Faraday Future Intelligent Electric Inc.

Welcome, everyone, to Faraday Futures' second quarter 2025 earnings call. This is John Schilling, Director of PR and Communications at FF. Today, I'm joined by a few members of our leadership team, including our global co-CEO, Matthias Eich, global president, Jerry Wang, and our CFO, Cody Mecca. Today, we will be sharing details from our second quarter 2025 results. The press release as well as today's presentation will be available in the investor relations section of our website at investors.ff.com. A replay of this call will also be posted there 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 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 risks and other important factors that could affect our financial results, please refer to our filings with the SEC. In today's call, we will be covering the following topics, the second quarter overview and financial highlights, our development progress, together with our third quarter and full year outlook. The management team will also address questions from our shareholders submitted electronically in advance of this call. With that, I will now turn over the call to Matthias Eid.

Thank you, John. Hi, everyone. This is Matthias, the Global Co-CEO of Faraday Future. I am pleased to share our key developments for the second quarter of 2025 through today, structured around our seven Tier 1 strategic goals and pillars from S1 to S7, highlighting meaningful progress in operations, improvements in our business and financial fundamentals, and continued strategic execution across our AI-driven mobility roadmap. The FX Super 1 launch campaign has demonstrated tangible commercial impact, underscoring the effectiveness of our influencer-led marketing strategy. In Q2, we received over 4,000 FX Super 1 non-binding, non-refundable pre-orders from both B2B and B2C channels. By July 31, 2025, we received total non-binding, non-refundable pre-orders exceeding 10,000 units. The campaigns reach was amplified through coordinated digital content and endorsement from high-profile co-creation participants, resulting in broad social media visibility and accelerated customer engagement across both institutional and consumer segments. As X continues to build strong momentum with its innovative B2B and B2C sales model, we have confidence that we'll further strengthen our pre-ordered pipeline. By far, FX's B2B strategy has covered multiple key FF partners. We are confident that our innovative B2B-B2C co-creation model will further strengthen our pre-ordered pipeline. On July 17, 2025, we hosted the global initial launch of the FX Super 1 MPV in Los Angeles, where we unveiled two groundbreaking global first products. the SX Super 1 AI EV MPV and the SX Super 1 EAI Space System. Alongside the SX EAI embodied AI Agent 6x4 architecture, the launch event was live-streamed to a global audience and attended by hundreds of guests. It was a tremendous success, generating a sensational impact in both the United States and China in powerfully promoting the FX brand and the FX Super One product. One more significant achievement of our delivery in the second quarter is that Mariah Carey, award-winning best-selling female artist of all time and global top music legend, features prominently the SF91 2.0 Futurist Alliance in her new music video type Dangerous alongside the SF01. This reflects a new phase of global cultural co-creation for FF attracting top-tier celebrities and reinforcing FF identity as a true ultimate AI tech luxury brand. Moving to S2 and S3 product technology. This quarter, we have officially released software version 2.00.58 for FF91 delivered via OTA. This version improves software stability and user experience and features the latest FFAI 2.0. Additionally, FS, a proprietary next generation voice assistant and ecosystem service platform, powered by large language models, LLM, and generative AI, GAI, was set to launch via imminent OTA update. Our technological advancement is a key driver for our long-term platform strategy. Regarding regulatory compliance, the FMVSS, Federal Motor Vehicle Safety Standards validation and pre-verification testing for FX has been in progress. Additionally, we have officially submitted a patent application for our Super 1 EAI phase product, shifting to S4 our progress on supply chain industrialization and delivery. And the plan is completed production and delivery of the FF91, B20 model, and continues to produce subsequent vehicles. We also proactively prepared to produce the FX Super 1. As of today, we have completed initial preparation for production, including layout planning, equipment procurement and installation, process documentation, personal planning, and training, and the development of quality and logistics standards. FX Super 1 has officially entered the parts procurement and production preparation phase at our Hanford factory. Moving into trial production internally, we have kicked off the final countdown, targeting the first vehicle to roll off the line by year end. Regarding S5, our financial strategy and capital markets activity, Jerry, our global president, will provide details shortly. Our efforts in the Middle East and China and Essex made us progress this quarter in our key markets beyond the US as part of our third pole strategy. Within our broader global expansion roadmap, we achieved a key milestone in the Middle East during the second quarter. We formally signed lease and received the keys to our new facility in Ras Al Khaimah economic zone. With the handover complete, Site preparation is now underway and our local team is preparing to assume operational responsibilities. The RACAS facility is expected to support future regional vehicle customization and potential SKD semi-knockdown or CKD complete knockdown assembly operations. strategies that enable cost-effective local assembly accessibility. This progress further advances our presence across the Middle East and North Africa region and reinforces our dual-home plus third-pole operating model. Finally, let's look at S7. On the operations front, we were pleased to welcome back our founder, Y.T. Jha, who rejoined the company as a co-CEO. alongside me this past quarter. Since he joined company, we have achieved a major leap in both operational and capital fundamentals. Market confidence has rebounded significantly, and the company's market capitalization has increased nearly 300%. Our operations team continued to advance the corporate comprehensive compliance roadmap, ensuring full compliance across all areas from company level governance to facility operations and product standards. On the system side, we implemented the PPTIA framework across the company. The fundamental framework has achieved significant results in cost reduction, efficiency improvement, and streamlined operations. We continue to strengthen our government relationships. We've received strong endorsements from California political leaders. and positive comments from members of Congress in Washington, D.C. for the bridge synergy. We participated in several high-profile events this quarter to showcase our vehicles and highlighted our global engagement, including a business roundtable at the White House. In July, we hosted a successful reception at the Capitol Hill Club, where we showcased the FX Super One and the FF91. The event included private meetings, with over a dozen U.S. lawmakers focused on terrorist technology and American manufacturing. We were honored by the strong turnout and interest in FS's role in advancing domestic EV production. In addition, our global bridge strategy was backed by Donald Trump Jr., who expressed support for our commitment to U.S. manufacturing recognizing FS's role in advancing innovation. creating jobs and supporting America's economic comeback. On August 16 at Pebble Beach, FF unveiled its EAI and crypto dual flywheel and dual BRIT echo strategy and officially launched the C10 treasury plan. The first C10 treasure product based on the top 10 crypto assets basket indexed by a US listed company, along with the release of the C10 index. The C10 treasury will accumulate and compound a portfolio of the world's top 10 crypto assets with the goal of becoming the top treasury for the C10 basket. Phase one targets purchase totaling 500 million to 1 billion subject to securing necessary funding starting with an initial 30 million purchase by building an independently operating mutually empowering Web2 plus Web3 dual engine growth system, we aim to accelerate the execution of our EAI crypto strategy and maximize value for our stockholders. Now let's welcome Cody Mecca, our CFO, to walk through the financial results for the quarter.

