75%.
Regarding FF’s acquisition of this $105 million financing, Jerry Wang, Global President of FF, said: “With our efficient operations, we plan to maximize the role of this fund to further promote the realization of our strategy, provide cost-effective EAI EVs for the U.S. general public, and become a leader in this market.”
