Faraday Future Intelligent Electric Inc.

Greetings. Welcome to Faraday Future Intelligent Electric Inc. Third Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce John Schilling, Global Director of Communications and Public Relations. Thank you. You may begin.

Welcome, everyone, to Faraday Futures' third quarter 2024 earnings. My name is John Schilling, Faraday Futures' Global Director of Communications and Public Relations, and I am joined by Faraday Futures' recently appointed CFO, Cody Mecca, our Global Chief Executive Officer, Matthias Eit, and Max Ma, Head of Product and Mobility Ecosystem and Head of Corporate Strategy here at FF. Today we will be sharing details from our third quarter 2024 results. The press release as well as today's presentation will be available on the investor relations section of our website at investors.ff.com. A replay of this call will also be posted there later this evening. Please note that on this call, we will be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views only as of today, should not be relied upon as representative of views as of any subsequent date, and we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For further discussion of the material risk, and other important factors that could affect our financial results, please refer to our filings with the SEC. With that, I'll turn the call over to Faraday Futures Global CEO, Matthias Eid.

Thank you, John. And thank you, everyone, for joining our earnings call. Let me outline the key areas I'll cover in today's discussion. First, I'll review our organizational transformations. Second, I'll discuss our corporate initiatives and operational progress, including our FF912.0 deliveries. Third, I'll provide details on the launch of our recently announced FX brand and market strategy, which plays into our FF dual brand strategy. Finally, I'll update you on our international expansion, particularly our progress in the Middle East. During the third quarter, we continued our transformation from a project-driven organization to an operation-driven organization with heavy emphasis on cost optimization, quality improvements, and operational efficiency. Notably, we made significant progress in our strategic roadmap while achieving a significant reduction in operating expenses. We believe this cost discipline combined with our strategic shift positions as well for our next phase of development. To help support this next phase of growth, we have strengthened our leadership team with several key appointments. Cody Mecca recently was promoted to chief financial officer, replacing Jonathan Morocco, who remains on us as a consultant. Aaron Ma was elevated to acting head of EV R&D, and Tim Mock was appointed head of FF UAE where he is leading our business development and strategic financing efforts in the region. Now, let me share some key developments from the quarter. In terms of corporate progress, we successfully completed several important initiatives. First, on the financing front, we secured $30 million in new financing commitments from investors across the Middle East, United States, and Asia. This included 7.5 million US dollar in previously funded amounts and 22.5 million US dollar in new investments. Notably, this financing included participation from master investment group led by Sheikh Abdullah al-Kasimi of Ras Al Khaimah. The net proceeds we received were approximately 28.5 million US dollar Of this amount, 20 million USD was received in Q3 and 8.5 million was received after September 30 and prior to today. In addition, I am pleased to report that we regained full Nasdaq listing requirements compliance, completed our previously announced reverse stock split and increased our authorized share count to support potential future growth opportunities. We also successfully worked with our existing node holders to restructure certain convertible nodes with the goal of reducing future cache obligations. The operational front, we delivered two FF91 2.0 vehicles during the third quarter, including one to Weigau, our head of global communication and community sales. Our other delivery was to Born Leaders Entertainment, expanding our B2B initiatives and developed co-creation of the program. This brings our total deliveries to 14 vehicles to date. We have implemented several manufacturing improvements including bringing certain vehicle body and interior component production in-house, which has reduced interior costs by half. Our FFIE factory California continues to demonstrate its potential as a cornerstone of our manufacturing strategy. We continue to enhance our product quality. A manufacturing-related warranty improvement process was put in place. There is a comprehensive synergy between factory quality and PDI resulting in a comprehensive CCA audit. Our first inspection customer craftsmanship audit score has seen improvement of 25%. We have made continued efforts to improve the FF91's software, AI and human-machine interaction with recent multiple software improvements that include expanded voice controls, improved route guidance, and improved display interface updates, to name a few, all created in the effort to make the lives of our users more connected, more engaging, and more effortless. A significant milestone this quarter was the announcement of our second brand, Faraday X or FX, which took place at our global automotive industry bridge launch event on September 19th. This initiative represents our planned return to a dual brand strategy with FX being developed to target mass market segments. We envision two initial models, the FX5, which we are planning to position in the $20,000 to $30,000 range, and the FX6, which we expect to offer between $30,000 and $50,000. Subject to secure necessary funding and approvals, we intend to offer both range-extended AI EV and battery electric AI EV powertrain options. We believe the market opportunity for range-extended AI EVs is particularly compelling in the United States, where charging infrastructure continues to develop. Based on our analysis of market data, while the US EV penetration rate remains below 20%, We have observed that range-extended AIVs have shown strong adoption in other markets, particularly in addressing range anxiety concerns. We believe this represents a potential opportunity for our planned FX product lineup. Our global automotive industry bridge strategy aims to leverage existing technologies and potential manufacturing synergies between our premium and mass market segments. Thus far, we have entered into preliminary agreements with four OEMs, including two strategic framework agreements and two MOUs, though these discussions remain subject to final documentation and various conditions. Turning to our Middle East expansion, we have made great progress in establishing our presence in the region. We recently announced a co-investment agreement with Master Investment Group, led by Sheikh Abdullah Al-Qassimi, to establish our future regional headquarters in Ras al-Khaimah. To our Ras al-Khaimah-based entity, Faraday Future Middle East Free Zone LLC, we have signed agreements with the Ras al-Khaimah Economic Zone, RAKES, for both current operations and a nearly completed 108,000 square foot facility. Earlier this year, we established a sales entity in Dubai, marking a key milestone in our expansion. This entry into the Middle East supports our third pole strategy, complementing our dual home markets of the US and China. Looking ahead, we are focused on three key areas, strengthening our core operations, advancing our dual brand strategy, and pursuing strategic partnerships that support our growth objectives We believe our engineering capabilities combined with our planned dual brand approach and the potential international partnerships position us to address both the premium and mass market segments of the evolving AI EV market. I now want to turn it over to Max Ma for an important update on our FX strategy.