Faraday Future Intelligent Electric Inc.

Greetings. Welcome to Faraday Future Intelligent Electric, Inc. Fourth Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference call is being recorded. It is now my pleasure to introduce Jun Thang, Investor Relations. Thank you. You may begin.

Welcome, everyone, to Faraday Future's Fourth Quarter and Full Year 2024 Earnings Call. My name is Jun Sun, Faraday Futures Head of Investor Relations. I am joined by our global CEO, Matthias Eid, CFO, Cody Mecca, our president, Jerry Wang, and Max Ma, the global CEO of FaradayX, also known as FX, which is our new subsidiary, as well as tech lead, Anshul Rai, from the Intelligence, Autonomous Driving, and Internet Department. Today, we will be showing details from our fourth quarter and full year 2024 results. The press release as well as today's presentation will be available in the investor relations sections of our website at investors.ff.com. A replay of this call will also be posted here later today. Please note that on the 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 a representative of views as of any subsequent date, and we undertake no obligation to revise or publicly release the result of any revisions 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 risks and other important factors that could affect our financial results, please refer to our filings with SEC. With that, I'll turn the call over to our CEO, Matthias Eidt.

Thank you, June, and thank you, everyone, for joining our earnings call. I'm excited to walk you through our progress and achievements from Q4 and full year 2024, as well as some key points and milestones for 2025. Today's presentation will cover the following key areas, an overview of 2024 developments together with 2025 outlook along with our financials, then our Q4 key accomplishments, and full-year accomplishments by sectors, and finally our 2025 focus in AI technology and project planning. First, let's have a brief overview of Faraday. Founded in 2014 by Y.T. Jha, a serial entrepreneur and the originator of Smart TV in China market, Faraday Future is a California-based global shared intelligent mobility ecosystem company we aim to disrupt the automotive industry with our next generation intelligent connected electric vehicles. We are currently in a pivotal time here at FF, currently leveraging our strength and exploring additional measures to enhance operating cash flow. To this end, we are undergoing strategic upgrades for the business with the main emphasis on launching the new FX brand. This launch will capitalize on FF's deep-rooted internet and technology expertise to deliver a more accessible, user-friendly, and cost-effective intelligent EV offering. Veridex is designed to welcome a broader audience to the FF ecosystem, delivering our advanced human-machine interface and the elevated driving experience enabled by our proprietary technologies. This FX brand is part of our bigger company strategy that includes FF's global automotive industry bridge strategy. With this strategy, FF will seek to bring global components and supply chain into the US to invigorate the US AI EV industry and provide consumers with more diverse and better product options. Our global automotive bridge strategy also positions us to leverage our cutting edge AI and software technologies across multiple market segments, potentially accelerating our mass market entry while maintaining our ultra-luxury offering. Our bridge strategy aims to introduce a performance-capable EV at a fraction of the price by empowering a second brand with much of the core technology used on the $300,000 SF91. A mass market second brand could make the AI car of the future the AI car of the people. Our strategy aims to establish a second mass-market-focused brand by collaborating with China-based OEMs and parts suppliers, focusing on the $20,000 to $80,000 price segment. Below the FF brand, FF plans to upgrade its sourced components by integrating its own proprietary AI and vehicle software. Combined with mechanical platform support and supply chain collaboration from China's automotive industry, This creates a strong value proposition for scaling into the AI driven EV mass market. With our dual brand strategy, we are all ready to deliver exceptional products and drive long term success. In 2024, we built the light, swift and empowering model. This isn't just the slogan. It's the blueprint for how we operate. Being light means We are resource efficient, keeping our assets, capital, and marketing lean so we can adapt quickly in a competitive market. Being swift means we move fast. Whether it's decision-making, execution, or production, we stay ahead of the curve. And empowering is about creating value, empowering our products, our teams, our users, and our global strategy. This model has been the driving force behind our success this year, and it will continue to guide us as we grow. Let me take a moment to highlight some of our key operational achievements this year. We've established strategic partnerships with major OEMs. We have played a crucial role in accelerating the development and testing of our potential SS product line, a clear reflection of the industry's growing confidence in FF. On the product front, the in-house development of the FF91 has been successful, with a total of nearly 1600 software updates. This flagship model showcases our proprietary technology, including advanced AI-driven operating systems that are paving the way for the future of the FX line. By delivering the FF91 to top-tier users, we've not only proven the strength of our technology, but also build momentum for the FX commercial rollout. These milestones reflect the relentless drive and dedication of the entire FF team. Financially, 2024 has been a year of significant improvement. Our operating loss dropped to 149.7 million, a 47.7% improvement from 2023. This is a clear indication that we are becoming more efficient and focused. It's also important to note that 58% of our full year net loss was driven by non-operating losses and non-cash expenses, not our core business performance. This shows that our core operations are strong and moving in the right direction. We are building a sustainable financial foundation that will support our long-term growth. In the capital markets, we have seen a fundamental transformation this year. We have regained full NASDAQ compliance, which is a major milestone. We've also seen tremendous growth in retail investors. Our NOBO holder base has grown by 163% since mid-2023. This is a clear sign that more and more people believe in our vision. and we successfully received 76.7 million cash funding throughout the year to support our growth and innovation initiatives. This funding is critical as we continue to push forward with our plans for the FX line and beyond. The capital markets are recognizing our potential and we are just getting started. As we look to the future, our focus is clear. First, we're on track for FX's first vehicle to roll off the line by the end of 2025 and we expect to hold our first vehicle launch event and start to collect paid reservations in Q2 2025. This is a pivotal moment for FF and we are ready to make it a reality. In the meantime, we will continue to deliver FF91 at a steady pace to serve the SPIRE user and co-creators. On the operation side, we also anticipate being able to announce a second product, a category-defining high-volume electric SUV, among our AI EV family. Such product development will kick off in Q2. We will also continue FFAI technology development, including AI-powered smart cabin, AI hybrid system, semi-autonomous driving, and US regulatory compliance in Q2 and throughout the year. With the FX strategy, we are set to make high-performance vehicles more accessible and affordable. Financially, our goals are clear. We're targeting to have the first FX vehicles start to generate revenue in 2025, meanwhile achieve positive gross margins for FX models as quickly as possible, with upcoming funding secured to support development and production. This is a critical step towards sustainable profitability. Additionally, we are focused on optimizing funding costs, ensuring we secure the capital we need without excessive dilution when possible. We are also committed to maintain NASDAQ compliance. We've worked hard to meet NASDAQ's requirements and we'll continue to do so while preserving shareholder value. And above all, we're fighting to enhance stockholder value. In 2025, we're planning high-frequency engagement activities to keep you informed and involved. One of the highlights will be launching our annual general meeting with an investor community day, a dynamic event with more interactive sessions and opportunities to connect with the FF team. Your feedback and support are invaluable, and we want to make sure you as our stockholders become part of this journey every step of the way. With that, I'll hand it to Toti, our CFO for the financials.