Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings. Welcome to Faraday Future Intelligent Electric Inc. Fourth Quarter 2022 Earnings. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. this being note Please Instructions] conference recorded. is [Operator conference Charles Hsieh, will now Relations. to the turn I Investor over Thank you.

You may begin.

Charles Hsieh

our a Thank Future’s you March release X, issued this fourth Faraday and reporting press quarter XXXX XXXX. XXXX and earnings call. afternoon, welcome results fourth quarter to annual We

Han. Global Financial Accounting Global Joining Product SVP the our Execution; call Officer, Officer XF Officer, and Faraday from Executive today Chief and of Chief Interim Chen; Yun is our Future Chief Matthias Aydt,

find of of release call Investor copy can now and website, later the press You QX XXXX our a the in of a this Relations investors.ff.com. replay section today

uncertainties. Please representative of obligation of will expectations. be these subsequent we expectations These be in to variety to to to our as note materially of views on today, revision we dates. revise any relied are no release a new current risks upon call, and based on of statements any that making publicly or assumptions, should forward-looking and subject not statements information are views events. or forward-looking only this uncertainties reflect as from of actual statements which could subject And as results risks cause These undertake differ future that the statements and of light to results

financial discussion of refer please results, to our factors important SEC. our affect further For with could the material other risks that filings the and

only. case are through team today’s which statement translations will discrepancy, provide will translation, investors’ remarks in management simultaneous any their provided All will accessed for the call, in investors.ff.com. be answers during translator of questions our used can In prevail. management’s A addition, to give In English and English. convenience prepared Chinese

over that, With Faraday will Future. turn CEO of call to XF Global the Chen, I

XF Chen

FF in optimized ultra-luxury the and make would intelligent is FF to what market a a is also that EV to of Ferrari intelligent aims company, let and have Ultimately, Maybach. of joining the priority civilization plan for phases. growth not to consistent of call by and I CEO earnings here FF car in offering my is begin first with thanks today. it investors call mobility ultra-spire the a pioneer is I a Charles to like ultimate you envision I today’s EV software-driving traditional you, us know forward. become FF by This just open of product. Global ecosystem. a FF communications and disruptor internet as FF. tech-luxury and Thank a area We three everyone want to user company to but intelligent moving AI company with

users, with Our high traditional Phase FF distributing Rolls-Royce Bentley deliver X and spire and FF and ultimately XX global market. luxury auto and alliance, ultra high-quality the to Futurist to thereby the our goal in FF global is the user XX spire top leaders like power product brands XX Futurist Maybach, become Ferrari,

flow breakeven company’s a is cash XXXX. business in X-year in process are of plan. our We goal with developing to business create profitable The operating the

take As internet include the revenues, upcoming software expect ecosystem shape revenue more sharing. begin APP hardware we and will we equal which grow introduced to our under user will vehicle models, and

as We also grew well.

market. is in goal user to Our value Phase high as X establish player major ourselves the a

then we to its the $XXX in we grow of With X, long-term this aim constitute company suspend overall $XX revenue, During and will of the FF an plan, billion increasingly Phase hardware billion, to mid believe strategic company to then rapidly substantial a future. which the revenue intends equal become profit. to portion $XX the growth billion,

FFI actions XX then fundraising the to are brief where our will go-to-market review Future. other provide of start of quarter Yun upcoming XXXX, and update present milestone production stand our at we plans, and Futurist overview Faraday the of one will we our financials, Matthias strong look to Let’s of and a taking company an a today, our overview ensure

several challenges, reaching for persisted, challenges our stronger the But year XXXX to was FF past our the today ever. commitment despite company. unwavering a putting us. behind than tough with stands this

such well me made board Officer; now Accounting leading We our improvements our in Faraday have Chief China also from Financial and Counsel, operations key significant global align with stakeholder management Chief [indiscernible], abroad Interim our new General interests Officer as to the to moving Interim and as Yun, to Future’s business. hires, our as

for from all the new employee level betterment shareholder aligned company to today The shareholder the is of level, and interest. FF fully

the X past work team the company. and they Over put FF the the unparalleled months, into hard seen of I dedication have the

We are months, year. marks Futurist become in to goal a Faraday significant this which the in milestone excited FF company XX introduce Future’s to coming revenue-generating

