(Yicai Global) March 9 -- Faraday Future Intelligent Electric, a smart electric carmaker set up in the Unites States by Chinese businessman Jia Yueting, said its net loss widened 7 percent last year and the company plans to start delivering its first vehicles next month.

The net loss was USD552 million in the 12 months ended Dec. 31 due to higher engineering, design, and testing costs, as well as changes in the fair value of some notes payable and share option liabilities, the automaker said in an earnings report released yesterday. Operating expenses jumped 27 percent to USD451 million.

Last year’s performance brings the California-based firm’s total losses to almost USD3.5 billion, according to Yicai Global’s calculations.

In pre-market trading in New York today, Faraday Future’s shares [NASDAQ: FFIE] were down 1.3 percent at 51 US cents apiece as of 6.28 a.m. local time, after tumbling 8 percent yesterday.

Faraday Future said it had about USD18.5 million in cash and restricted cash by 2022, but said the firm’s financial situation has improved this year. Since December, the firm has received USD111.6 million in funds for the Standard Operating Procedure and will receive another USD38.4 million to USD58.4 million. Cash reserves had risen to USD37.5 million as of March 3.

If Faraday Future receives funds from investors in time and suppliers meet requirements, it plans to produce its flagship model, the FF 91 Futurist, at its plant in Hanford, California, from March 30, the company said. The first batch will then roll off the assembly line early next month, and deliveries will start before the end of the same month.

As Faraday Future’s first mass-produced car, the FF 91 Futurist is aimed at the ultra-luxury market. Its unit price is expected to be USD250,000. It began taking reservations in March 2021.

But it is still unclear whether Faraday Future is qualified to sell vehicles in the US. On the company’s the earnings conference call, when asked whether it was qualified to sell vehicles in the US, executives did not give a definitive answer. 

They explained that vehicle testing is still in progress, and some results will come out this month while other results will not be available until next month. But before deliveries start, all US requirements must be met.

In terms of selling the FF 91 Futurist in China, Faraday Future said it plans to start producing the model late this month and start deliveries next month.

Editor: Peter Thomas