Electric vehicle (EV) startup Faraday Future Intelligent Electric on Thursday pushed back initial deliveries of its flagship FF 91 Futurist by another two months, saying they would depend on “substantial additional funding”.
The Los Angeles-based company said it was down to about $30 million in cash as of Tuesday and that deliveries of the SUV, its first production model, will depend on “sufficient” financing, timely receipt of parts from suppliers. such as completing the necessary crash tests.
Still, the company said its first vehicle will roll off the production line on Friday, and shares rose 13% to $0.31. They hit a high of $1.32 in February after the funding announcement and have fallen 80% since then. Faraday Future said Thursday that it is in talks with other potential investors to secure funding.
Many electric startups, including Nikola and Lordstown Motors, are still grappling with supply chain bottlenecks caused by the pandemic and have been looking for funds to continue production as a weaker economic outlook has dented consumer sentiment.
Faraday Future is struggling with cash shortages
Faraday Future is struggling with cash shortages and a board reshuffle following a governance dispute with one of its biggest shareholders, FF Top Holding. Last November, Faraday Future raised doubts about its ability to continue as a “going concern”.
But in February, the company managed to secure enough funding to start production of the FF 91 Futurist last month, after a long delay.
Deliveries originally scheduled to begin in late 2022 have been pushed back to late April. On Thursday, the company said that some customers who paid in full for the vehicle in May will be able to start receiving the FF 91 from the end of June.
The further delay would “help mitigate any shortfalls in production capacity against expected market demand,” the company said, adding that its suppliers were unable to meet the earlier schedule.
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