The EV start-up has been on the brink of bankruptcy a few times before.
The company delayed the first deliveries of its FF91 luxury SUV indefinitely.
Faraday Future’s stock lost 94% of its value this year.
Many of the new automotive companies that have been created in the last decade as a part of the EV boom are still struggling financially, and one of them recently announced having “substantial doubts” about its viability.
Faraday Future is an American EV start-up that has yet to produce its first vehicle despite having been founded back in 2014.
The launch of the FF91 electric luxury SUV had been planned for the last quarter of 2022 despite previous reports of financial trouble, but now, the company delayed the first deliveries indefinitely.
This is because Faraday Future says it needs more capital in order to continue operations after its stock lost 94% of its value since the beginning of the year.
In addition to investors being scared away, many reservation holders also seem to have abandoned the brand since it now only has 369 pre-orders instead of the 399 it had announced at the end of June.
Not being able to deliver its vehicles yet also means that Faraday Future is spending large amounts on development without having a source of income. This is why the company reported having only $31,76 million in the bank at the end of the third quarter despite registering $121 million only three months earlier.
The increase in lithium prices and the supply chain crisis that affect the entire automotive industry has also not been kind to the company, making it even more difficult to bring the FF91 to market.
Only the future will tell if Faraday Future is able to secure enough funding to be able to launch its first SUV and avoid bankruptcy.
Let’s remember that even better-established EV start-ups such as Rivian and Lucid Motors have yet to make a profit despite having been delivering cars for close to a year now.