California, the is talk of as square it, few spanning Now, XX to or have we and to cars refer we production our intelligent will like areas being moments I at which would initial our This the foundation annually. ultimate take tech-luxury XX,XXX about FF million Hanford factory, X.X to a base Futurist. manufacturing ieFactory, covers undertaking capacity the for factory efforts an

On will the recruitment staff side, which and we intensifying support our of are style production. training,

be a team for Hanford issue. launch provides and only colleagues, have to support We particular cross-functional also manufacturing moved of to will our temporarily consistent the assistance immediate setup who

of milestones completion Back the foundation and plant the then, aerial. manufacturing to we worked construction all necessary milestones, most manufacturing major our equipment, has to in factory of Hanford. six in finalizing installation our recently to intelligent in SOP six the of needed initial vehicle installation of complete including production production reach construction the the the start Futurist team pilot FF XX our Since highlighted XXXX at of September FF of

of company’s March production funds confident reach milestone assuming which In talk addition XXXX milestones, number will seven about more lately. our start investors, of aforementioned to by production the are to our XX, receipt first from we we

participation. final FF on we forward Futurist the XX host to And launch XX. April We event will your look

no such task. is innovative small Building car an

closing Furthermore, actively to We in to the have parts expertise supplier our where suppliers. engage Internally to vehicle quality and on our project, that process one the a with ensure standard. want of maintain optimizing communication suppliers our high relationship seek initiated partners are of assigned our with we level we capitalize and for support and meets our it strive their want supplier President interact strategy. as highest each champion’s efficiency, to supply receipt other production bit are in strategy, chain with higher we on their company our co-creation mobility to meeting alignment. the strategic assurance to and throughout value to We generate ensuring our I supplier FF and having talk the take Vice for our bridging in companies about little all to deliveries ecosystem. a go-to-market April end funds from I how opportunity and is requirements. user investors by our assuming our user continuous thank our of their suppliers commerce redefining higher prepare go-to-market to to stage. also partners commitment focuses we of

the We started have inviting the Product through experience to wake-up Futurist early Program. Officer adopters performance

co-creation and feedback the referred the FF XX we experience back through progress. enjoying ideas invited their on the future on FPOs FF quality based pro directly rate and sharing improved to were value are product. of that and to go team Futurist FPOs the

influence. with of to same is FF a would like and vision value FF benefits branding co-create units who the Spire and we creating in of exclusive the Club ecosystem which share mobility by sharing to are Spire tech-luxury candidates We are new media their referral join through social mobility members show the leveraging ecosystem share mission will out group circle programs. who FF events, of and taking to their reaching Club, on a

order partners to outdoor allow solution. platform and requirements are or can able cars integrate FX owned experience licensing also FF the launch where Futurist and our the will to sales OEM. sales XX have operate leading model, owned online our necessary our service the safe luxury and We fuel a rules sales With direct direct cars sales service experiences. through our sales FF seamlessly and and to partner in model, direct fulfilled users FF place auto

have center Beverly to flagship and forward car there brand Hills soon. project experience We showcasing our our started in looking

efficiently the and transparent our and a our the FF operation can customer Through the of for users. own rate seamless relationship hopefully handle journey sales pro network, distribution

retail our the will establishing in top focused worldwide. regions be presence Our on primary XX strategy cities across

Shanghai will sales LA the New in begin with followed Metro and San Francisco efforts In begin Beijing. the initial sales initial efforts the history and Area Canadian region, China, region. our by York Our will subsequently Bay Metro

customers, the potential luxury market of to fleet regions. once it as we with for we and customers vehicles of Middle provide ensure opportunities our positioning and To for launch their mobile to East growing the help Europe in launching exceptional service exploring our demand level will are product be concierge product our aligns ultra our in to Additionally, service. surveys

current intense network eagerly continue the efforts our as value. growth facing to provide towards service we and great in geographic journey will Their pride stockholder repair put take acknowledging Additionally, advance the a I enabled a by path surveys strategic us Despite strive area I challenges, has have initiatives. forth anticipating located perseverance numerous FF commendable comprehensive of in and team. am our the to ahead pursue capabilities. warranty

