Q1 2022 Faraday Future Intelligent Electric Inc Earnings Call

May 23, 2022

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Speaker 1: Ladies and gentlemen, thank you for standing by. Our presentation will begin momentarily. Ladies and gentlemen, thank you for standing by. Our presentation will begin momentarily. Thank you all for your patience.

Operator 2: Ladies and gentlemen, thank you for standing by. Our presentation will begin momentarily. Ladies and gentlemen, thank you for standing by. Our presentation will begin momentarily. Thank you all for your patience.

Operator: Ladies and gentlemen, thank you for standing by. Our presentation will begin momentarily. Ladies and gentlemen, thank you for standing by. Our presentation will begin momentarily. Thank you all for your patience.

Ladies and gentlemen, thank you for standing by our presentation will begin momentarily, ladies and gentlemen, thank you for standing by our presentation will begin momentarily. Thank you all for your patience.

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Speaker 2: Bye Bye.

Speaker 2: .

Speaker 1: Good afternoon and welcome to Faraday Futures first quarter 2022 earnings conference.

Operator 3: Good afternoon, and welcome to Faraday Future's Q1 2022 Earnings Conference Call. Today's call is being recorded, and we have allocated one hour for prepared remarks and Q&A. At this time, I would like to turn the conference over to Mark Connelly, Vice President of Investor Relations. Thank you. You may begin.

Operator: Good afternoon, and welcome to Faraday Future's Q1 2022 Earnings Conference Call. Today's call is being recorded, and we have allocated one hour for prepared remarks and Q&A. At this time, I would like to turn the conference over to Mark Connelly, Vice President of Investor Relations. Thank you. You may begin.

Good afternoon, and welcome to Saturday Futures first quarter 2022 earnings conference call.

Speaker 1: Today's call is being recorded, and we have allocated one hour for prepared remarks and Q&A. At this time, I would like to turn the conference over to Mark Connolly, Vice President of Investor Relations. Thank you. You may begin.

Today's call is being recorded and we have allocated one hour for prepared remarks and Q&A at this time I would like to turn the conference over to Mark Connelly Vice President of Investor Relations. Thank you you may begin.

Mark Connelly: Thank you and welcome everyone to Faraday Future's Q1 2022 earnings call. We filed our first quarter earnings report on Form 10-Q with the SEC today, 23 May 2022, and issued a press release summarizing those results. Joining the call today from Faraday Future is our Global Chief Executive Officer, Dr. Carsten Breitfeld, and our Interim Chief Financial Officer, Becky Roof. On today's call, we will provide an update on current business conditions, the status of our FF 91 vehicle program, and discuss our first quarter financial results. You can find a copy of the Form 10-Q and the Q1 2022 press release now, and a replay and transcript of this call later today in the investor relations section of our website at investors.ff.com.

Speaker 3: Thank you and welcome everyone to Faraday Futures first quarter 2022 earnings call. We filed our first quarter earnings report on Form 10-Q with the SEC today, May 23, 2022, and issued a press release summarizing those results.

Thank you and welcome everyone severity futures first quarter 2022 earnings call. We filed our first quarter earnings report on Form 10-Q, with the SEC today May 23, 2022 and issued a press release summarizing those results.

Speaker 3: Joining the call today from Faraday Future is our Global Chief Executive Officer, Dr. Karsten Breitfeld, and our Interim Chief Financial Officer, Becky Roof.

Joining the call today from Saturday future as our global Chief Executive Officer, Dr. Karsten breaks out and our interim Chief Financial Officer Becky roof.

Speaker 3: On today's call, we will provide an update on current business conditions, the status of our FF91 vehicle program, and discuss our first quarter financial results.

On today's call, we will provide an update on current business conditions. The status of our S. S. Nine one vehicle program and discuss our first quarter financial results.

Speaker 3: You can find a copy of the Form 10-Q and the Q1 2022 press release now and a replay and transcript of this call later today in the investor relations section of our website at investors.ff.gov.

You can find a copy of the Form 10-Q end of Q1 2022 press release, now and a replay and transcript of this call later today in the Investor Relations section of our website at investors <unk> F S Dot com.

Speaker 3: 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 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.

Mark Connelly: 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 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. With that, I will turn the call over to Dr. Carsten Breitfeld, Global CEO of Faraday Future.

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 representing our 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.

Speaker 3: These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.

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 with that I will turn the call over to Dr. Carson Brightcove global CEO of Faraday future.

Speaker 3: For further discussion of the material risks and other important factors that could affect our financial results, please refer to our filings with the.

Speaker 3: With that, I will turn the call over to Dr. Carson Breitfeld, global CEO of Faraday Future.

