Faraday Future's Business Update and Strategic Developments
TapTechNews July 31 news, TapTechNews learned from the official Weibo of Faraday Future (FF) that the company released a business update today, highlighting key strategic developments and operational progress, including re-compliance with Nasdaq's requirements for timely filing of financial reports.
In terms of the financial update for the first quarter of 2024, Faraday Future said the company continued to work hard to control costs and reduce operating expenses:
The operating expenses significantly decreased to 22.9 million US dollars, compared to 95.8 million US dollars in the same period last year.
The operating loss narrowed significantly to 43.6 million US dollars, compared to a loss of 95.8 million US dollars in the same period last year.
The cash flow situation generated from operating activities improved significantly, with a net expenditure of 14.7 million US dollars, compared to a net expenditure of 103 million US dollars in the same period last year.
As of March 31, 2024, the company's book assets were 499.9 million US dollars, liabilities were 298.4 million, and net assets were 201.5 million US dollars.
As of July 30, 2024, the company has issued 441.3 million Class A common shares, while as of May 17, 2024, this data was 439.7 million shares.
Faraday Future also said that the company launched an innovative China-US auto bridge strategy, marking the company's formal return to the dual-brand strategy. As part of FF's dual-home strategy, FF will use its unique bridge value to integrate the advantages of the US auto industry with the advantages of Chinese auto companies and their respective supply chains. This strategy aims to establish a second mass-market brand through cooperation with Chinese OEMs and parts suppliers. FF plans to use its unique AI and software technology to create attractive value for the AI electric vehicle mass market by purchasing and transforming parts.
Faraday Future said that the company has made progress in strategic financing. Once a strategic investor is introduced, it will help improve the production capacity and delivery of FF 91. In addition, incremental funds can also support the implementation of FF's China-US auto industry bridge strategy. The company will continue to optimize operational efficiency to support sustainable development and continuously evaluate the current cost reduction and expenditure efficiency, including daily operating costs and the production cost of FF 91.
Faraday Future finally stated that recently, the company obtained the approval of the Nasdaq hearing panel for continued listing, but it needs to return to compliance by the specified deadline. By submitting the first-quarter financial report 10-Q as of March 31, 2024, FF has met one of the compliance deadline requirements.
Earlier today, Jia Yueting, the founder and chief product and user ecosystem officer of Faraday Future, posted a video on Weibo, stating that its automotive products will mainly be targeted at the US and other countries, and said that BYD is not our competitor. Jia Yueting said: BYD is not our competitor, because our second market mainly targets the US and other countries. In the US, who do we compete with? How to compete with General Motors, how to compete with Ford, how to compete with BMW, Mercedes-Benz, Volkswagen, especially the low-end products launched by Volkswagen. Everyone also knows that the automotive industry is not an industry with a strong network effect, and the brand concentration in the automotive industry will become higher and higher, but not too few. At least the U S can tolerate five brands, and I believe FF will become one-fifth with its most unique characteristics.