Faraday Future Intelligent Electric Inc. (NASDAQ:FFIE) Q4 2022 Earnings Conference Call March 8, 2023 8:00 PM ET Company Participants Charles Hsieh - Investor Relations XF Chen - Global Chief Executive Officer Matthias Aydt - Global Senior Vice President, Product Execution Yun Han - Chief Accounting Officer and Interim Chief Financial Officer Conference Call Participants Michael Ward - Benchmark Operator Greetings. Welcome to Faraday Future Intelligent Electric Inc. Fourth Quarter 2022 Earnings. At this tim ...

Financial Condition and Funding - FF's audit reports for 2022 and 2021 raised substantial doubt about the Company's ability to continue as a going concern due to recurring losses and cash outflows [216]. - FF expects to require additional funding within the next 12 months to continue operations, which may lead to bankruptcy or asset liquidation if not secured [216]. - The company received total proceeds of $9.2 million from the Paycheck Protection Program, with $9.0 million forgiven as of December 31, 2021 [289]. - The company may incur additional expenses to recruit and retain qualified personnel, impacting its ability to execute business strategies effectively [293]. Legal and Regulatory Challenges - The Company is currently involved in multiple legal proceedings, including SEC investigations and class action lawsuits, which may result in significant expenses and management distraction [217][218]. - The company is currently in litigation related to alleged misrepresentations made by LeTV, which may impact its reputation and operations [362]. - The company has faced scrutiny from regulatory bodies, including the Hong Kong Stock Exchange, regarding compliance with listing rules [363]. - The company is at risk of delisting from Nasdaq due to non-compliance with the requirement to hold an Annual Meeting within 13 months, with a deadline to submit a compliance plan by February 20, 2023 [394]. Internal Controls and Governance - FF has identified material weaknesses in its internal control over financial reporting, which could lead to inaccurate financial statements and adversely affect its business and share price [235]. - The company lacks sufficient accounting professionals, leading to deficiencies in timely and accurate financial reporting and inadequate segregation of duties [236]. - The company is actively engaged in remediation efforts during 2023, including hiring a Compliance Officer and engaging external consultants for internal audit functions [245]. - The company has faced governance changes, including the removal of its founder from an executive role, to enhance oversight and corporate governance [243]. Market and Competitive Landscape - FF's business model heavily relies on the success of the FF 91 series, with uncertainty regarding the funding and timeline for the FF 81 series [223]. - The market for FF's vehicles is still nascent, with uncertainty regarding consumer adoption and demand for its innovative electric vehicles [224]. - FF faces significant challenges in vehicle sales and marketing, including high volatility in automobile demand and competition from established electric vehicle manufacturers [231]. - The automotive market is highly competitive, with increasing price competition potentially harming FF's business and market share [270]. Supply Chain and Production Risks - FF's supply chain is vulnerable, as it relies on single-source suppliers for many components, which could lead to production delays if issues arise [225][226]. - The Company has not approved secondary sources for key components, increasing the risk of supply disruptions [228]. - FF may need to provide financial support to distressed suppliers, which could increase costs and impact liquidity [230]. - The company has only fully qualified one supplier for battery cells, limiting flexibility and increasing risk of production disruption if supply issues arise [337]. Technology and Intellectual Property - FF's reliance on third-party suppliers for technology development, including lithium-ion battery technology, poses risks to its production capabilities and competitive position [234]. - FF's intellectual property assets, including patents and trade secrets, are crucial for its business growth and brand recognition, but the company faces significant risks in protecting these assets [309]. - FF has delayed patent filings due to financial constraints, which may disadvantage the company against competitors with more active patent portfolios [313]. Operational and Economic Risks - The company faces significant risks related to natural disasters, climate change, and pandemics, which could disrupt operations and lead to financial losses [283]. - Difficult macroeconomic conditions, including decreases in consumer confidence and disposable income, could adversely affect demand for the company's electric vehicles [282]. - The COVID-19 pandemic has led to significant volatility in the global economy, affecting vehicle sales and supply chains [285]. - The company may experience increased costs of raw materials and supply chain disruptions due to the pandemic [290]. Strategic Partnerships and Market Entry - FF's go-to-market strategy includes establishing both online and offline sales channels, requiring substantial investment and resources [274]. - The company expects to distribute vehicles through direct stores and partner-owned stores, which may slow expansion compared to traditional dealership systems [275]. - FF plans to offer direct-to-consumer leasing or financing arrangements, exposing the company to credit and compliance risks that could adversely affect its financial condition [353]. Influence of Key Individuals - Mr. Yueting Jia has significant influence over the company's management and operations, holding 15.4% of the voting power of the fully diluted Common Stock, making FF Global the largest holder [368]. - The company is subject to ongoing restrictions due to Mr. Jia's personal bankruptcy restructuring, which may adversely impact its strategy in China [365]. - The ongoing association with Mr. Jia poses risks, but his absence could also adversely affect the company's business and prospects in China [363]. International Operations and Risks - The company faces operational risks in China, including potential adverse effects from changes in government policies [397]. - FF's future operations may increasingly be based in China, heightening sensitivity to economic, operational, and legal risks specific to the region [398]. - Uncertainties in China's legal system and regulatory environment could materially adversely affect FF's business operations and financial condition [401]. - The PRC government's significant role in regulating industry development and economic growth could lead to decreased demand for FF's products [399].

Faraday Future Intelligent Electric Inc. (NASDAQ:FFIE) Q1 2022 Earnings Conference Call May 23, 2022 5:00 PM ET Company Participants Mark Connelly - VP, IR Carsten Breitfeld - Global CEO Becky Roof - Interim CFO Conference Call Participants Dan Ives - Wedbush Trevor Young - Credit Suisse Emmanuel Rosner - Deutsche Bank Michael Ward - The Benchmark Company Operator Good afternoon and welcome to Faraday Future’s First Quarter 2022 Earnings Conference Call. Today's call is being recorded, and we have allocated ...