Speaker 4: Thank you, Mark, and thank you, everyone, for joining us today. I would like to start by thanking Faraday Futures shareholders, employees, advisors, and suppliers for their commitment and support.

Carsten Breitfeld: Thank you, Mark, and thank you everyone for joining us today. I would like to start by thanking Faraday Future's shareholders, employees, advisors, and suppliers for their commitment and support. As of this morning, I'm happy to say, we are once again current with our quarterly financial filings, and we expect to file our S-1/A promptly. I'm also very happy to be able to introduce you to our Interim CFO, Becky Roof. Becky has extensive public and private company CFO experience, and we are delighted to have her here with us at Faraday Future. Becky brings exceptional experience and relationships that are helping us quickly strengthen and build our financial reporting and systems. Chuck McBride, who has served briefly as our CFO, left the company for health reasons, and our board has a search for a permanent CFO underway.

Thank you Mark.

Thank you everyone for joining us today.

I would like to start by thanking part of it gets us that hold us employees.

And supplier for their commitment and support.

Speaker 4: As of this morning, I'm happy to say we are once again current with our quarterly financial filings and we expect to file our S-1 mail promptly.

As of this morning, I'm happy to say that.

We are once again current with our quarterly financial filings and we expect to file our S. One.

Okay.

Speaker 4: I'm also very happy to be able to introduce you to our interim CFO , Becky Wu.

I'm also very happy to be able to introduce you to our interim CFO Becky.

Speaker 4: Becky has extensive public and private company CFO experience and we are delighted to have her here with us at Verity.

But he has extensive public and private company CFO experience and we are delighted to have her yet with us predict future. Thank.

Speaker 4: Becky brings exceptional experience and relationships that are helping us quickly strengthen and build our financial reporting.

He brings exceptional experience and relationships that are helping us quickly strengthening our financial reporting systems.

Speaker 4: Chuck McBride, who has served briefly as our CFO , left the company for health reasons, and our board has a search for a permanent CFO under way.

Chuckling right, who has so briefly I'll, let CFO left the company for health reasons.

And our board has a search for permanent CFO underway.

Speaker 4: But our most critical finance priority right now is to strengthen our systems and processes and backing is making the case.

Carsten Breitfeld: Our most critical finance priority right now is to strengthen our systems and processes, and Becky is making that happen. To begin, I'm going to briefly discuss the special committee review, which was recently completed, and the additional remediation actions that are being implemented. I will review our Q1 progress and bring you up to date on our path to launching the FF 91 later this year. I will pass the call to Becky to discuss our Q1 results. Let's get started. In Q1 2021, our board of directors formed a special committee to investigate allegations of inaccurate company disclosures. That investigation resulted in a significant delay in the filing of our Q3 2021 financials and our full year 2021 financials.

Our most critical clients priority right now is to strengthen our systems and processes and banking is making that happen.

Speaker 4: To begin, I'm going to briefly discuss the special committee review, which was recently completed and the additional remediation actions.

To begin I'm going to briefly discuss the special Committee review, which was recently completed the additional remediation actions.

Speaker 4: Then I will review our first quarter progress and bring you up to date on our path to launching the FF91 later this year. And then I will pass the call to Becky to discuss our Q1 results. So.

And how about revenue our first quarter progress and bring you up to date on a path for launching the asset backed loans I don't yeah.

And then I will pass it called Becky to discuss our Q1 results. So let's get started.

Speaker 4: In the first quarter of 2021, our board of directors formed a special committee to investigate allegations of inaccurate company disclosures.

In the fourth quarter of 2021, our board of directors formed a special committee to investigate allegations.

That great company.

Speaker 4: That investigation resulted in a significant delay in the filing of our Q3 2021 financials and our full year.

That investigation resolved it isn't a significant delay the filing of our Q3 2021 financial.

And our full year 2021 financial.

Carsten Breitfeld: That investigation was completed in April, and our quarterly and annual financial filings are once again current. The special committee concluded that, except as described in the company's Form 8-K, which was filed on 1 February 2022, other substantive allegations of inaccurate disclosures that the special committee evaluated, including those made in the short seller report, were not supported by the evidence reviewed. However, the special committee did identify certain issues, including inconsistencies in statements that were made to some investors, weaknesses in some internal controls, and in our corporate compliance structure. These are detailed in the 8-K from 1 February 2022. The special committee looked at an exceptionally wide range of issues and recommended a number of remedial actions which have been implemented or are being implemented right now.

Speaker 4: That investigation was completed in April and our quarterly and annual financial filings are once again.

They didn't mitigation was completed in April and our quarterly and annual financial filings I once again correct.

Speaker 4: The special committee concluded that, except as described in the company's form 8K, which was filed on February 1st, 2021,

The Special Committee concluded that except as described in the company's form 8-K, which was filed in February 2022.

