Faraday Future FF 91 only has 401 reservations. Not 14,000
When you make a bed as spacious, luxurious and mobile as the FF 91, it’s inevitable that you’ll want to sleep in it, isn’t it? This is what Faraday Future does, but not as expected. The eight-year-old but still fledgling automaker spent the first quarter livestreaming the FF 91 production launch and then sparring with the U.S. Securities and Exchange Commission (SEC) over misrepresentations. on how many reservations it had for FF 91. Previous claims alleged 14,000 reservations, with outsiders expecting people to drop $5,000 to get the first Futurist Alliance Edition trim or $1,500 for packing the slightly less frilly futuristic trim. Thanks to the first quarter financial reports, we now know that the real number is 401 reservations. It appears that the 14,000 figure was a measure of “indications of interest”, otherwise known as raised hands, and did not involve money changing hands.
This is the part where startups learn, publicly, that making cars is hard. Even Tesla had its moments, and many of them, but they seem so far away. Compare Faraday Future’s backlog with the 200,000 reservations for the Ford F-150 Lightning, planned Cadillac Lyriq production running out for model years 2022 and 2023, and Volkswagen and Mercedes-Benz admitting they can at barely meet the demand for electric vehicles.
Making cars is also very expensive. Faraday Future is taking the appropriate steps to put its first model into production later this year at its factory in Hanford, California. The price of this march to Job One is a cumulative loss of 3 billion dollars since the beginning of the whole adventure. Net loss in the first quarter of 2022 was $153 million, compared to $76 million in the first quarter of last year; the first quarter operating loss was $149 million, compared to $19 million in the first quarter of last year. We are told that the budget has blown due to development costs, salary costs, and design and testing services. The outfit has total assets of $706 million, including $276 million in cash, a bright spot considering total liabilities are just $271 million, down from $340 million at the start of the l ‘year. Investors, who should be adept at this dance by now, have been warned that the good times are well on the way behind a painful drudgery known as “significant” losses.
With its freshly printed dealer and distributor license provided by California, Faraday Future is clear to sell vehicles online in most of the country. If he can coax 5% of those reservation holders into FF 91 buyers at an assumed MSRP of around $180,000, that’ll put 20 cars on the road. A 10.5-year lease on a storefront in Beverly Hills, Calif., will put more emphasis on the product in an area where dropping six figures on a new toy is just something you do between shooting. personal training mid-morning and lunch. There is also a signed contract to put the second product into production by 2024, the “high-volume” FF 81 to be built by South Korean Myoung Shin. It might as well be another dimension, though. Starting, ramping up and sustaining production in the current climate by Q3 will take everything the company has.