California-based electric vehicle (EV) firm Faraday Future (FF) has recently released data regarding pre-orders for its FF 91 model, showing a total of just 300 units backed by a paid deposit, The Paper reported on Wednesday.
According to a company employee, FF’s vehicle pre-orders include both paid and free pre-orders. The company has collected more than 14,000 FF 91 bookings overall, as well as necessary information regarding those who have pre-ordered the car.
“Our 300 invitation-only limited edition FF 91 Futurist Alliance Edition models are all sold out, showing that the public believes in FF and our unbeatable products and technology positioning,” said a firm representative. The managing employee also said that FF is very satisfied with the booking volume, especially given the lack of significant marketing expenditure. With a series of marketing plans, the company is confident it will see a continued increase in vehicle bookings.
On February 2, the official SEC website showed that a special committee composed of the independent board of directors of FF had completed an investigation and submitted 8-K documents to the SEC. According to these documents, only 100 of FF’s 14,000 FF 91 orders have been paid. The document particularly emphasizes that this may be misleading.
The statement by FF means that only 300 vehicle reservations have actually been followed up with a paid deposit, while another 14,000 orders are free bookings with no payments made so far. This practice is uncommon among emerging vehicle companies – even industry leader Tesla requires a minimum deposit of $1,000 for a reservation.
According to the relevant staff member at FF, due to the special market positioning of the FF 91 model, its target sales volume is lower than that of some competitors’ mass-produced vehicles, so the booking methods are different. “The bookings reflect user interest in the FF 91 model, and all consumers that booked the vehicle are regarded as high-potential car owners.”
FF has faced scrutiny from market analysts before. On October 7, 2021, J Capital Research published a report on FF, claiming that it would be impossible for the firm to sell a single car. The special committee of FF’s independent board of directors said there was no evidence to support such allegations.
Following the investigation, FF announced structural changes on February 2. Due to certain deficiencies in the company’s management and culture, Brian Krolicki, the company’s former chairman of the board, stepped down, succeeded by Susan Swenson. Carsten Breitfeld, CEO of FF Global, and Jia Yueting, co-founder, chief product and user ecology officer of FF, will both now report directly to Swenson. Both Breitfield and Jia have received a 25% reduction in their base salary.
In addition, FF announced Wednesday that it has signed a contract with Myoung Shin Co., Ltd., an automotive manufacturer headquartered in South Korea, to produce the FF 81, FF’s second car model, which is scheduled to start production in 2024. The new model is an EV positioned for a broader mass market, with a user experience is tailored to a wider audience compared to the ultimate intelligent luxury FF 91 model, scheduled to be launched in the third quarter of 2022.