Faraday Future Q1 operating loss widens, plans to start production of second model in 2024

Faraday Future Faraday Future Intelligent Electric Inc (NASDAQ:FFIE) announced its financial results for the first quarter of 2022 ended March 31, 2022, after the market hours on Monday, EST. The company reported an operating loss of $149 million for the first quarter, compared with $19.396 million for the same period a year earlier, and a net loss of $153 million, compared with a net loss of $75.53 million for the same period a year earlier. Q1 loss per share was $0.48, unchanged from the same period a year earlier.

According to the report, Faraday Future's Q1 operating expenses were $149 million, compared to $19.396 million in the same period last year, of which research and development expenses were $115 million, compared to $6.72 million in the same period last year. On the balance sheet, Faraday Future had total assets of about $706 million as of March 31, 2022, including $276 million in cash.

Since its inception, the company has incurred cumulative losses and negative cash flow from operations, and as of March 31, 2022, the company had a cumulative deficit of approximately $3 billion," the company said in its earnings report. The company expects to continue to incur significant operating losses for the foreseeable future, as we will continue to incur expenses until we generate meaningful revenue."

The company stated that the increase in operating loss is primarily due to an increase in Engineering, Design and Testing ("ED&T") as a service, as the company rehired vendors and made significant purchases for ED&T services to advance FF 91 development, combined with a significant increase in headcount and employee-related expenses, as well as an increase in professional services primarily related to the Special Committee investigation and an increase in professional services related primarily to the Special Committee investigation.