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Faraday Future Is Overhauling Its Financial Picture To Become Profitable
The ambitious Faraday Future is examining its financial housekeeping in order to become a profitable company sooner. This is desperately needed because to date it has mainly proven to be a money pit.
For years, few of Faraday Future’s grand plans seemed to come to fruition, but the first FF 91 was recently delivered. Now it is important for the American-Chinese company to improve its financial situation in order to keep its head above water in the long term and, if all goes well, to become profitable one day. That is why the company is tightening its belt somewhat. Faraday Future reports that it will save on personnel costs and ‘other general administrative expenses’ not related to the FF 91. The company is also becoming more cautious about borrowing money for future products. In short, a slightly less risky course and more focused on sustainable income.
The bottom line, it probably means that expanding the model range will be put on the back burner. The electric hypercar that the company was looking forward to seven years ago will probably not be available for a while. It is also questionable whether Faraday Future will come up with an electric commercial vehicle. For the time being, Faraday Future’s plans seem to be well received; on the Nashdaq it is rewarded with a small plus.