Thank you, Matthias. Hello, everyone. I'll walk you through several key metrics that highlight both our operational execution and improving financial position in Q2 2025. For the quarter, our net loss from operations was 48.1 million compared to 50.6 million in the same period in 2024, excluding depreciation, amortization, and stock-based compensation. The adjusted operating loss stood at approximately $27.4 million, made up of $7.3 million in cost of revenue, $4.8 million in R&D, $1.9 million in sales and marketing, and $13.4 million in G&A. The monthly operating loss is approximately $9 million during this quarter. These numbers reflect our disciplined cost management, even as we continue to invest in FX-related engineering, talent expansion, and strategic ramp-up initiatives. For the six months ended June 30, 2025, operating cash outflow totaled $43.6 million, a 50% increase from $29.1 million for the same period in 2024. This increase was primarily driven by timing of the payments and the operational ramp up of the FX platform. The increase in operating cash usage reflects our ongoing investments in product development, strategic execution, and cost discipline as we position the company for growth. Our financing activities generated $55.1 million in the net cash inflows during the six months ended June 30, 2025, a 106% increase from $26.7 million in the same period of the prior year. As of August 12, Subsequent to Q2's end, we received an additional $45.7 million in financing. Our financing efforts have meaningfully bolstered our liquidity with quarter-end cash position reaching an 18-month high. This improvement reflects our ability to secure capital despite a constrained macroeconomic environment. While total liabilities grew by approximately $29.4 million over the six-month period, much was due to mark-to-market adjustments rather than new financing, highlighting the balance sheet's sensitivity to equity-linked valuation changes under fair value accounting. In summary, our Q2 performance reflects meaningful progress across both capital liquidity and operational fronts. We remain focused on executing strategic investments aligned with our core roadmap while optimizing capital deployment and driving toward long-term sustainable growth. I will now invite Jerry Wong, Global President of FF, to provide some comments.