I to turn to call over Matthias. Now the would like

Matthias Aydt

to rear-axle propulsion X is X.XX experience FF design, in-house electric an more The our range, innovative XX would Futurist performance, FF few bespoke has The a range Futurist. in elaborate offering fully FF and take also seconds. unsurpassed by drive XXXX to a on direct developed with optimizing stability XX leading system Futurist and user comparable control is XF. category. to XX which hour algorithms, I miles cooling priced The The independent XXX metrics. offers per competitors boast units, our certified miles in horsepower a of active of almost miles and oil safety. FF performance FF industry a Thanks, provides can like cars to from go and blistering driven software the moments XX product than XX XX and drive integrated EPA XX the

connectivity, performance, unrivaled to in has addition industry. true XX the Futurist In the mobile is FF which

passenger You Futurist sets device smart can XX a industry driver that FF a and on game benchmark a wheels, the experience. as in automotive think both for changer the new of

internet ecosystem Futurist living system immersive across plus light passengers ultra deliver industry rear XX degrees total comfort, displays, coupled XXX XX of a and inspired third to the area mobile every The unique rear in also to features it can with revolutionary internet and experience gravity experience, cabin intelligent rear up rear a luxurious revolutionary intelligent experience offers interior passenger driving a user XX-inch the offering inches an a designed and zero unsurpassed NASA portal create to platform. seat. space by display recline FF largest a mobility offers to including the user It’s and connected legroom and for seats a in maximum XX

command. Rear presenter allow would road environmental the industry FF also in advanced lower raise rear to the conduct their commuting. a be able features touch the normal will on RST voice XX have self FF videoconferencing is them with less display will be capabilities entry, done, navigation now while to in-vehicle simple additional seat and Once control work The input, passengers including most able passengers to to and conditions. for continue parking XX in voice leading

on customer Our undertaken to and the extreme use safety durability include of final validation roads. These dedicated testing readiness testing testing, and XX has FF product tests, and product Futurist. case weather extensive team regulation R&D and tests public intensive ensure

We in environments pleased the and conditions extreme Futurist temperatures we XX the heat have with and desert tested are sub-zero cold results. weather under FF

for sales Additionally, software our and other China first with we validation, vehicle electric a testing promotion U.S including in the and along further both market global vehicles. applications. in sent U.S-China and to and charging dual which our market compatibility the calls strategy, leading This planned of markets is our shipment China, hardware two home for infrastructure and for recently step production

that planned We validation our are results are pleased to and virtual significant is exceeding margin. as by proceeding targets safety the report testing that our

core, car intelligence. at which and well enhancement, and announce sharing resulted in as advanced XX X.X. upgrades battery, upgrades for to and I.A.I. power components have to internet, the forward through as chassis the Product Technology our our areas significant interaction with updates our as which key In the of for of we significant Futurist. vehicle upgrades highlights deliveries. and communication, sensing, XX components identified both car and to major of autonomous driving train, systems areas. of systems look to a newest improvement Generation generational charging, consists launch final I.A.I product We our addition user more ahead completion updated of stands XX testing, We I.A.I the performance detailed FF the interior event proud is we to technology This from have key XX from and computing, These are

transmission data Bluetooth and does The more new final sensors our exterior it center, Specifically, for on April to what powers a forward mean up LiDAR are meters with faster event in few. interior dual capability to XX. We system name chip ultra-wideband infotainment all speeds for cutting-edge any means getting weather X So that megapixel launch a following conditions. compared cameras, the upgrades detect the users? conventional to upcoming sharing look to this the at they and our to Qualcomm XXX

financials. turn I will to the who the over will call over Now, Yun go

Yun Han

team. reporting. would working the to overview, funding as by followed effort, as plans to up-to-date excited am our weaknesses in a like entire financial focus in discussion financial Future I cost-cutting and a ensuring the providing Faraday controls I on that Matthias. on internal address place SEC all you, well be strategy are to our filings over Thank by begin with our

operating compared increase expenses our the to due of Operating the $XXX operating in were to full of development operating months for in $XXX were in QX to reported as financial XXXX. for million year for the XXXX $XXX in XXXX. to of are as The for million timing like million would to in I comparison year the Faraday summarize for expenses and Future First, expenses XXXX to the research QX full QX compared loss expenses year. expenses. XXXX increase decrease XXXX. was overall mainly year loss the due operating and significant first research QX for for $XX the million The X mainly incurred results an XXXX development

