Faraday Future, maker of the long-delayed FF91 EV, upped its fundraising commitment again, reporting on Tuesday that its second-quarter operating losses more than quadrupled.
The company reported an operating loss of $137 million for the second quarter, compared with $28 million in the year-ago period. Overall, the second quarter financial report paints a bleak picture.
With no vehicle to sell yet and little prospect of generating revenue in the near term, the company has warned several times this year that it is running out of money.
The perennially struggling company now has even less cash on hand, reporting roughly $121 million at the end of the second quarter, down from $505 million reported at the start of the year.
Faraday said in a statement that it “anticipates that it will require additional funds by early September 2022 to continue operations and will also need to raise additional financing throughout the remainder of 2022 and beyond 2022 to to help increase production of FF 91 to generate revenue to put the Company on a path to cash flow profitability.”
Lack of funding is just one of the obstacles delay the launch from the beleaguered automaker’s first vehicle. Faraday’s future has been threatened multiple times since its founding in 2014, but the company has persisted in its vision and launched as a public company in July 2021. through a SPAC merger with Property Solutions Acquisition Group.
Just in the second quarter, the company ousted founder and former CEO Yueting Jia as CEO, began proceedings to force the former lieutenant governor of Nevada from its board and came under US Department of Justice reviewstemming from an SEC investigation into whether Faraday misled investors.
It also narrowly avoided being delisted from Nasdaq by filing its overdue 2021 annual report and first-quarter 2022 financial results in May. The fact that Faraday reported its second quarter results should encourage investors.
“Importantly, we have also become current with our financial statements and regained compliance with NASDAQ listing requirements,” CEO Carsten Breitfeld said in a statement on Tuesday. “Fundraising efforts are underway and we currently expect to deliver the FF 91 to customers in the third or fourth quarter of 2022.”
The company said it had 399 “fully refundable, non-binding, paid deposits” for the FF91 as of June 30. The new production start and first deliveries of the FF91 have been pushed back to the third or fourth quarter of 2022.
Despite the turmoil, Faraday has big plans for the future, including a goal opened a factory in China in the middle of the decade to build two more models: the FF 81 sedan and the FF 71 smart last-mile delivery vehicle.