Speaker 4: Other substantive allegations of inaccurate disclosures that the special committee evaluated, including those made in the Schottzeller report, were not supported

Although substantial allegations of an accurate discloses that special committee.

Including those state and the thought that it'll be part.

Were not supported by the evidence reviewed.

Speaker 4: However, the special committee did identify certain issues, including inconsistencies in statements that were made to some investors, weaknesses in some internal controls, and in our corporate compliance structure.

The special Committee did identify some issues clothing and consistency statements that were made to some Midwest us weaknesses and some internal controls and then our corporate compliance structure.

Speaker 4: These are the details in the 8K from February 1st.

This update detailed in the 8-K from February 2022.

Speaker 4: The special committee looked at an exceptionally wide range of issues and recommended a number of remedial activities.

A special comments you looked at an exceptionally wide range. It should also be commended the number of remedial actions, which have been implemented all are being implemented right now.

Speaker 4: which have been implemented or are being implemented.

Carsten Breitfeld: These remedial actions include certain employees being separated from the company, changes in the roles and responsibilities of certain other employees, disciplinary actions, changes in the way we collect and process information, and some organizational changes. The summary of the special committee investigation and its findings can be found in our 2021 10-K, which we filed on 13 May 2022. Now, speaking both as CEO and as member of the board, I sincerely believe that the remediation actions we have taken are a very positive step for our organization and for all of our stakeholders. I want to thank Sue Swenson, our Executive Chairperson, who led the special committee, for her leadership, and the entire board for their hard work and commitment to this important and necessary process.

Speaker 4: These remedial actions include certain employees being separated from the company, changes in the roles and responsibilities of certain other employees,

These remedial actions.

He is being separated from the company changes in the role and responsibilities of sudden say employees.

Speaker 4: The disciplinary actions changes in the way we collect and process information.

This tipping their reactions changes in the way, we collect and.

Process information and some organizational changes.

Speaker 4: The summary of the special committee investigation and its finding can be found in our 2021 10-K, which we filed on May 13th.

In summary, also special Committee investigation in its finding can be policy at all on 2020, One 10-K, which we filed on May 13th 2022.

Speaker 4: Now, speaking both as CEO and as member of the board, I sincerely believe that the remediation actions we have taken are a very positive step for our organization.

Right.

Now speaking, both as CEO and as a member of the board I sincerely believe that the remediation actions, we have taken a very positive step for our organization.

And for all of our stakeholders.

Speaker 4: I want to thank Sue Swenson, our executive chairperson, who led the special committee, for her leadership. In the end, I applaud for the hard work.

I want to thank Sue Swenson, our executive Chair Christian who like the special Committee, but our leadership.

And the entire board for their hard work and commitment to this necessary of course.

Speaker 4: I truly believe that we are already a stronger and better company as a result of this investigation and the remediation actions we are taking.

Carsten Breitfeld: I truly believe that we are already a stronger and better company as a result of this investigation and the remediation actions we are taking. Now let me turn to the Q1 and our business progress. I'm very pleased to say that thanks to the exceptional dedication of our team, we continue to make impressive progress with our business plan. I'm especially pleased by what I'm seeing during my visits to our Hanford manufacturing plant under the very capable leadership of Matt Tall, our head of manufacturing, and his excellent team. With the major concrete work complete, we have been able to accelerate the pace of progress. The systems and equipment installation work has been first rate, and we are very much on track.

I truly believe that we are already a stronger and better company as a result of this investigation and remediation actions.

Yeah.

Now, let me turn to the first quarter and how our business progress.

Speaker 4: I'm very pleased to say that thanks to the exceptional dedication of our

I'm very pleased to say that.

With the exception of the vacation oncology.

Speaker 4: We continue to make impressive progress with our

We continue to make impressive progress with all of us.

Speaker 4: I'm especially pleased by what I'm seeing during my visits to our Hanford manufacturing plant under the very capable leadership of Matt Thall, our head of manufacturing, and his excellent leadership.

I'm, especially pleased by what I'm seeing going by with it still a handful manufacturing plants under the very capable leadership hopes that tall, our head of manufacturing and excellent team.

Speaker 4: With the major concrete work complete, we have been able to accelerate the pace of progress.

It's a major concrete brick complete we have been able to accelerate the pace of progress.

Speaker 4: The systems and equipment installation work has been first grade and we are very

And equipment installation work has been first rate.

Okay.

Speaker 4: We recently announced that we marked our fourth and fifth milestones, the fourth being production intent vehicles built for final engineering validation and certification.

