Unlock Premium Data: Up to 50% Off InvestingProCLAIM SALE

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

Published 29/05/2024, 10:52
© Reuters.
(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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.