Core Viewpoint - Faraday Future is attempting to pivot its strategy by introducing a new sub-brand, Faraday X, aimed at producing more affordable electric vehicles priced between $20,000 and $50,000, in contrast to its previous focus on premium vehicles like the FF 91, which costs over $300,000 [1][2][5]. Group 1: New Product Strategy - The company plans to launch the FX 5 and FX 6 models, priced from $20,000 to $30,000 and $30,000 to $50,000 respectively, along with the Super One minivan, which currently has an undetermined price [2]. - The Super One is being marketed as a "luxury AI MPV" and is positioned to fill the gap between high-end minivans and super-luxury SUVs, with a focus on comfort and advanced technology [3][4]. Group 2: Market Position and Challenges - Since its SPAC merger announcement in 2021, which valued the company at $3.4 billion, Faraday Future has faced significant challenges, resulting in a current market capitalization of $94 million and an enterprise value of $203 million [5]. - The company's stock has seen a dramatic decline, down 92% over the past year and 43% year-to-date in 2025 [5][7]. Group 3: Brand Recovery Efforts - The recent CES presentation and prototype reveal are seen as efforts to restore brand awareness and trust after a series of controversies and operational failures [6]. - The CEO expressed a desire for a fresh start with the Faraday X initiative, emphasizing resilience and the opportunity to prove the company's capabilities [6].

Company Developments - The company delivered the first FF 91 2.0 Futurist Alliance in 2023 and launched its second brand, Faraday X, focused on affordable electric vehicles priced between $20,000 and $50,000[332][333]. - The company plans to produce and deliver the FF 81, a premium mass-market electric vehicle, subject to future financing, to compete against models like the Tesla Model S and BMW 5-series[322]. - The company aims to develop a Smart Last Mile Delivery vehicle to target high-growth delivery opportunities in Europe, China, and the U.S., leveraging its modular Variable Platform Architecture[324]. - The company has updated its corporate strategy to include a China-U.S. Automotive Bridge Strategy, aiming to establish a second mass-market brand in collaboration with China-based OEMs[325]. - The company is transitioning its production capabilities to include both luxury and more affordable electric vehicles, aligning with broader market demand[398]. Financial Performance - Total revenue decreased by $0.5 million (98%) to $9,000 for the three months ended September 30, 2024, compared to $551,000 in the same period in 2023[372]. - Cost of revenues increased by $5.3 million (33%) to $21.5 million for the three months ended September 30, 2024, compared to $16.1 million in 2023[375]. - Research and development expenses decreased by $16.4 million (76%) to $5.2 million for the three months ended September 30, 2024, compared to $21.6 million in 2023[377]. - Sales and marketing expenses decreased by $2.7 million (51%) to $2.6 million for the three months ended September 30, 2024, compared to $5.3 million in 2023[379]. - General and administrative expenses decreased by $15.7 million (66%) to $8.3 million for the three months ended September 30, 2024, compared to $24.0 million in 2023[381]. - The company reported an accumulated deficit of $4,193.1 million and an unrestricted cash balance of $7.3 million as of September 30, 2024[425]. - The company reported net cash used in operating activities of $51.8 million for the nine months ended September 30, 2024, an improvement of $188.6 million compared to $240.4 million for the same period in 2023[443]. - Total revenue decreased by $0.2 million to $0.3 million for the nine months ended September 30, 2024, a decline of 45% compared to the same period in 2023, driven by reduced automotive sales revenue[396]. - Cost of revenues increased by $40.4 million to $63.1 million for the nine months ended September 30, 2024, a rise of 177% compared to the same period in 2023, primarily due to higher depreciation expenses[397]. Capital and Funding - The company entered into a Junior Securities Purchase Agreement for $30.0 million, consisting of $22.5 million in cash and $7.5 million converted from a prior loan, with a 10% interest rate and warrants for 5.7 million shares[334]. - The company entered into a co-investment agreement to establish a regional headquarters in Ras Al Khaimah, UAE, with operations expected to begin by late 2025 or early 2026[342]. - The company has substantial doubt about its ability to continue as a going concern for the next year due to recurring losses and cash outflows from operations[422]. - The company projects substantial additional funds will be required to continue operations and support production of the FF 91, with potential bankruptcy if additional capital is not secured[432]. - The company is exploring various funding and financing alternatives to support ongoing operations and production ramp-up, facing delays in securing additional funding commitments[433]. Legal and Compliance Issues - The company is currently involved in various legal proceedings that could have a material adverse effect on its business and financial condition[478]. - The company identified material weaknesses in internal control over financial reporting, which could lead to material misstatements in financial statements[458]. - The company lacks sufficient professionals with appropriate accounting knowledge, impacting its ability to analyze and disclose accounting matters accurately[459]. - The company has engaged external consulting resources to assist in improving the internal control environment and compliance activities[468]. Management and Strategy - The company appointed Koti Meka as Chief Financial Officer and Aaron Ma as Acting Head of EV R&D to advance its dual-brand strategy[343]. - The company has implemented new accounting policies and procedures to improve communication and accountability across departments[467]. - The remediation plan for internal control weaknesses is expected to extend beyond December 31, 2024, with significant costs anticipated[474]. - The company has adopted an Insider Investment Reporting Policy to enhance internal reporting of related party transactions[467]. Operational Challenges - The company faces substantial doubt about its ability to continue as a going concern, relying on various funding mechanisms to support ongoing operations[348]. - The company sold a total of five vehicles and leased nine vehicles through September 30, 2024, indicating a need for substantial additional capital to develop products and fund operations[348]. - The company began production of the FF 91 Futurist in March 2023 and started deliveries in August 2023, but did not sell any vehicles and leased out two vehicles during the three months ended September 30, 2024[350].

