FARADAY FUTURE INTELLIGENT ELECTRIC INC. Q4 FY2023 earnings call

• 2023 was a milestone year, transitioning from development to production and revenue generation phase.
• On March 29, production of FF 91 2.0 commenced; first production vehicle rolled off the line at FFIE factory, California on April 14.
• FF 91 2.0 passed U.S. Federal Motor Vehicle Safety Standards crash test requirements on May 25.
• Launched FF 91 2.0 Futurist Alliance and aiHypercar+ on May 31, open for reservations in U.S. and China; 11 vehicles delivered to users.
• Established close loop operation from user acquisition/delivery to user operations.
• Launched leasing program with Luxury Lease Partners, obtained Bureau of Automotive Repair license, activated home charging installation program and rolled out public charging program.
• Announced potential entry into Middle East market, with strategic cooperation agreements with Master Investment Group and Siraj Holding LLC; established sales entity in Dubai in April 2024.
• Appointed Werner Wilhelm as Executive Launch Director.
• Faced supply chain funding challenge, working to strengthen supply chain for production.
• Focused on building direct reciprocal relationship with users, collaborating with Jason Oppenheim, Chris Brown, etc., to gain feedback.
• Started quality campaign; 2023 factory successes included commissioning Robotic Body Shop and Paint Shop equipment, streamlining vehicle assembly process.
• Strengthened quality culture, final quality Customer Craftsmanship Audit (CCA) improved by 50% compared to first CCA scores.
• Rightsized operational footprint and workforce based on current operations and funding situation.

In fiscal year 2023, Faraday Future reported revenue of $0.8 million, compared to $0 revenue in fiscal year 2022. Cost of goods sold was $43 million in 2023 vs. $0 in 2022. Loss from operations was $286 million in 2023 vs. $437 million in 2022. Net loss decreased to $432 million in 2023 vs. $602 million in 2022. Total assets on December 31, 2023, were $531 million vs. $529 million on December 31, 2022. Total liabilities were $302 million vs. $328 million on December 31, 2022. Net cash used in operating activities for 2023 was $278 million vs. $383 million in 2022. Capital expenditures were $31 million in 2023 vs. $123 million in 2022. Net cash provided by financing activities for 2023 was $291 million vs. net cash used in financing activities of $7 million in 2022. Cash balance at December 31, 2023, was $4 million (including restricted cash of $2 million), compared to $17 million at December 31, 2022. As of May 23, 2024, cash position was approximately $5 million (including restricted cash of $2 million). Revenue contribution: The $0.8 million revenue in 2023 mainly came from vehicle deliveries.

• Main focus on stabilizing and strengthening operations, pursuing profitability and independence.
• Considering adjusting strategy to go back to earlier 2 brand setup to distinguish market segments.
• Leveraging Dual Home market strategy, plan to share details of U.S. China automotive industry bridge strategy Phase I in about a month.
• Expecting to ramp up FF 91 production in 2024; will inform on development and progress of shared topics regularly.

• Challenge of funding to support supply chain resulted in production volumes lower than anticipated.
• Capital required to produce vehicles at scale is the biggest barrier to vehicle sales and profitability.
• Stock price volatility risk; market revaluation of stock brings uncertainties.
• Uncertainties related to supply chain and funding affecting production and growth.