Carsten Breitfeld: We recently announced that we marked our fourth and fifth milestones, the fourth being production intent vehicles built for final engineering, validation, and certification. The fifth, start of mechanical and electrical systems installation. Back in February, we celebrated the completion of the first production intent vehicle built in Hanford. If you have been following us on social media, you will have seen that several more production intent vehicles are being assembled now, and each new production intent vehicle is built for a specific purpose and use, and each one goes closer to the final production. We will be building many more over the next few months for use in testing, validation, and also for marketing. As we build more production intent cars, you will begin to see more of them at outside events, and we are beginning already to ramp up our visibility.

We recently announced that the mark of a false sense of milestones.

Walls are being protection production intent vehicles build full title engineering validation and certification.

Speaker 4: And this is the start of mechanical and electrical systems.

And since its start of mechanical and electrical systems and 12 years.

Speaker 4: Back in February , we celebrated the completion of the first production intent vehicle build.

Back in February .

Leverage at the completion of the first production intent vehicle both in half one.

Speaker 4: If you have been following us on social media, you will have seen that several more production intent vehicles are being assembled.

If you've been following us on social media, you will have seen but several of them all production intent vehicle are being assembled now.

Speaker 4: and each new production intent vehicle is built for a specific purpose and use, and each one goes closer.

And each new production intent.

As for specific purpose use and each one goes closer to the pilot program.

Speaker 4: We will be building many more over the next few months for use in testing, validation, and all.

We will be building many more over the next few months for use in testing validation in multiple markets.

Speaker 4: As we build more production-intent cars, you will begin to see more of them at outside events, and we are beginning already.

As we built more production in house, you will begin to see malls than that outside of your brands and we are beginning already to ramp up our visibility currently.

Carsten Breitfeld: Currently, we are still dedicating most of our prototypes and production intent vehicles to testing and validation. By the end of Q2, we expect to have enough on hand to put them in front of potential buyers and investors more often. We will, of course, continue to welcome investors at our Hanford production facility and headquarters. About 80% of the equipment we need at Hanford is already on site, and the rest is on schedule to be delivered. Previously delivered equipment is being readied for installation. As a reminder, completion of equipment installation is a sixth and final milestone before we start our production. I want to thank our vendors, our contractors, our employees, and everyone else who has helped keep us on the schedule during the very challenging period for the economy and for our team.

Speaker 4: Currently, we are still dedicating most of our prototypes and production intent vehicles to testing and validation.

Yeah, so dedicating most of our prototypes and production intent vehicle testing and validation.

Speaker 4: But by the end of the second quarter, we expect to have enough on hand to put them in front of potential buyers and investors more.

But by the end of the second quarter, we expect to have enough on hand to put them in front of potential buyers and investors more.

Speaker 4: We will, of course, continue to welcome investors at our Hanford production facility.

We will of course continue to World Cup Investor with a handful of production facility at headquarters.

Speaker 4: About 80% of the equipment we need at Hanford is already on site.

About 80% of the equipment, we need at tangible it is already on site.

The rest is on schedule to be delivered.

Speaker 4: Previously delivered equipment is being readied for installation.

Previously delivered equipment is being ready for installation.

Speaker 4: As a reminder, completion of equipment installation is a fix and final milestone before we close.

As a reminder, completion of equipment installation.

And final milestone before they start to work for that.

Speaker 4: I want to thank our vendors, our contractors, our employees, and everyone else who has helped keep us on the schedule during the very challenging period for the economy.

I want to thank all windows, our contractors or employees and everyone else, who has helped keep us on the scheduled during the very challenging period for the economy and policy.

Speaker 4: The FF91 program is on track and proceeding well, and we are also making important progress on our long-term business plan.

Carsten Breitfeld: The FF 91 program is on track and proceeding well, and we are also making important progress on our longer-term business plan. This includes the development of the FF 81 program. During Q1 2022, we announced that Myoung Shin, an automotive manufacturer based in South Korea, has been contracted to manufacture the FF 81, which will be Faraday Future's first high volume vehicle. Myoung Shin is a parts supplier and automotive manufacturer for numerous OEMs and is located near Seoul in South Korea. Its plant in Gunsan, where the FF 81 will be manufactured, offered scale, flexibility, and an attractive port access. Under the agreement, Myoung Shin will maintain sufficient manufacturing capabilities and capacity to supply FF 81 vehicles in accordance with company forecast.

The other thing I'm on program is on track and proceeding well and we're also making important progress on our longer term business plan.

This includes the development of C. H one program.

Speaker 4: During the first quarter in 2022, we announced that Myongshin, an automotive manufacturer based in South Korea, has been contracted to manufacture the FF8-1, which will be Faraday Future's first high-volume car.

During the first quarter in 'twenty or 'twenty to be announced at the auction and automotive manufacturer based in South Korea has been contract detriment effect.