development XXXX is expenses compared a the the XXXX the year in in is compared $XX value measurement XXXX increase combination to notes loss research payable certain liabilities The The for and in notes settlement business compared certain XXXX. protection mainly due Net closing Net connection to with of certain one-time and of in the to of XXXX to in notes increase in payables loss the in on gain on million the increased for and mainly one-time QX $XXX year to certain XXXX. of payable was $XXX full non-cash non-cash for million XXXX. conversion changes forgiveness mark-to-market warrant in and loss XXXX. increase and full $XXX notes on warrant increase million as million company’s payables to for liabilities of a the to again in of payroll fair QX changes due compared loan QX during

from were of compared XX, Turning XXXX operations December $X.X liabilities million $XXX incurred of inception, activities to on total on company’s Total the Since as losses approximately our XX, cumulative $XXX sheet, cumulative and XX, December million deficit million balance and billion flows $XXX has from assets versus operating were to total December negative as of was the company assets XXXX. XX, $XXX million XXXX. XXXX. the December cash

year million activities used in for by million XXXX full operating in Net $XXX activities Net compared $XXX significant December from due cash cash XXXX. year full year activities used research million The including spend of and $XX XX, to $X XXXX. XX, expenditures XXXX year in the financing million compared the was were XXXX the compared $XX mainly was for million, purchases. provided $X Cash XX, and net cash restricted for cash development the million. to $XXX full XXXX as of decrease to was December to XXXX. million equipment of XXXX for December XXXX cash Capital for million the to by financing our $XXX full in was

and of XX% expenses development for total XXXX. Research accounted in operating

XXXX, As million. including million, position $X X, restricted was of March our of cash cash $XX

funding product hand sufficient provide to on of is Futurist our cash and hands the us into received with and produce March get expected FF funding to to customers. in expected together remaining Our April be XX

share pending conditions. authorized to vote FF’s a Since XX March working stockholder production outstanding funding and over of million authorized other of and last expect February financing million shares certain new have like provide year, to increase. of timely closing would approval then, commitments, been the start the we we diligently Futurist update. the On XX end increase I financing XXXX $XXX to X, that additional towards subject to announced we a On that of to $XXX we availability in timely goal. announced that December FF Now, approval of secured at and stockholder $XXX million we funding of

the received Stockholders, increase XX authorized in sufficient votes the February we favor Special At Meeting of were of shares. that in

XXXX XX% Meeting as March vote XX, Additionally, of transaction we of this on approval outstanding. another scheduled Stockholders on of Special exceeds to it shares

voting to have received Please vote should new You approve million $XXX commitments. by in financing the instructions now now.

voting any definitive you to more Please filed proxy regards for company SEC guide at If with the the with please questions to our that voting, information. ff.com/vote. have see refer statement

XX, as the spoke about shares is the effective convertible approval XXXX, Meeting in have registration the to and funded received of XXXX. we received Stockholders, upcoming to days issuance $XXX notes Special stockholders the within secured X million million we statement be shares scheduled business as December funding secured be million Since which underlining gross $XX for other conditions. of of at scheduled QX certain $XX and of well just

of investors that the funded options. from we existing investors’ at end which be will million We also by will expect $X our receive March, additional

allows in $XXX for million which company’s Advisors, company agreement issuances for equity the the entered funds we have at share Yorkville draw to Additionally, discretion. exchange into standby a up purchase with to

a investors to funds up to our to has by Subject existing met. plan launch beyond always is beneficial being this should most credit threshold FF careful our $XX additional and be certain is raise to move value. and been additional very we and in subject shared We right expectation to one strategic amount that of is It our of the the to committed million stockholder of commit facility using initial this conditions, some million and capital current of investors of Futurist. equity manner the full in have additional will line Access of press XX conditions $XXX to funds. certain

better We production investors have have interest $XX a to stockholders the investors raise our million to indications ramp to and that accredited investment already are received begun liquidity would to support this just nearly of all like for offer existing amount. to opportunity consider. from We have full

