Faraday Future Narrowed Loss in Q2, Enters Revenue Generation Stage


Faraday Future Intelligent Electric, the electric-car startup based in Gardena, Calif., announced that it has narrowed its loss in the latest quarter and has entered its revenue generation stage. In the second quarter ended June 30, the company reduced its loss to $124.9 million, or 10 cents a share, compared to $141.7 million, or 44 cents a share, in the same period last year.

During the second quarter, Faraday reported no revenue. However, the company’s total operating expenses decreased significantly from $137.5 million to $49.4 million. This cost reduction was primarily due to declines in research and development as well as general and administrative costs.

Looking ahead, Faraday plans to triple its manufacturing team in the upcoming months by adding a second shift to support increased production volume. As a result, the company expects to generate cash from vehicle sales in the third quarter. Additionally, it intends to secure financing from existing commitments and effective registration statements to meet its cash needs during the ramp-up of vehicle production.

Furthermore, Faraday is exploring strategic financing and asset-based debt financing opportunities to further support its growth plans.

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