One which would be part of the future first eyeball volume vehicle.

Speaker 4: Myongshin is a parts supplier and automotive manufacturer for numerous OEMs and is located near Seoul in South Korea.

We don't think it's a part to play out and automotive manufacturer partner, most Oems and is located in.

In South Korea.

Speaker 4: plant in Gunzhan where the HF-H1 will be manufactured of a scale, flexibility, and an attractive portability.

Its plant and Ghansham the H one.

On boobie manufactured but scale flexibility and an attractive cortex.

Speaker 4: Under the agreement, Myongshin will maintain sufficient manufacturing capabilities and capacity to supply FF81 vehicles in accordance with company standards.

Under the agreement, we auction will maintain sufficient manufacturing capabilities and capacity to supply eight one vehicles in accordance with company Coca.

Carsten Breitfeld: Our agreement with Myoung Shin is capital efficient and a central part of our hybrid manufacturing strategy to reach high volume production quickly. We lease the Hanford plant, where we will build the FF 91, and Myoung Shin will provide the capital for the new plant in South Korea. This approach allows Faraday Future to leverage capital further and move much faster than if we build our own two plants ourselves. In addition, I'm very happy to announce that we have signed our lease for our first flagship store in Beverly Hills, California. We have also chosen a designer and began initial design build. In our Q3 2021 and full year 2021 filings, we announced that we had 401 pre-orders as of 31 March 2022.

Speaker 4: Our agreement with MyeongChin is capital-efficient and a central part of our hybrid manufacturing strategy to reach high-volume production.

Our agreement with me auction, it's capital efficient and the central part of our hybrid manufacturing strategy.

I want to production quickly.

Speaker 4: We leave the Hanford plant where we will build the SF9-1 and Myeongching will provide

Elyse you had planned maybe mobility at nine one.

And we are seeing that provides the capital for the new plants in South Korea visit.

Speaker 4: This approach allows Faraday Future to leverage capital further and move much faster than if we built our own.

This approach allows for the future to leverage capital cruiser and much faster than if he goes on to pump ourselves.

Speaker 4: In addition, I'm very happy to announce that we have signed our first flagship store in Beverly Hills.

And Additionally, I'm very happy to announce that we have signed all these fell off with flagship store in Beverly Hills, California.

Speaker 4: We've also chosen a designer and began initial design.

They are also choosing a designer and began initial design.

So quite a 2021 and full year 2021 filings, we announced but you had 400 a month pre orders as of March 31st 2022.

Speaker 5: Pre-orders are fully refundable, non-binding, paid deposit.

Carsten Breitfeld: Pre-orders are fully refundable, non-binding, paid deposits for the FF 91 Futurist Alliance and/or the FF 91 Futurist vehicles available initially for sale to customers in the US and in China. FF 91 Futurist Alliance pre-orders require a $5,000 deposit for customers in the US, and a CNY 50,000 deposit for customers in China. FF 91 Futurist pre-orders require a $1,500 deposit for customers in the US and a CNY 20,000 deposit for customers in China. As of today, our pre-order book is a reasonable match to our production expectations through 2022 year-end. As we begin to roll out our marketing program, I expect pre-orders to increase and keep pace with our production capacity. Keep in mind that the FF 91 is not a high-volume car.

All of us are fully refundable non binding page deck.

Speaker 4: for the FF Neumann Futurist Alliance and all the FF Neumann Futurist vehicles available initially for sale to customers in the U.S.

Well I'm not sure who I am.

Oh, Yeah, I'm not sure trust vehicles.

Bailable initial lease wholesale customer in the U S.

Okay.

Speaker 4: FF91 Futurist Alliance pre-orders require a $5,000 deposit for customers in the U.S., and $50,000

Is it nine months interest alliance pre orders require five southern blot implicit forecast about the U S.

And 50000 renminbi deposit for customers in China.

Speaker 4: FF9 by Futurist pre-orders require a $1,500 deposit for customers in the U.S. and a $20,000 renminbi deposit.

It's not about pre orders for quite a 1000 I find that a lot of deposits per customer in the U S and at 20000 Triple B plus.

That's a core customer in China.

Speaker 4: As of today, our pre-order book is a reasonable match to our production expectations through 2022 years.

As of today.

Order book is it reasonable to match our production expectations through 2022, yet.

Speaker 4: As we begin to roll out our marketing program, I expect pre-orders to increase and keep pace with.

As we begin to roll out our marketing program I expect orders to increase and keep pace with our production capacity.

Speaker 4: Keep in mind that the FF91 is not a high-volume car. In 2023, for example, we expect to produce about 6,000 to 8,000 cars as we ramp production.

