Electric vehicle start-up Faraday Future Intelligent Electric Inc (NASDAQ:FFIE) has announced a “masterplan” aimed at reducing costs and dependence on external funding, driving shares higher after hours.
Faraday said it would look to meaningfully reduce operational costs, including people and administrative expenses, as part of the plan.
This includes costs not directly related to the development of its FF 91 2.0 Futurist Alliance hypercar, which will now be supported by “insourcing [...] where feasible”.
No new convertible loan commitments that mirror the structure of its existing financing would be made either, the California-based company added.
“Executing on this masterplan will support achieving cash-flow positive and profitability,” a statement read.
Having reported a net loss of US$124.9 million in the second quarter, Faraday has struggled to source funding for the development of its hypercar, causing its share price to fall over 95% this year.
As of the end of the quarter, Faraday’s cash reserves sat at US$19.4 million, including US$1.5 million in restricted cash.
Monday evening’s announcement did prompt a positive response though, with the shares climbing after hours.
“Faraday Future continues its forward momentum and has undergone a fundamental transformation compared to the end of 2022,” the group added.