Financial Data and Key Metrics Changes - Operating expenses decreased by 92.6% to $3.8 million compared to $50.9 million in the prior year's quarter, reflecting ongoing cost control initiatives and a nonrecurring gain of $14.9 million from the settlement of previously accrued R&D costs [30] - Loss from operations improved to $25.2 million compared to a loss of $66.4 million in the prior year quarter [31] - Total assets as of September 30, 2024, were $449 million, total liabilities were $292.3 million, and cash at the end of the quarter was $7.3 million [32] Business Line Data and Key Metrics Changes - Two FF91 2.0 vehicles were delivered during the third quarter, bringing total deliveries to 14 vehicles to date [14] - Manufacturing improvements included bringing certain vehicle body and interior component production in-house, reducing interior costs by half [15] Market Data and Key Metrics Changes - The U.S. EV penetration rate remains below 20%, but range extender AIEVs have shown strong adoption in other markets, indicating a potential opportunity for the planned FX product lineup [20] Company Strategy and Development Direction - The company is focused on transforming from a project-driven to an operation-driven organization with an emphasis on cost optimization and operational efficiency [9] - The launch of the FX brand targets mass market segments, with two initial models planned in the $20,000 to $50,000 range [19] - The company aims to strengthen core operations, advance the dual brand strategy, and pursue strategic partnerships to support growth objectives [24] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of achieving profitability and becoming self-funding in the shortest possible time [35] - The dual brand strategy is expected to leverage high-value traditional FF brand with Chinese OEMs to gain economies of scale [36] Other Important Information - The company regained full Nasdaq listing requirements compliance and completed a reverse stock split [13] - A co-investment agreement was established with Master Investment Group to set up a regional headquarters in Ras Al Khaimah [22] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating the end of the Q&A session without further inquiries [42]

Faraday Future Intelligent Electric Inc. (Nasdaq: FFIE) Fiscal Third Quarter 2024 Earnings Presentation November 6th, 2024 © 2024 FARADAY FUTURE PROPRIETARY AND CONFIDENTIAL Table of Contents 2 01. Company Overview 02. Business Update 03. The FF 91 2.0 Futurist 04. Faraday X 05. Financials 06. Imagery © 2024 FARADAY FUTURE PROPRIETARY AND CONFIDENTIAL Legal Disclaimers 3 Forward Looking Statements This presentation includes "forward looking statements" within the meaning of the safe harbor provisions of the ...