Keep in mind that the F. Nine one it's not the high volume car in 2023. For example, we expect to produce about six to 8000 cars as we ramp production.

Carsten Breitfeld: In 2023, for example, we expect to produce about 6,000 to 8,000 cars as we ramp production. We are not looking to build an order book with pre-orders that we can't fill. Our marketing program for the FF 91 is built around Faraday Future's unique user ecosystem concept. Our marketing will be heavily online and rely on our branding campaign, our co-creation partners, and our user community. Plan to show our car at car shows and high-end consumer events, and we'll be participating in a number of investor and consumer events to further showcase our production intent vehicles. Potential customers are going to be seeing a lot more of us as we move closer to launch. The last six months have been challenging, and I want to thank our employees who have continued to demonstrate exceptional commitment and dedication.

Speaker 5: So we are not looking to build an order book with pre-orders that we can't fill.

So we are not looking to place an order books was pre orders 50 capsule.

Speaker 4: Our marketing program for the FF91 is built around Faraday Future's unique user ecosystem.

Our marketing programs.

But those are all sort of if you took the unique user ecosystem called yet.

Speaker 4: Our marketing will be heavily online and rely on our branding campaign, our co-creation partner.

Our marketing will be heavily online and rely on our branding campaign.

Our cocreation perking up and our use of compensation.

Speaker 5: plan to show our car at car shows and high-end consumer

That's a show or a car at castle and high income consumer events and will be participating in a number of investor and consumer events to showcase all protection type vehicles.

Speaker 4: will be participating in a number of investor and consumer events to further showcase our production.

Speaker 5: Potential customers are going to be seeing a lot more of us as we move closer.

Potential customers are going to be seeing a lot more about as we move closer to launch.

Speaker 5: The last six months have been challenging and I want to thank our employees who have continued to demonstrate exceptional

The last six months have been challenging and I want to thank our employees with continued to demonstrate exceptional.

Medication.

Carsten Breitfeld: The team kept us on track as we have navigated many internal and external challenges. In a tough environment, we are still making excellent progress. Now I'm going to turn over the call to our CFO, Becky Roof. Becky, please.

Speaker 5: The team kept us on track as we have navigated many internal and external challenges. In a tough environment,

The team kept us on track actually has navigated many internal and external challenges.

In a tough environment, we are still making excellent progress.

Speaker 5: So now I'm going to turn over the call to our CFO , Becky.

So now I'm going to turn over the call to our CFO Becky.

Thank you.

Speaker 6: Thank you, Karsten. It's great to be with you today, and I'm excited to be working with you and with the entire Faraday Future team.

Operator 1: Thank you, Carsten. It's great to be with you today, and I'm excited to be working with you and with the entire Faraday Future team. As Carsten explained earlier, I'm here as Interim CFO. I'm a managing director with AlixPartners, a financial advisory and consulting firms that provide short-term solutions to companies like Faraday Future. My mandate here is straightforward. Get our filings up to date, put programs in place to address weaknesses in internal systems and controls, advance the capital raise process, and help Carsten and Sue identify a permanent CFO. Teams I led at Lordstown Motors, Eastman Kodak, and elsewhere accomplished similar goals. In a relatively short time, I am happy to say that the team we have here has gotten our filings up to date and is making good progress on our other priorities.

Rebecca Roof: Thank you, Carsten. It's great to be with you today, and I'm excited to be working with you and with the entire Faraday Future team. As Carsten explained earlier, I'm here as Interim CFO. I'm a managing director with AlixPartners, a financial advisory and consulting firms that provide short-term solutions to companies like Faraday Future. My mandate here is straightforward. Get our filings up to date, put programs in place to address weaknesses in internal systems and controls, advance the capital raise process, and help Carsten and Sue identify a permanent CFO. Teams I led at Lordstown Motors, Eastman Kodak, and elsewhere accomplished similar goals. In a relatively short time, I am happy to say that the team we have here has gotten our filings up to date and is making good progress on our other priorities.

Thank you Carsten.

Great to be with you today I'm excited to be working with you and let the entire caridad future team.

Speaker 6: As Carson explained earlier, I'm here as interim CFO . I'm the managing director with Alex Partners, a financial advisory and consultant firm that provides short-term solutions to companies like Faraday Future. My mandate here...

That's question explained earlier I'm here as interim CFO .

I mean, it's interacted with Alix partners financial advisory and consulting firms that provide short term subject to company like they're at a future mine.

My mandate here is straightforward.

Speaker 6: that our filings up to date, set programs in place to address weaknesses in the internal systems and controls, advance the capital.

I ended up today.

Our grandson play children weaknesses, and internal systems and controls.

And then the capitalized cost.

Speaker 6: and help Carson and Sue identify a permanent CFO .

