The electric vehicle (EV) industry has struggled amid a tough consumer economy, offering no reprieve for Faraday Future Intelligent Electric (NASDAQ:FFIE) and FFIE stock. Most recently, Faraday announced a reverse stock split — its second reverse split in only five months. While management has also revealed a “master plan” to revitalize the company, Faraday is suffering from some severe credibility challenges.On Sunday evening, Faraday announced its intention to implement a reverse stock split at a 1-for-3 ...

LOS ANGELES--(BUSINESS WIRE)--Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE) (“Faraday Future”, “FF” or “Company”), a California-based global shared intelligent electric mobility ecosystem company, today released an open letter from Matthias Aydt, Global CEO of FF, to share an updated master plan 1.1 for the growth of Faraday Future in 2024. Opportunities and Accomplishments I’m issuing this letter to align expectations as to where FF stands today and where we hope to lead FF in 2024. FF has made ...

The electric vehicle (EV) startup space is fraught with risk and uncertainty. The vast majority of U.S. EV startups are burning through cash at an alarming rate while struggling to deliver vehicles to market. Going up against established automakers with decades of manufacturing expertise and vast financial resources is a monumental challenge. However, a few EV startups stand out from the pack and are positioned to thrive in the coming years.As we head into the summer months, it’s time to take a hard look at ...

Struggling EV startup Faraday Future owes the landlord of its Los Angeles headquarters nearly $1 million after missing the last two months’ rent, TechCrunch has learned.The landlord, Rexford Industrial, filed a previously unreported lawsuit against Faraday Future this week in Los Angeles Superior Court that accuses the startup of missing its January and February lease payments, as well as associated maintenance fees and taxes. Rexford claims the startup owes it $917,887.26 as a result and is seeking to take ...

FF recently delivered an FF 91 2.0 Futurist Alliance to Motev, a leader in sustainable luxury transportation services that operates a fleet of luxury vehicles in Southern California. Pictured here are Robert Gaskill, CEO, Motev LLC (L), Tiffany Hinton, Chief Operations Officer, Motev LLC (C), Matthias Aydt, Global CEO of Faraday Future (R). (Photo: Business Wire)FF recently delivered an FF 91 2.0 Futurist Alliance to Motev, a leader in sustainable luxury transportation services that operates a fleet of luxu ...

Faraday Future Completes Nearly 1,600 OTA Upgrades and Product Enhancements on its FF 91 2.0, Including Many New Features Based on User R&D Co-Creation Feedback. (Photo: Business Wire)Faraday Future Completes Nearly 1,600 OTA Upgrades and Product Enhancements on its FF 91 2.0, Including Many New Features Based on User R&D Co-Creation Feedback. (Photo: Business Wire)LOS ANGELES--(BUSINESS WIRE)--Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE) (“Faraday Future”, “FF” or “Company”), a California-based ...

Faraday Future Intelligent Electric Inc. Third Quarter 2023 Earnings Release November 13, 2023 ...

Faraday Future Intelligent Electric, Inc. (NASDAQ:FFIE) Q3 2023 Earnings Conference Call November 13, 2023 7:30 PM ET Company Participants Jonathan Maroko - Interim CFO Matthias Aydt - Global CEO Conference Call Participants Michael Ward - The Benchmark Co. Stephen Gengaro - Stifel Laura Li - Deutsche Bank Operator Greetings, and welcome to the Faraday Future Intelligent Electric Third Quarter 2023 earnings call. At this time, all participants are in a listen-only mode. A brief question-and-answer session w ...

