Luxury electric car company Faraday Future, which has a manufacturing plant in Hanford, now has a deficit of $3.8 billion.
In its latest report to the Securities and Exchange Commission, the company expressed doubt about its ability to continue to operate.
The big picture: Faraday Future reported a $78 million net loss for the third quarter of 2023, bringing its deficit to $3.874 million since it was founded in 2014.
- The company’s stock fell to $0.46 on Monday, a drop of 98 percent in one year.
- Car sales continue to struggle as the company brought in $550,000 with just a handful of cars from March through September.
- That includes delivering three vehicles to high-profile customers who purchase the cars at a discount and promote them on social media.
- Faraday Future also has struck a deal to buy and lease back its manufacturing plant in Hanford, per the report.
What we’re watching: The company expects to manufacture 1,000 vehicles next year, according to the report.
- Faraday Future is hopeful that China will provide immense opportunity since the country accounts for 65 percent of global battery electric vehicle sales.
A dreary outlook: “Based on its recurring losses from operations since inception and continued cash outflows from operating activities, the Company has concluded that there is substantial doubt about its ability to continue as a going concern for a period of one year from the date that these Condensed Consolidated Financial Statements were issued,” the report reads.
