Faraday Future has announced this week they have “substantial doubt” about their ability to continue operating, given the company’s current financial situation.
The company has planned to complete the first deliveries of the FF91 later this year, but those plans have been delayed once again.
The FF91 was a great concept, but Faraday has struggled to attract massive pre-orders due to the numerous delays and other competitors entering the market.
As of November 17, the company only had 369 pre-orders for the FF91.
The financial issues do not come as a huge surprise, especially for those who have been paying attention. So far this year, the company’s stock is down 94 per cent.
Faraday also only has $31.76 million left in cash, down from $121 million from the previous quarter.
Due to the financial situation, the company would need additional funds to finance operations and ramp up production through 2022 and beyond, as reported by autoblog.
Nothing is super clear in terms of future plans for Faraday.
The company is facing rising costs of raw materials and depleting cash reserves, much like many EV startups.
Arrival SA, a British EV commercial startup, warned of a similar risk to operations earlier this month, so Faraday is not alone.
However, unlike Lucid or Rivian, Faraday has yet to produce a single vehicle for customer use.
There is hope things will turnaround, however for the FF91 to see the light of day, there might be a need for some major changes to the company and its structure.