I'm help Carson NC identify a permanent CFO .

Speaker 6: Teams I led at Lordstown Motors and Eastman Kodak and elsewhere accomplished similar goals.

James on lab at Lordstown Motors, and Eastman Kodak and elsewhere accomplish similar adults.

Speaker 6: In a relatively short time, I am happy to say that the team we have here has gotten our filings up to date and is making good progress on our other priorities.

In a relatively short time I'm talking.

The team we have here.

I'll start in our filings up to date on this.

Making good progress on our other priorities.

Speaker 6: While the team here at Faraday Future is smaller than it needs to be, it is very high quality and we are building on a very solid foundation.

Operator 1: While the team here at Faraday Future is smaller than it needs to be, it is very high quality and we are building on a very solid foundation. Our finance and accounting teams have been working exceptionally hard to get our filings up to date, and you should expect us to file our amended S-1/A shortly. Faraday Future reported an operating loss of approximately -$149 million during the three months ended 31 March 2022, as compared to an operating loss of approximately -$19 million for the three months ended 31 March 2021.

Rebecca Roof: While the team here at Faraday Future is smaller than it needs to be, it is very high quality and we are building on a very solid foundation. Our finance and accounting teams have been working exceptionally hard to get our filings up to date, and you should expect us to file our amended S-1/A shortly. Faraday Future reported an operating loss of approximately -$149 million during the three months ended 31 March 2022, as compared to an operating loss of approximately -$19 million for the three months ended 31 March 2021.

While the team here at Paradise keeps or smaller than it needs to be it is very high quality and we are building on a very solid foundation.

Speaker 6: Our finance and accounting teams have been working exceptionally hard to get our filings up to date, and you should expect us to file our amended S1A shortly.

Our finance and accounting teams have been working exceptionally hard ticket on filings up to date and you should expect us to file our amended S. One a shortly.

Speaker 6: Fair Day Future reported an operating loss of approximately $149 million during the 3 months ended March 31, 2022, as compared to an operating loss of approximately $19 million for the 3 months ended March 31, 2021.

They're they future reported an operating loss of approximately 149 million during the three months ended March 31 2022.

Carrington operating loss of approximately 19 million for the three months ended March 31 2021.

Operator 1: The increase was primarily driven by an increase in engineering, design, and testing, or ED&T services, as the company continued to re-engage suppliers and made significant purchases for ED&T services to progress the development of the FF 91, a significant increase in headcount and employee-related expenses, and an increase in professional services primarily related to the special committee investigation. Net loss increased to approximately $153 million during the three months ended 31 March 2022, as compared to an approximately $76 million loss for the three months ended 31 March 2021. Turning to our balance sheet, total assets on 31 March 2022 were $706 million, compared to $907 million total assets on 31 December 2021. Total liabilities were approximately $271 million versus approximately $340 million on 31 December 2021.

Rebecca Roof: The increase was primarily driven by an increase in engineering, design, and testing, or ED&T services, as the company continued to re-engage suppliers and made significant purchases for ED&T services to progress the development of the FF 91, a significant increase in headcount and employee-related expenses, and an increase in professional services primarily related to the special committee investigation. Net loss increased to approximately $153 million during the three months ended 31 March 2022, as compared to an approximately $76 million loss for the three months ended 31 March 2021. Turning to our balance sheet, total assets on 31 March 2022 were $706 million, compared to $907 million total assets on 31 December 2021. Total liabilities were approximately $271 million versus approximately $340 million on 31 December 2021.

Speaker 6: The increase was primarily driven by an increase in engineering design and testing, or ED&T services, as the company continued to re-engage suppliers and made significant purchases for ED&T services to progress the development of the FF91.

The increase was primarily driven by an increase in engineering design and testing our key services.

The company continued to Reengage suppliers and made significant purchases for eating into services progress with development of the mine one.

Speaker 6: a significant increase in headcount and employee-related expenses.

A significant increase in headcount and employee related expenses.

Speaker 6: and an increase in professional services primarily related to the special committee investigation.

And professional services, primarily related to the special Committee investigation.

Speaker 6: net loss increased to approximately $153 million during the three months ended March 31, 2022, as compared to an approximately $76 million loss for the three months ended March 31, 2021.

Net loss increased to approximately 153 million during the three months ended March 31, 2022, as compared to net and approximately 76 million loss for the three months ended March 31, 2021.

Speaker 6: Turning to our balance sheet, total assets on March 31, 2022 were $706 million compared to $907 million total assets on December 31, 2021.

Turning to our balance sheet huddle assets on March 31, 2022 were 706 million compared to 907 million total assets on December 31 2021.

Speaker 6: Total liabilities were approximately $271 million versus approximately $340 million on December 31, 2021.

