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Faraday's future, continue to "burn money for life"

Publish Date: 2022.08.20

"Thank you for your company on Weibo for nearly 13 years. This is an endless dark journey and a bright journey full of warmth, joy, happiness, friendship and true love. I will use the rest of my life to remember the latter forever."

法拉第未来,继续“烧钱续命”

In June this year, as a continuous entrepreneur who is the best talkshow speaker in the Internet industry, Luo Yonghao officially announced on his personal microblog, withdrew from all social platforms and re entered the AR industry.

In the farewell letter issued at the same time, he also frankly said: "because of some deviations and accidents, whether it is to pay off the remaining debts as soon as possible or to subsidize the families of the new companies that are doomed to lose money in the first few years, we will continue to receive advertising endorsements."

It is very interesting that under this microblog, Then a very real netizen commented: "I know that it is natural and proper to repay debts, and I am not a hammer fan. But in the current environment, compared with Jia Yueting's move, Lao Luo can make unremitting efforts to repay debts and shoulder his responsibilities, which is worth cheering for him. Lao Luo has his own wildness and tenacity. The past has passed, and I hope that heroes will rise again."

法拉第未来,继续“烧钱续命”

Indeed, as he said, in the current era, compared with knowing mistakes and being able to correct them, it is those who do not feel that they are making mistakes continuously that are really terrible.

Taking this as the measurement standard, Luo Yonghao undoubtedly belongs to the former part. The main character of the next article, Jia Yueting and the FF Faraday future founded by him, must belong to the latter part.

At this moment, I still clearly remember that on February 24, Eastern time, the first quasi mass production vehicle of FF 91 was officially rolled off the line in the Hanford factory, California.

In the one-and-a-half-hour live broadcast of its official video number, more bullets were seen, such as "boss Jia, come out to cut leeks again" and "suffocate for your dream again", with a strong sense of irony.

法拉第未来,继续“烧钱续命”

However, it must be admitted that with the arrival of key manufacturing nodes, this product, which has been repeatedly bounced and subjected to various doubts and criticisms, is still one step closer to delivery.

At the event site, Jia Yueting and Global CEO Bi Fukang personally drove the vehicle, which was located in the workshop of the factory. In the subsequent speeches, they also assured everyone that FF 91 would arrive as scheduled in the third quarter.

However, just at the beginning of this month, according to the information learned by Faraday's future officials, in addition to officially naming the Hanford factory in California as "FF iefactory California", Faraday also officially announced that the factory will produce FF 91 for the North American and Chinese markets again to ensure the delivery of the project in the third or fourth quarter.

However, it is quite subtle that the appearance of the words "or the fourth quarter" seems to indicate that this product, which has been a long time late, may continue to be postponed.

法拉第未来,继续“烧钱续命”

Just this week, Faraday futures announced its financial results for the second quarter of 2022. Data show that the company's operating loss in the second quarter was about 137 million US dollars, and about 28 million US dollars in the same period of the previous year; The net loss increased to about US $142 million, compared to about US $53 million in the same period of the previous year. Compared with the first quarter, the operating loss and net loss in the second quarter were narrowed, but they were still expanding year on year.

As for the current situation, Faraday future officials said that the main reason was the increase of engineering, design and testing services, the Company re hired suppliers and conducted a large number of procurement for testing services to promote the development of FF 91, as well as the number of employees and staff related expenses.

At the same time, it can be predicted that in the next one to two years, the company will expand its operating losses, because it will continue to generate a series of various expenditures before it can obtain truly meaningful income. In other words, "burning money for life" will still be the theme of Faraday's future.

法拉第未来,继续“烧钱续命”

In addition, it is noteworthy that on the same day when the financial report was disclosed, Faraday future announced that it had successfully signed a final agreement on a new financing mechanism. The financing plan of up to $600 million has reached $52 million. The company will continue to actively discuss potential high-value short-term financing with many investors.

Facing the positive impact, Bi Fukang said, "we are glad to see the company obtain new financing and sign relevant framework agreements to obtain considerable additional funds. We are working hard to complete this capital raising process to obtain sufficient new funds to launch FF 91 electric vehicles."

However, as a bystander, I still want to point out that compared with several new cars that have been listed or will be launched in the new energy super luxury market this year, FF 91 has no technical leadership.

法拉第未来,继续“烧钱续命”

Especially in the United States, where Tesla has become the sole player, and the other local new forces are building cars and the traditional car companies are fighting each other more and more fiercely, there are few opportunities left.

As a latecomer without any mass production experience, how can FF 91 guarantee to do better than the covetous first entrants in terms of vehicle details, texture, quality control and other dimensions valued by the target customer group? If not, how can consumers pay for it?

So personally, I always think that there are few opportunities left for FF 91, and even the future prospects of Faraday are becoming increasingly bleak.

Toss and turn, but there is no hope..

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