We out call. this letter shortly investor will an earnings send after

For those please current ir@ff.com. accredited with at investors us e-mail interest, stockholders

access We will and possibilities revenue continue of will XX FF to delivery explore to better after start have equity we financing companies various to a believe that and lower and generate Futurist debt as capital. cost we

Finally, several say to key we items to to strong Also, and since our will company, essential am that that are implemented filings team on I our maintain cost-cutting to since current. relationships have FF suppliers. continue that have we with up I focus delivering core joined and our Futurist to will the initiatives us happy QX it has XXXX on kept the enabled budget stay expect SEC date

implementing as well our Additionally, reporting. governance we to worked corporate system internal to processes the controls I with are strengthen financial business team and have and as evolve

who as We have will also as our Officer, serve Legal Compliance accounting Counsel. key as Deputy well recently positions hired several

to also build engaging function. audit consulting internal are us third-party firm our We a help

hand to it With that, XF. I’ll back

XF Chen

Directors the shown appreciates of like by Board for them FF thank Yun. their investors and you, trust the governance and to management. and Thank recent structure, of loyal support ongoing would

updates at look time be Hanford to to We to closer interest you I SOP providing coming milestone us are will upcoming move in we visit And and forward our launch. your delighted facility. Faraday as have to we you in with you the Thank months. looking And the the for further Future. forward

Charles Hsieh

Operator, we questions. are to ready take

Operator

Michael is Thank from proceed. with Please first question you. [Operator Instructions] Our Ward Benchmark.

Michael Ward

starting a the Thank cash and for a little the big more call. picture with on and Maybe evening, question just everyone then specific side. you. getting Good you doing thank

First assuming and of How are you your of has all, key going still market and something XX are side, picture on like changed? shifted? your or XX customers? you the produce the Are down big you is definition to go your defining

XF Chen

top little Okay. repeat question, I you of XF sorry, facility. bit could got This so, is I But a guess because the probably I your of am trouble.

Michael Ward

problem. No

customers, Just picture are a at? your you what as the looking define you things looking key Has key type big has out it still thing market Are – changed? are your also you would years? the how XX at XX? are the the X, seeing do you define coming out the you you over X, X What it with your and next market – way and

XF Chen

product FF, as high-end Well, question. a okay, very designing a it’s very good are we premium our product.

also all, that the of We X-year FFXX at design build to do first very the our advanced the and very it or how First development technology market much we and because how plan company our a this this year, – FFXX, just AI vehicles mountain but has the will for introduced. are as strong X-year, bring tech-luxury Futurist. this kind That’s we we kind brand our plan a to market. FF of apply for aimed the strong of a be auto the of as think unique the will cycle very of have as consider car performance top FFXX, want designed into we our with into we mobile segment we product platform the and technology and apply

they And first as will our position to also brand and the the market. that level down So, high enter similar brand experience get the in diverse plug we does will get of – segment the kind customer. for segment to to to premium very premium higher their meet price they we segment the then a strong position provide of FFXX as

strategy. another So, our is this

We are Sorry. still your working on Did that. that question? answer

Michael Ward

you the sounds to Is And you still vehicle United China. have in States? waiting Thank then much. it sounds very approval And Yes, are sell final in like that approval like it it full do right? you. on does the now

XF Chen

with March, Well, to to month. kind deliver have a the plan and by a end car by first the end car of that in month, And there of we got of month. this deliver we all, that’s the and – by we plan parallel, end to we got raised, of that have raising XX this kind actually of got car funding condition, the a right, launch value will And once opportunity our was end funding the a arrived. the next launch the We got deliver April, of of requirement, we also this of supplier plan end Futurist by month.

Michael Ward

So, in regulatory all you it’s met the have all Federal the U.S., approvals? approvals

XF Chen

is month, Not FMVSS, people some all start and because next of be the be month, will the will wait by finished. be – and our to of result to of the ongoing, have the of America end U.S. people next the early in or them testing of XXX%, some delivery available end by But still National month. and requirements this the

communication that’s world. U.S. regulation that and So, think my also our market China right biggest parallel speech, your accelerate the the a we the market, the have current delivery China credit market, as NASA the we to do seminar in plan related a sales, delivery will plan after for customers, to take application. confidence the EV the that’s over To have for And we robust for I the a China one. very In stated question in high I about and plan.

detail China had of all agency we will with of We very have through robust technical a very have good relationship one and of the this kind plan. go and a

kind to the we ship market. we coming to During testing – plan – the the general for in will this to China do plan car months of

As this and some we performance February, a result, charging getting system or to late China are to February, of also testing. the one do car

strategy. the that delivery, accelerate China doubt market say we no will can right you So, after our U.S.

