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Faraday Future shares crash 38% as company revokes 2024 production outlook

Published 29/05/2024, 10:52
© Reuters.
FFIE
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(Updated - May 29, 2024 5:49 AM EDT)

Faraday Future Intelligent Electric (FFIE) is withdrawing its production target guidance for the year, marking the latest electric vehicle (EV) maker to ring alarm bells about market conditions.

The company’s shares crashed 38% in premarket trading Wednesday.

The EV manufacturer said this decision is driven by current market conditions and funding levels and comes less than two months after Fisker withdrew its outlook for vehicle sales of 20,000 to 22,000 this year.

Faraday announced roughly six months ago its plans to reach phase 3 EV delivery to the general market by the end of the first quarter. Not long afterward, the company said it was "prioritizing cash flow breakeven over volume to avoid scaling production too quickly."

The automaker reported a loss of $431.7 million in 2023, with revenue of $784,000 and costs of goods sold amounting to $43 million. As of December 31, Faraday Future's cash balance stood at $4 million, including restricted cash of $2 million, compared to $17 million a year earlier.

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