Investment and Development - Faraday Future has invested $3.0 billion to develop its EV platform and AI technology[3] - The company aims for an annual production capacity of 10,000 vehicles[3] - Faraday Future launched its second brand, Faraday X, targeting mass market segments with models priced between $20,000 and $50,000[8] - The company has entered preliminary agreements with four OEMs for the development of the Faraday X brand[8] - The company aims to empower users to co-create an AIEV (Artificial Intelligence Electric Vehicle) with an extreme cost-experience ratio, targeting growth in the untapped AIEV market[15] Financial Performance - The company reported a revenue of $21,453 thousand for the three months ended September 30, 2024, compared to $551 thousand for the same period in 2023, indicating a significant increase[24] - The gross profit for the three months ended September 30, 2024, was $(21,444) thousand, while for the same period in 2023, it was $(15,580) thousand, reflecting a worsening in gross profit margin[24] - Operating expenses for the three months ended September 30, 2024, totaled $50,867 thousand, compared to $56,618 thousand for the same period in 2023, showing a decrease in operating expenses[24] - The net loss for the three months ended September 30, 2024, was $(77,686) thousand, slightly improved from $(78,046) thousand in the same period of 2023[24] - Research and development expenses for the three months ended September 30, 2024, were $5,180 thousand, down from $21,593 thousand in the same period of 2023, indicating a reduction in R&D spending[24] Manufacturing and Deliveries - In Q3 2024, Faraday Future completed a $30 million financing round, resulting in net proceeds of approximately $28.5 million[7] - Two FF 91 2.0 vehicles were manufactured and delivered in Q3 2024, bringing total deliveries to 14 vehicles[7] - Manufacturing improvements have reduced interior costs by approximately 50% and improved inspection findings by 25% compared to the previous quarter[7] - The FF 91 2.0 Futurist features a tri-motor system with an EPA-rated range of 381 miles and 1,050 HP[10] Strategic Initiatives - A regional headquarters is planned in Ras Al Khaimah, with construction expected to commence by the end of 2024[9] - The company has established a user ecosystem with a focus on direct online sales and co-creation strategies, aiming to enhance customer engagement and conversion rates[14] - The company plans to launch two hit models in the first phase of its product rollout, targeting a price range of $20,000 to $50,000[13] Assets and Liabilities - The total current assets as of September 30, 2024, were $79,685 thousand, compared to $91,364 thousand as of December 31, 2023, indicating a decrease in current assets[20] - The total liabilities as of September 30, 2024, were $292,330 thousand, compared to $302,303 thousand as of December 31, 2023, showing a reduction in total liabilities[23] Leadership and Innovation - Faraday Future has strengthened its leadership team with key appointments to drive product innovation and market expansion[6]

Core Points - Univest Securities, LLC announced the first closing of a convertible note offering for Faraday Future Intelligent Electric Inc. totaling approximately $30 million [1][2] - The offering consists of a previously funded $7.50 million and $22.50 million of new investment in the form of convertible notes and warrants [2] - The conversion price for the convertible notes is set at $5.24 per share, while the exercise price for the warrants is $6.29 per share [2] Company Overview - Faraday Future is positioned as a pioneer in the intelligent electric vehicle market, aiming to disrupt traditional ultra-luxury car manufacturers [6] - The company focuses on creating a shared intelligent mobility ecosystem, integrating advanced electric vehicle technology with software-driven solutions [6] - Faraday Future's mission is to evolve into a User Company, catering to the changing needs and preferences of users globally [6]

Core Viewpoint - Faraday Future is increasing salaries and bonuses for its CEO and founder despite financial struggles and minimal vehicle sales [1][2][3] Group 1: Executive Compensation - CEO Matthias Aydt's salary will increase from $400,000 to $700,000, with additional bonuses totaling $1.2 million and stock grants worth over $4 million [1] - Founder Jia Yueting's salary will rise from $450,000 to $680,000, along with a $500,000 bonus and stock grants exceeding $4 million [1] - Both executives will initially receive pro-rated salaries of $550,000 and $612,000, respectively, and must invest at least $340,000 in company shares [3] Group 2: Financial Condition - The company ended Q2 2022 with only $793,000 in unrestricted cash and recently secured $22.5 million in financing through convertible notes and warrants [2] - Faraday Future has sold only 13 cars in its 10-year history and faces allegations of faking sales, leading to whistleblower lawsuits [2] - The company has laid off or furloughed hundreds of employees, with remaining staff on significantly reduced salaries [2] Group 3: Regulatory and Operational Challenges - Faraday Future is under investigation by the Securities and Exchange Commission, receiving two subpoenas in the first half of the year [3] - The company nearly faced eviction from its Los Angeles headquarters in February 2024 but reached an agreement with the property owner [2]

