Faraday Future(FFIE) - 2024 Q2 - Earnings Call Transcript

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]