Faraday Future Reports $355.8M Net Loss for 2024, Revenue Declines to $539,000

Faraday Future Intelligent Electric Inc. (FFAI) reported a net loss of $355.8 million for the year ended December 31, 2024, compared to a net loss of $431.7 million in 2023. Revenue decreased from $784,000 in 2023 to $539,000 in 2024, primarily due to a decrease in automotive sales revenue from $771,000 to $495,000, while automotive leasing revenue increased by an immaterial amount. The number of vehicles delivered also decreased from ten in 2023 to six in 2024. Cost of revenue increased significantly from $42.6 million to $84.0 million, primarily due to higher depreciation expenses and greater corporate cost absorption into inventory.

Research and development expenses decreased substantially from $132.0 million to $25.2 million, reflecting a shift in focus from R&D to production and a reduction in personnel. Sales and marketing expenses also decreased, from $22.8 million to $9.3 million, primarily due to lower compensation and general expenses. General and administrative expenses decreased from $82.9 million to $43.2 million, mainly due to lower professional service fees and insurance costs. Significant non-operating losses were recorded, primarily due to changes in the fair value of notes payable, warrant liabilities, and derivative call options, as well as losses on the settlement of notes payable.

During 2024, FFAI launched its second brand, Faraday X (FX), targeting the affordable EV market with vehicles priced between $20,000 and $50,000. The company also established a Middle Eastern sales entity in Dubai and entered into several financing agreements, including a Master Lease Agreement and a Waiver Agreement with certain noteholders. Significant milestones included the delivery of FF 91 vehicles to various customers and the signing of agreements with Asian OEMs for the co-development of FX models. The company also experienced a cybersecurity incident related to employee interactions with suspicious websites, which was promptly contained with no material impact.

As of December 31, 2024, FFAI employed approximately 249 people globally, with 202 in the U.S., one in the UAE, and 43 in the PRC. The company's financial forecasts rely heavily on management's assumptions and analyses, and the company acknowledges substantial doubt about its ability to continue as a going concern without additional capital. The company's significant risks include insufficient liquidity, limited operating history, substantial losses, dependence on suppliers, and intense competition. The company also faces risks related to its operations in China, including regulatory changes and foreign exchange restrictions.

FFAI's outlook remains uncertain, contingent upon securing additional funding to support its operations and the production of both the FF 91 and FX series vehicles. The company is actively pursuing various funding alternatives but acknowledges the significant risks associated with its current financial position and the challenges of operating in a highly competitive and rapidly evolving electric vehicle market. The company's ability to achieve profitability and long-term sustainability depends on successfully executing its strategic plans and mitigating the numerous risks identified in its 10-K filing.