Financial Data and Key Metrics Changes - Operating expenses improved significantly to $29.9 million compared to $49.4 million in the prior year quarter [13] - Loss from operations improved to $50.6 million compared to a loss of $56.0 million in the prior year quarter [13] - Cash from operating activities improved to a $29.1 million outflow compared to an outflow of $160.7 million in the six months ended June 30th, 2023 [14] - The company had $457.9 million of assets, $309.2 million of liabilities, and a book value of $148.7 million at quarter end June 30th, 2024 [14] - Approximately $15.5 million of gross financing was raised through convertible debt during Q2 2024 [14][15] Business Line Data and Key Metrics Changes - The company delivered two more FF 91 2.0 EVs since June, bringing the total to 13 vehicles delivered to date [9] - The cost of interior parts has been cut by more than half due to in-house production of vehicle body and some interior components [10] Market Data and Key Metrics Changes - The establishment of a Middle Eastern sales entity in Dubai marks an important milestone in the company's expansion plans [11] - The company is exploring opportunities in the Middle East, including strategic financing and business development [11] Company Strategy and Development Direction - The new China-U.S. Automotive Bridge Strategy aims to leverage AI and software technology across multiple market segments [5][7] - The company plans to establish a second mass market-focused brand by collaborating with China-based OEMs and part suppliers [7] - The focus remains on stabilizing operations and achieving profitability in the shortest possible time [16] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the path ahead and confidence in achieving and exceeding objectives [17] - The company believes that the biggest barrier to vehicle sales and profitability is the capital required to produce vehicles at scale [15] Other Important Information - The company continues to seek strategic financing to support production ramp-up and the development of the China-U.S. Automotive Bridge Strategy [8] - The company remains compliant with Nasdaq's reporting requirements [8] Q&A Session Summary - The conference call concluded without a Q&A session, as indicated by the operator's closing remarks [18]

