Could Generative AI Save the Day for Faraday Future amid Production Issues?

Faraday Future would add generative AI to its FF 91 Futurist model even as the company battles production and funding issues and a languishing stock price.

In its release, Faraday Future said, “Through this Generative AI Product Stack, the Company has integrated its foundational AI capabilities with advanced models such as ChatGPT, GPT-4, and others from companies such as OpenAI and Microsoft.”

Notably, last month the company pushed back the delivery timeline for its first model amid production and funding issues.

It said, “certain of the Company’s suppliers informed the Company that they will be unable to meet the Company’s timing requirements and, therefore, the Company has updated the timing for the start of deliveries for its FF 91 vehicle, and the previously announced three-phase delivery plan.”

Faraday Future said that it would begin the delivery process at the end of May. However, it added that the deliveries are “subject to timely receipt of sufficient financing and parts and completion of required crash.”

The company had only $29.8 million cash which includes $1.5 million restricted cash.

Faraday is not the only startup EV company battling such issues and many peers are facing similar problems.

Lordstown Motors has warned of bankruptcy after Foxconn threatened to walk out from the financing deal.

Faraday Future to Add Generative AI to Its Cars

Amid the production and funding issues, Faraday Future is betting on generative AI to revive its fortunes.

Many companies see a massive opportunity in generative AI.

• Read our guide on the best AI stocks

Prashant Gulati, Head of Corporate Strategy at Faraday Future said, “We have been investing in software, AI, and human machine interaction for a long time and that places us in a unique position to utilize these advances in AI.”

He sounded positive about the company’s capacity to incorporate AI into its vehicles. He mentioned, “Only the FF 91 features an industry-leading computing platform… and a Generative AI Product Stack that will allow users to progressively use advanced generative models for various personalized applications in the car.”

Meanwhile, Wall Street wasn’t sold on Faraday adding generative AI to its cars and the stock fell to an all-time low yesterday.

EV Startups Are Feeling the Heat

There was a flurry of new listings in the EV space between 2020 and 2021. The most notable of these was Nikola in 2020 and at its peak, its market cap rivaled that of Ford.

In 2020 only, SPI Energy, an obscure renewable energy company, soared over 4,000% intraday after announcing plans for an EV foray.

• Read our guide on buying renewable energy stocks.

In 2021, Rivian Motors’ market cap surpassed $150 billion amid the EV euphoria.

However, things have turned upside down now, and all the startup EV companies are running way behind on production timelines and are facing a cash crunch.

Chinese EV maker Xpeng Motors recently said that only 10 EV companies would survive by the end of this decade.

Far from the euphoria of 2020 and 2021, investors are now wary of backing loss-making startup EV companies like Faraday Future which is reflected in their sagging stock prices.

While generative AI in Faraday Future’s first EV model sounds interesting, the company still needs to deliver its first vehicle to customers before markets gauge the utility of the technology in its vehicles.

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