Michael Ward

kind Okay. deliveries And you XXXX? U.S. cadence as through of expect the we what and China go for in do

XF Chen

not yet. disclosure we because information one, pull internally, as do this this Well,

So, really your cannot I I but answer. question, like probably

Michael Ward

No fine. That’s problem.

lot cash there the just to about. wanted On in if I of see a commitments because I side, thrown dollars different were

So, I got I want this if to right. see

in $XX think I And mentioned with have $XX million. now about year You million cash. the you you have ended

the so Did And sounds into million the received $XX the ending the Okay. million at like February, $XXX you million, is some you it guess like are January, quarter, some but I March of first beginning was the million, sorry, of in quarter, into first have that in $XX proceeds. of I March first in – $XX quarter, right? gross come am

Yun Han

Yes.

Yun. So, I this one. take Yes. this is can

in the and through And hand. additional had March, committed on $XX about we million beginning we we, are So of March we expecting April, funding. are to get

effectiveness March, to the the the second of scheduled to we So, cap other end XX% And we committed funding, $XX March. special XX%, – also approve that registration stockholders another in have the the and meeting scheduled $XX the with the million then upon still by coming million of and are statement. then be of amount, things, we

Michael Ward

Okay.

the… what’s So,

Yun Han

Go ahead.

Michael Ward

million, $XXX to you Is is in December? that the the back in in $XXX million million $XXX addition commitments, new to announced

Yun Han

will We us as year. span of SOP get the they enough through And and finalizing million, million. SOP. used, $XXX to $XXX million And remaining we as well currently $XXX the with the of announced the are

have can’t we million. we get So, to you access know, through tell the us as is million that that at but then HELOC, least to $XXX SOP. up also And the $XXX remaining, you with million, at we got come. for then $XXX that of we also and very so is on certificate use also we have likely to that’s to it. That’s the option investors, holders how But be careful

currently So, consulting… we we And have few on. a going are things

Michael Ward

I to sure make just I want this got straight. Okay.

million $XXX it. December, announced you there So, right. funding, In of parts are different four to $XXX to million

looks additional it additional Now, and And from have on funding, an you another then $XXX February $XXX – investors. from and or like, so investors equity million. from it Xth, you sounds like you million different raises the And $XX then announced have million. agreement the purchase

cash flow, get looks and start it if like, push delivery, then the on it to you those the you paper, Am ‘XX. reading of you into get to capital like correctly? I it just this year flexibility have get them So, ‘XX through delivery, – that to looks vehicles

Yun Han

we clarify just get to the I fund $XXX is That’s Well, $XXX to the million need want million that announcement… to into SOP.

Michael Ward

Okay. Got it.

received. Okay. commitment looking said what you are That’s I thought was needed. a you for. you what That’s you that

Yun Han

looking as are for we we got what subsequently million. $XXX That’s

also will obviously, And other from through now, that so us get and we SOP. fundings, get

Michael Ward

Got it.

understand I That’s I was Thank where confusing. that. Now you.

Okay.

start as So, the And SOP, the coming through in will needed. then and as well. that’s door steps you – getting you hopefully, the next will start cash

Yun Han

Yes.

We our have more capital hired strengthened people. market group,

have We hired more experienced financial advisor. also consultants,

are we So, future. funding hard getting in on more the working

Michael Ward

is Getting the the door product the step, right? first out

Yun Han

And funding we offer of will to will a be, have cost with capital. access Yes. value lower our hopefully

Michael Ward

for Alright. Thank very appreciate Thank you I your it. much. time. really you

Yun Han

Mike. you, Thank

Operator

Thank question-and-answer conclude will today’s conclude conference. today’s And session. this will you. This

may disconnect for thank lines your time and at You participation. you this your

Faraday Future Intelligent Electric (FFIE) 8 Mar 232022 Q4 Earnings call transcript