Global Automotive Stocks/EV Focus/Event Driven, SC Capital

SC Capital

Global Automotive Stocks/EV Focus/Event Driven

Over 22 years covering Japanese equities on both the sell side and the buy side. 

Bottom-up Japan Equities Research

Equity Bottom-Up

Faraday Future Intelligent Ele / Equity Bottom-Up

<ul>
<li>Fardaday Future (FF) announced it lined up at least $100m in funding from two investors but gave little detail. Deal is set to close on or before August 8th. </li>
<li>Given that it's a senior secured convert deal, we doubt more than $100m-$200m can be raised, despite FF's release saying the deal has capacity for $600m.</li>
<li>FF only had $222m in cash in April after -$173m in FCF in Q1. They need $1bn to last through 2023. Anything less than $600m in funding would be negative.</li>
</ul>


Fardaday Future (FF) announced it lined up at least $100m in funding from two investors but gave little detail. Deal is set to close on or before August 8th. 
Given that it's a senior secured convert deal, we doubt more than $100m-$200m can be raised, despite FF's release saying the deal has capacity for $600m.
FF only had $222m in cash in April after -$173m in FCF in Q1. They need $1bn to last through 2023. Anything less than $600m in funding would be negative.


Faraday Future (FFIE) Claims It Lined Up Funding but Details Are Vague

<ul>
<li>EV start-up Faraday Future released their delayed Q1 2022 results &amp; had some hair-raising disclosures on their first-ever earnings call. </li>
<li>Cash halved in the 3 months since Q4 2021 &amp; dropped another 20% as of April 30th. Faraday didn't deny that they have roughly a quarter's worth of cash left. </li>
<li>We can't see how Faraday raises cash in the current risk-adverse markets. And we don't see any assets worth buying them out for. Faraday is in need of a miracle. </li>
</ul>


EV start-up Faraday Future released their delayed Q1 2022 results &amp; had some hair-raising disclosures on their first-ever earnings call. 
Cash halved in the 3 months since Q4 2021 &amp; dropped another 20% as of April 30th. Faraday didn't deny that they have roughly a quarter's worth of cash left. 
We can't see how Faraday raises cash in the current risk-adverse markets. And we don't see any assets worth buying them out for. Faraday is in need of a miracle. 


Faraday Future (FFIE)--Hanging by a Thread With 3 Months of Cash Left

<ul>
<li>EV start-up Faraday Future (FF) will be de-listed by the Nasdaq if it fails to file its 2021 annual report &amp; Q1 2022 results by May 16th.   </li>
<li>FF has no revenues yet, but plans to start production in Q3. Cash as of March-end was only $273m vs cash burn of $181m &amp; payment obligations of $193m.</li>
<li>FF's growth strategy is risky &amp; relies on the ultra-luxury car market, which is peaking. Without financing, FF may struggle to survive this year.    </li>
</ul>


EV start-up Faraday Future (FF) will be de-listed by the Nasdaq if it fails to file its 2021 annual report &amp; Q1 2022 results by May 16th.   
FF has no revenues yet, but plans to start production in Q3. Cash as of March-end was only $273m vs cash burn of $181m &amp; payment obligations of $193m.
FF's growth strategy is risky &amp; relies on the ultra-luxury car market, which is peaking. Without financing, FF may struggle to survive this year.    


Faraday Future (FFIE): Not Looking So Bright

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

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Cross Asset Strategy

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United States

Faraday Future Intelligent Electric Inc. operates as a mobility ecosystem company. The Company develops mobility ecosystem that integrates clean energy, AI, internet, and usership models. Faraday Future Intelligent Electric serves customers worldwide.

Faraday Future Intelligent Ele (FFIE US)

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