Faraday Future Intelligent Electric Inc. (Nasdaq: FFIE), a pioneering California-based global leader in intelligent electric mobility, revealed its financial performance for the fourth quarter and full year ending December 31, 2023.
Fourth Quarter and Full Year 2023 Results
In fiscal 2023, FF marked its inaugural year of revenue alongside a reduced operating loss and cash usage in operations, while enhancing its balance sheet compared to fiscal 2022. These achievements were driven by substantial cost reductions and disciplined cost management.
FF recorded revenue of $0.8 million for 2023, with cost of goods sold at $43 million, in contrast to no revenue and cost of goods sold in 2022. This reflects the commencement of vehicle deliveries in the third quarter of 2023. The operating loss for 2023 stood at $286 million, a notable improvement from $437 million in 2022, attributed to a significant decrease in operating expenses, totaling $244 million in 2023 compared to $437 million in 2022. This improvement primarily stemmed from reduced research and development expenses as the company concluded product development and shifted focus towards sales fulfillment through manufacturing and production. The net loss also saw improvement, totaling $432 million for 2023 compared to $602 million for 2022.
Total assets as of December 31, 2023, amounted to $531 million, slightly up from $529 million in 2022, while total liabilities decreased to $302 million from $328 million in 2022.
Cash utilized in operating activities for 2023 was $278 million, a decrease from $383 million in 2022, with capital expenditures at $31 million compared to $123 million in 2022. The cash balance at the end of 2023 was $4 million, including restricted cash of $2 million, compared to $17 million in 2022. As of May 23, 2024, the company’s cash position stood at approximately $5 million, including restricted cash of $2 million.
In pursuit of future growth, FF continues to seek significant strategic investors and explore equipment- and IP-backed financing to potentially reduce reliance on dilutive funding. The company does not intend to issue additional shares until it receives shareholder approval to increase the total authorized share count.
Matthias Aydt, Global CEO of Faraday Future, remarked, “2023 marked a pivotal year for FF. We transitioned to a growth phase focused on production and revenue generation, solidifying FF’s position in the ultra-luxury and high-performance EV market. Looking ahead, I am enthusiastic about our prospects as we remain committed to growth through efficiency enhancements and expansion into new markets, continuing to enhance both our product offerings and shareholder value.”
Key Company Highlights in 2023
During 2023, FF launched a leasing program in collaboration with Luxury Lease Partners, obtained a Bureau of Automotive Repair license, introduced a home charging installation program, and implemented a public charging program, all aimed at providing a seamless and customer-centric experience for users.
The company also announced its potential entry into the Middle East market, forging strategic cooperation agreements with Master Investment Group and Siraj Holding LLC. This move would add a third dimension to the company’s geographic strategy, complementing its presence in the U.S. and China.
FF additionally embarked on a collaboration with the Abu Dhabi Investment Office (ADIO) to introduce generative AI and advanced intelligent electric vehicle capabilities to the UAE’s Smart and Autonomous Vehicles Industry (SAVI) cluster.
