After years of struggle with development, financing, and production, Faraday Future delivered the first FF 91 2.0 EVs in 2023.
Production of the FF 91 2.0 luxury all-electric model started in March 2023. The model was priced at $309,000 and poised to compete with brands such as Bentley and Rolls-Royce. The first unit was delivered in August 2023—some six years after the original target of 2018.
Get Fully Charged
Faraday Future Entered The Market
In 2023, Faraday Future started production and delivered its first model, the FF 91 2.0. However, with only a handful of vehicles delivered, the main question is what now? Will the business survive and become profitable? This is rarely the case among EV startups.
According to Faraday Future's recent financial reports (Form 10-K via Teslarati), in 2023, the FF 91 2.0 sales amounted to only four units, while an additional six were leased. This brings us to 10 units total.
However, it's worth noting that Faraday Future's total revenues in 2023 amounted to just $784,000, not even matching four cars times $309,000. We assume that it might have something to do with agreements with the EV users, which are getting $150,000 to $475,000 for "consulting, branding, and other arrangements":
"While the Company has announced that its first users of the FF 91 2.0 Futurist Alliance have joined or are currently considering participating in the FF owner-developer co-creation project, as of December 31, 2023, FF had only sold four and leased six vehicles. These user developers also entered into consulting, branding, and other arrangements with FF in exchange for fees ranging from approximately $150,000 to $475,000."
At the same time, auto sales cost amounted to $42.6 million (more than $4 million per vehicle), leading to a total net loss of about $432 million (compared to $602 million in 2022).
That's a difficult position, but the company says that it is "committed to increased production and deliveries while maintaining financial discipline."
The report says that as of December 31, 2023, the number of non-binding, fully refundable pre-orders in the U.S. and China amounted to 303. It could be a different number now, but even at a 100% sales rate, it would be less than $100 million in revenues.
This is why we wonder how Faraday Future intends to turn a profit. For reference, the Rolls-Royce Spectre sold 326 units globally in Q4 2023 (its first quarter on the market). Its base price in the U.S. is $420,000.
Faraday Future wrote, "Given current market conditions and current levels of funding the Company is withdrawing its production target guidance for 2024". The Middle East is one of the potential new markets mentioned in the report.
The time will tell whether the Faraday Future FF 91 2.0 will find its niche. The model has a tri-motor, all-wheel drive powertrain and a 142-kilowatt-hour battery for an EPA range of 381 miles. It has a top speed of 155 mph and can accelerate from 0 to 60 mph in 2.27 seconds.
