FFAI

Faraday Future is not an operating business in any investable sense; it is a serial cash-burner whose own 10-K states it 'do[es] not have sufficient liquidity to pay our outstanding obligations and to operate our business and will likely file for bankruptcy protection if we are unable to access additional capital.' After eleven years and roughly $4.71B of accumulated deficit, FY2025 revenue was $536K — a rounding error that actually shrank 0.6% YoY — against a $391M net loss. With $97.8M of negative gross profit, the company loses money on the handful of vehicles it sells before any operating expense. Gross margin of -18,240% is not a typo; it is the signature of a company that has effectively never reached commercial production at scale.

The balance sheet is past stressed and into insolvent: stockholders' equity is -$27.3M, so liabilities exceed assets and the liabilities/equity ratio (-9.88x) is meaningless except as a flag of negative book value. The only bright spot, $34.9M of cash (up from ~$7M), is dwarfed by FY2025 operating cash burn of -$108M — well under four months of runway at the prior pace, which is precisely why the filing leans on 'significant unfunded commitments' from affiliated note purchasers (MHL, V W Investment) who themselves 'have limited assets.' Survival depends entirely on continuous dilution: shares outstanding exploded +4,372% to 320M, and even after that the stock is $0.26, a sub-cap penny name on Nasdaq facing perpetual delisting risk.