Patents and Production - As of June 30, 2024, the company has been granted approximately 660 patents globally[289]. - The company started production of the FF 91 Futurist and delivered the first FF 91 2.0 Futurist Alliance in 2023[289]. - The planned B2C passenger vehicle pipeline includes the FF91 series, FF81 series, and FF71 series[289]. - The FF 81 is expected to compete against the Tesla Model S and similar vehicles, while the FF 71 is designed to compete with the Tesla Model 3 and BMW 3-series[290]. - The company began delivering its first electric vehicle, the FF 91 Futurist, in the third quarter of 2023, following the start of production in April 2023[325]. - Automotive sales revenue was $0.3 million for the three months ended June 30, 2024, as vehicle deliveries began in the third quarter of 2023[324]. - Automotive sales revenue was $0.3 million, with the first electric vehicle, the FF 91 Futurist, starting production in March 2023[345]. Financial Performance - Revenue for the three months ended June 30, 2024, was $0.293 million, a significant increase from $0 in the same period in 2023[323]. - Revenue for the six months ended June 30, 2024, was $0.3 million, a significant increase from $0 in the same period in 2023[344]. - Cost of revenues for the three months ended June 30, 2024, was $20.97 million, compared to $6.613 million in 2023, resulting in a gross profit loss of $20.677 million[323]. - Cost of revenues for the six months ended June 30, 2024, was $41.7 million, representing a 530% increase from $6.6 million in 2023[346]. - The net loss for the period was $108.685 million, compared to a net loss of $124.928 million in the same quarter of 2023, indicating an improvement[323]. - Loss from operations for the six months ended June 30, 2024, was $94.2 million, an improvement from a loss of $151.8 million in 2023[344]. - Loss on settlement of notes payable decreased to $58.4 million, a 68% reduction from $183.5 million in the same period last year[360]. Expenses and Cost Management - Research and development expenses decreased to $3.317 million from $25.269 million year-over-year, indicating a reduction in R&D activities[323]. - Research and development expenses decreased to $10.0 million for the six months ended June 30, 2024, down 88% from $83.1 million in 2023[348]. - Sales and marketing expenses were $1.782 million, down from $7.699 million in the previous year, reflecting cost control measures[323]. - Sales and marketing expenses dropped to $4.3 million, a 67% decrease from $12.8 million in the prior year[349]. - General and administrative expenses increased slightly to $17.201 million from $17.062 million, showing stability in administrative costs[323]. - General and administrative expenses were $31.0 million, down 29% from $43.6 million in 2023[350]. - A lease impairment loss of $7.5 million was recognized due to the termination of leases for a store and a research facility during the three months ended June 30, 2024[330]. Cash Flow and Liquidity - Net cash used in operating activities was $29.1 million for the six months ended June 30, 2024, a significant decrease from $160.7 million for the same period in 2023[386]. - Net cash used in investing activities was $0.3 million for the six months ended June 30, 2024, compared to $25.9 million for the same period in 2023, indicating a reduction in fixed asset acquisitions[387]. - Net cash provided by financing activities was $26.7 million for the six months ended June 30, 2024, down from $181.8 million for the same period in 2023[388]. - The company continues to experience negative cash flows from operations due to investments in R&D for electric vehicles and infrastructure development in the U.S. and China[385]. - The company reported an accumulated deficit of $4,115.4 million and an unrestricted cash balance of $0.8 million as of June 30, 2024[369]. - The company has commitments totaling $554.5 million under various SPA agreements, with $343.2 million funded and $211.3 million remaining to be funded as of June 30, 2024[370]. - The company’s primary source of liquidity is the issuance of various convertible note instruments due to restrictions on accessing the ATM Program[372]. Strategic Initiatives - The company plans to develop a Smart Last Mile Delivery vehicle to address high-growth delivery opportunities in Europe, China, and the U.S.[292]. - The company has updated its corporate strategy to include a China-U.S. Automotive Bridge Strategy, aiming to establish a second mass-market brand[293]. - A Middle Eastern sales entity was established in Dubai, U.A.E. on April 9, 2024[300]. - The company held an interactive investor Community Day at its Los Angeles headquarters on July 20, 2024[300]. - Nasdaq granted the company continued listing on Nasdaq subject to compliance with periodic reporting requirements by July 31, 2024[302]. Debt and Related Party Transactions - The company incurred a related party interest expense of $6.6 million for the six months ended June 30, 2024, reflecting a 9329% increase from the prior year[365]. - Related party interest expense increased significantly to $(1.5) million, a rise of $1.4 million or 2051% from $(70,000) in 2023, due to default on a related party note[341]. - As of June 30, 2024, the company had outstanding principal of $7.6 million and interest payable of $18.5 million related to its debt agreement with Chongqing Leshi Small Loan Co., Ltd.[377]. - The company has been in default on SPA commitments since April 2023 and is presenting related notes as current[377]. - The company has the right to issue and sell up to an additional $192.5 million of Class A Common Stock under the Standby Equity Purchase Agreement as of June 30, 2024[371]. Accounting and Estimates - Management's estimates for financial reporting are based on historical experience and reasonable assumptions, but actual results may differ significantly[392]. - There have been no changes to critical accounting estimates that have materially impacted the financial statements as of the date of this report[393]. - The effect of exchange rate changes on cash and restricted cash was immaterial for the six months ended June 30, 2024, compared to $5.6 million for the same period in 2023[389]. - The company did not have any off-balance sheet arrangements as of June 30, 2024[390].

Core Viewpoint - Faraday Future (NASDAQ:FFIE) is viewed as a poor investment opportunity, with potential for its stock to decline significantly, possibly to $0, due to lack of financial viability and shareholder returns [1][3]. Company Fundamentals - Faraday Future lacks the essential fundamentals of a successful automotive enterprise, failing to generate excitement among consumers [2][7]. - The company's vehicle pricing is excessively high, with models priced over $300,000, limiting accessibility to a small market segment [5][6]. - The design and branding of Faraday Future's vehicles, particularly the FF 91, are criticized for being unmemorable and lacking prestige [6][7]. Industry Context - The electric vehicle (EV) market has seen numerous failures outside of Tesla, with companies like Mullen Automotive and Canoo experiencing significant stock declines of over 93% and 86% respectively [3][4]. - The overall trend in the EV sector indicates that many competitors have struggled, suggesting systemic issues within the industry rather than isolated company failures [3][4]. Market Performance - Faraday Future's stock is expected to face challenges due to its poor fundamentals and the overall negative sentiment surrounding the EV market [6][7]. - The company is compared unfavorably to other failed EV ventures, indicating a broader trend of unsuccessful startups in the electrification space [3][4].