Faraday Future (FFAI, Financial) has enhanced its business-to-business co-creation ecosystem model by securing a new binding pre-order agreement. This deal involves a non-binding reservation and a significant non-refundable deposit of $30,000 for 300 vehicles. This latest development follows an earlier announcement of a non-binding pre-order for 1,000 units destined for a car dealership in New York City.
The recent agreement was made with Sky Horse Auto, a California-based provider specializing in mobility solutions. The deposit, already paid, ensures that up to 300 FX vehicles will be delivered with priority. This reservation indicates favorable market acceptance across the United States, reaching users on both the east and west coasts.
FFAI Key Business Developments
Release Date: March 28, 2025
- Net Loss from Operations (Q4 2024): $30.3 million, a 55.3% improvement from $67.8 million in Q4 2023.
- Operating Cash Outflow (Q4 2024): $18.4 million, a 51.3% decrease from $37.8 million in Q4 2023.
- Financing Cash Inflows (Q4 2024): $25 million, nearly matching $26.6 million in Q3 2024.
- Full Year Net Loss (2024): $355.8 million, primarily driven by non-operating and non-cash items.
- Loss from Operations (Full Year 2024): $149.7 million, improved from $286.1 million in 2023.
- Operating Cash Outflow (Full Year 2024): $70.2 million, a 75% improvement from $278.2 million in 2023.
- Cost of Revenue Increase: $41.4 million year-over-year, due to higher depreciation expenses.
- R&D Expenses Decrease: $106.8 million, due to lower salary, headcount, and engineering costs.
- Sales and Marketing Expenses Decrease: $13.6 million, due to reductions in compensation and advertising spend.
- General and Administrative Expenses Decrease: $39.7 million, due to reductions in professional service fees and insurance costs.
- Cash Funding Received (2024): $76.7 million to support growth and innovation initiatives.
- Retail Shareholder Base Growth: Increased by 163% since mid-2023.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Faraday Future Intelligent Electric Inc (FFAI, Financial) reported a significant improvement in financial performance, with a 47.7% reduction in operating loss compared to 2023.
- The company successfully regained full NASDAQ compliance, reflecting improved governance and financial health.
- FFAI secured $76.7 million in cash funding throughout 2024, supporting growth and innovation initiatives.
- The launch of the new FX brand aims to make high-performance electric vehicles more accessible and affordable, targeting a broader market segment.
- FFAI has established strategic partnerships with major OEMs, enhancing its production capabilities and market reach.
Negative Points
- Despite improvements, FFAI still reported a net loss of $355.8 million for the full year 2024, primarily driven by non-operating and non-cash items.
- The company faces significant risks including supply chain disruptions, market competition, and regulatory changes.
- FFAI's reliance on Chinese parts and supply chains could be impacted by import tariffs, affecting cost advantages.
- The company delivered only six vehicles in 2024, reflecting a cautious approach to scaling production.
- FFAI's strategy involves significant collaboration with Chinese OEMs, which may pose geopolitical and operational risks.
