Faraday Future warns it may not be able to deliver its luxury EV

The electric vehicle startup has raised a going concern warning. The company said that it doesn't know if it will be able to continue operating over the next year, and that it doesn't know when it will deliver its first FF 91 luxury EV.

The delivery of the FF 91s has been delayed before. The company was forced to push its start of production and first deliveries to the third and fourth quarter due to supply chain issues. The company doesn't think deliveries will happen in 2022.

The timing of deliveries will be affected by a number of factors, including whether suppliers meet their deliverables, the success of certification testing, and the effectiveness of the company's headcount reductions. The biggest concern is whether Faraday will be able to get the funds it needs to make it through the year.

After signing a financing deal with Yorkville Advisors Global, the company got a potential $350 million lifeline to help it launch its vehicle. $200 million is the initial commitment from the investment firm. Up to $100 million in funding was secured by Faraday in September. It seems that access to future cash isn't enough to keep the company out of trouble.

In order to continue operations and support the ramp-up of production of the FF 91, the company will need additional funds beyond the year 2022, according to Monday's filing.

The company has incurred total losses from operations, negative cash flows from operating activities and an accumulated deficit of more than $3 billion since it was founded.

The startup ended the third quarter with less cash than at the end of last year. The quarter's net losses are about a third of the losses reported in the third quarter of the previous year.

The stock of the company is down over 85% so far this year.

Since going public through a merger, the company has faced controversy. A short seller report by J Capital alleged that Faraday had made a number of false statements.

The company restructured its board, cut the pay of two executives and suspended at least one. The US Securities and Exchange Commission issued subpoenas to several executives after the investigation confirmed that employees made inaccurate statements to investors.