Patents and Technology - FF has been granted approximately 660 patents globally as of November 7, 2023[250]. - FF's advanced Internet Artificial Intelligence (I.A.I.) technology supports high-performance computing and Level 3 autonomous driving readiness[249]. - FF's modular Variable Platform Architecture (VPA) facilitates entry into the last-mile delivery segment, expanding its total addressable market[252]. Vehicle Production and Delivery - FF plans to produce and deliver the FF 81, a premium mass-market electric vehicle, subject to future financing, to compete against Tesla Model S and BMW 5-series[252]. - The FF 71, a mass-market passenger vehicle, is expected to start production and deliveries after the FF 81, targeting competition with Tesla Model 3 and BMW 3-series[252]. - The first FF 91 2.0 Futurist Alliance was delivered in the first half of 2023, marking the start of production for this ultra-luxury electric vehicle[250]. - The company began production of the FF 91 Futurist in March 2023 and started deliveries in August 2023[266]. - FF's B2C passenger vehicle pipeline over the next five years includes the FF 91 series, FF 81 series, and FF 71 series[250]. - All FF vehicles are expected to be available for sale in the U.S. and China, with potential expansion to European markets[253]. Financial Performance - Automotive sales revenue was $0.6 million for the three months ended September 30, 2023, marking the start of vehicle deliveries[282]. - Automotive sales revenue was $0.6 million for the nine months ended September 30, 2023, with vehicle deliveries starting during this period[304]. - The Company reported a net loss of $347.9 million for the nine months ended September 30, 2023, compared to a net loss of $414.7 million in the same period of 2022[303]. - The Company recognized a loss on settlement of related party notes payable of $17.2 million during the nine months ended September 30, 2023, with no prior period loss reported[320]. - The Company reported a loss on settlement of notes payable of $204.9 million for the nine months ended September 30, 2023, compared to a loss of $30.5 million in the same period of 2022, representing a 573% increase[319]. Expenses and Cost Management - The company incurred significant operating costs, including R&D expenses, capital expenditures, and selling and distribution expenses, impacting future profitability[264]. - Research and development expenses decreased by 60% to $104.7 million for the nine months ended September 30, 2023, due to the completion of R&D activities related to the FF 91 Futurist vehicle[308]. - Sales and marketing expenses increased by 12% to $18.1 million for the nine months ended September 30, 2023, attributed to higher professional services and resource allocation[309]. - General and administrative expenses decreased by 24% to $67.6 million for the nine months ended September 30, 2023, due to cost-saving measures and reduced professional services expenses[310]. - The company expects R&D expenses to decrease in the near future as it has substantially completed R&D activities related to the FF 91[273]. Capital and Financing - The Company has secured commitments totaling $513.5 million in convertible note financing since August 14, 2022, with $300.2 million funded to date[329]. - FF is exploring various funding alternatives, including equipment leasing and equity offerings, to support ongoing operations and production ramp-up[336]. - The company has an accumulated deficit of $3.87 billion and a cash balance of $6.7 million as of September 30, 2023[326]. - The company had net cash provided by financing activities of $237.6 million for the nine months ended September 30, 2023, a significant increase from net cash used of $40.9 million in the same period of 2022[348]. - The company had operating and financing lease obligations of $37.0 million as of September 30, 2023, with approximately $7.2 million due within the next 12 months[341]. Stock and Shareholder Actions - The board approved a reverse stock split ratio of 1-for-80, reducing the number of authorized shares of Common Stock to 154,437,500[260]. - The Class A Common Stock began trading on a split-adjusted basis on August 28, 2023, under the symbol "FFIE" with a new CUSIP number[261]. - FF sold 837,500 shares of Class A Common Stock for $7.3 million under the Standby Equity Purchase Agreement during the three and nine months ended September 30, 2023[333]. - The Company plans to issue up to $300 million in Class A Common Stock and/or warrants under a Shelf Registration declared effective on June 28, 2023[334]. Cash Flow and Liquidity - The company reported net cash used in operating activities of $240.4 million for the nine months ended September 30, 2023, compared to $355.1 million for the same period in 2022, indicating a reduction of approximately 32.3%[344][346]. - The company experienced negative cash flows from operations primarily due to investments in research and development, with $87.5 million allocated to R&D expenses for the nine months ended September 30, 2023[345]. - As of September 30, 2023, the company had cash on hand totaling $6.7 million, which is intended for working capital and general corporate purposes[342]. Debt and Liabilities - As of September 30, 2023, the company had outstanding notes payable to related parties totaling $12.2 million, with $3.8 million due on demand and $5.1 million scheduled to become due in December 2023[340]. - The company was in default on the Secured SPA Notes as of September 30, 2023, but the holders subsequently waived the default[338]. - The company has been in breach of its debt agreement with Chongqing Leshi Small Loan Co., Ltd., with an outstanding principal balance of $4.5 million, resulting in an increased interest rate of 18% per annum[338]. - The company had $135.1 million in aggregate principal amount of notes payable to third parties as of September 30, 2023, with $4.8 million due on demand[340].

Financial Data and Key Metrics Changes - Faraday Future reported an operating loss of $56.0 million for Q2 2023, a significant reduction from an operating loss of $137.5 million in Q2 2022, primarily due to decreased engineering and design costs as R&D activities were largely completed [16][17] - The net loss for Q2 2023 was $124.9 million, compared to a net loss of $141.7 million in Q2 2022, attributed to lower operating expenses [18] - Total assets increased to $567.5 million as of June 30, 2023, from $529.3 million at the end of 2022, while total liabilities decreased to $289.8 million from $328.3 million [18][19] - The accumulated deficit reached approximately $3.8 billion as of June 30, 2023 [18][22] Business Line Data and Key Metrics Changes - The company has transitioned from a project-based focus to operational efficiency, with plans to triple the manufacturing team and add a second shift to support increased production volumes [12][16] - The FF 91 2.0 Futurist Alliance vehicle has been highlighted as a key product, showcasing advanced performance metrics such as 1,050 horsepower and a range of 381 miles [13][14] Market Data and Key Metrics Changes - The company aims to establish a strong presence in the ultra-high-end vehicle market, particularly in China, which is the largest global automotive market [26] - The production capacity at the Hanford facility is expected to be approximately 10,000 vehicles per year, with a focus on brand recognition rather than high volume at this stage [24][25] Company Strategy and Development Direction - Faraday Future is focusing on brand building and creating a community of enthusiastic ambassadors for the FF 91 vehicle, with a strategic approach to vehicle delivery [31][33] - The company is implementing a Developer Co-Creation initiative to engage users in product development, enhancing brand image and product quality [49][50] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving operational efficiency and profitability, with a goal of reaching cash flow breakeven by 2025 [22][27] - The company is committed to improving internal controls over financial reporting and has made significant progress in this area [27][37] Other Important Information - The company secured $100 million in gross financing through unsecured convertible notes, with $80 million pledged by FF Global Partners [20][21] - The company has restated financial statements for previous quarters to correct identified misstatements [27] Q&A Session Summary Question: What types of volumes do you expect in the back half of this year and for 2024? - Management indicated a cautious approach to production ramp-up, focusing on brand recognition rather than volume at this stage [31][32] Question: Any guidance on volumes needed for cash flow or EBITDA breakeven? - Management acknowledged internal targets but was not ready to disclose specific figures publicly [34][35] Question: Can you provide more details on internal controls improvements? - Management confirmed significant improvements in internal controls over the past year, with a goal to remediate material weaknesses by early 2024 [36][37] Question: What are the expected production unit deliveries for 2023? - Management refrained from providing specific numbers but indicated that 2024 would see a ramp in production [39][41] Question: What customer support services are being implemented? - Management outlined a comprehensive suite of after-service offerings, including mobile service and roadside assistance [45][46] Question: Can you elaborate on the Co-Creation strategy? - Management described the Co-Creation initiative as a unique approach to engage users in product development, enhancing both product quality and brand perception [48][50]