Faraday Future - No revenue yet?

But, until this very day, it is still a company without revenue.

The company was founded by Chinese businessman Jia Yueting, who is currently bankrupt.

What has happened to the company? And how does it survive without recording revenue?

EV is an asset-intensive business to kickstart.

And to attract capital to start up a plant, EV companies usually develop a prototype to gain traction and recognition.

Only then, it can raise capital either via debt or venture capital.

Faraday Future had a prototype and was going through capital-raising exercises to build a plant.

But with financial setbacks, the plans to build a plant were scrapped.

The company somehow went public through a reverse merger with a SPAC.

It did not go well, as the company is -97% below its IPO price.

In its latest Q1'23 Shareholder Letter, FFIE announced that they are starting production of their flagship FF 91 vehicle.

The target first phase delivery will be at the end of May.

But just a few days ago, it announced a reverse stock split and delays it EV deliveries.

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