Total liabilities were approximately 271 million personal approximately 340 million on December 31 2021.

Operator 1: Since its inception, the company has incurred cumulative losses from operations and negative cash flows from operating activities, and the company's accumulated deficit was approximately -$3 billion as of 31 March 2022. The company expects to continue to generate significant operating losses for the foreseeable future as we continue to incur expenses before we generate meaningful revenue. Cash as of 31 March 2022 was $276 million. The decrease in cash from 31 December 2021 to 31 March 2022 was about as expected, given the pressure many companies in our industry are experiencing with logistics and materials costs, and included the scheduled and on-time repayment of a $97 million note, and accrued interest. The cash balance as of 30 April 2022 was $222 million.

Rebecca Roof: Since its inception, the company has incurred cumulative losses from operations and negative cash flows from operating activities, and the company's accumulated deficit was approximately -$3 billion as of 31 March 2022. The company expects to continue to generate significant operating losses for the foreseeable future as we continue to incur expenses before we generate meaningful revenue. Cash as of 31 March 2022 was $276 million. The decrease in cash from 31 December 2021 to 31 March 2022 was about as expected, given the pressure many companies in our industry are experiencing with logistics and materials costs, and included the scheduled and on-time repayment of a $97 million note, and accrued interest. The cash balance as of 30 April 2022 was $222 million.

Speaker 6: Since its inception, the company has incurred cumulative losses from operations and negative cash flows from operating activities, and the company's accumulated deficit was approximately $3 billion as of March 31, 2022.

Since its inception.

Company has incurred chemo losses from operations and negative cash flows from operating activities and the Companys accumulated deficit was approximately 3 billion as of March 31 2022.

Speaker 6: The company expects to continue to generate significant operating losses for the foreseeable future as we continue to incur expenses before we generate meaningful revenue.

The company expects to continue to generate significant operating losses for the foreseeable future as we continue to incur expenses before we generate meaningful revenue.

Speaker 6: Cash out of March 31, 2022 was $276 million.

Cash as of March 31, 2022 was 276 million.

Speaker 6: The decrease in cash from December 31, 2021 to March 31, 2022 was about as expected, given the pressure many companies in our industry are experiencing with logistics and materials costs, and included the schedule and on-time repayment of a $97 million note and accrued interest.

The decrease in cash from December 31, 2021 to March 31, 2022 was about as expected given the pressure for many companies in our industry are experiencing with logistics and materials costs and included the schedule in on time, the attainment of a 97 million note.

Accrued interest.

Speaker 6: The cash balance as of April 30, 2022 was $222 million.

Cash balance as of April 32020, key was 222 million.

Operator 1: It was always our plan and expectation that we would raise additional funds to move beyond the initial launch of the FF 91, and while the delay in our financial filings delayed certain portions of our fundraising plans, we did make progress in the areas that were open to us. Now that we are current again, we are already ramping up our fundraising activities more broadly to ensure that we have access to, and consider, the widest range of opportunities. We have been working actively with our financial advisors through this period, and I am pleased with where we are in that process. With that, I will hand it back to Carsten.

Rebecca Roof: It was always our plan and expectation that we would raise additional funds to move beyond the initial launch of the FF 91, and while the delay in our financial filings delayed certain portions of our fundraising plans, we did make progress in the areas that were open to us. Now that we are current again, we are already ramping up our fundraising activities more broadly to ensure that we have access to, and consider, the widest range of opportunities. We have been working actively with our financial advisors through this period, and I am pleased with where we are in that process. With that, I will hand it back to Carsten.

Speaker 6: It was always our plan and expectation that we would raise additional funds to move beyond the initial launch of the FF9-1, and while the delay in our financial filings delayed certain portions of our fundraising plans, we did make progress in the areas that were open to us.

It was always our plan and expectation that we would raise additional funds to move beyond the initial launch of the F. F. Nine one and while the delay in our financial filings delay certain portions of our fundraising plans. We did make progress in the areas that were open to us.

Speaker 6: Now that we are current again, we are already ramping up our fundraising activities more broadly to ensure that we have access to and consider the widest range of opportunity.

Now that we are currently again, we are already ramping up our fundraising activities more broadly to ensure that we have access team and consider the widest range of opportunities.

Speaker 6: We've been working actively with our financial advisors through this period, and I am pleased with where we are in that process with that, I will.

We have been working actively with all financial advisers through this period.

I am pleased with where we are in that process.

With that I will hand, it back to Carsten.

Carsten Breitfeld: Thank you, Becky. Again, I'm very happy to have you on our team. I would like to wrap up with four simple reasons why we are excited about our Faraday Future today. First, the changes we are making as a result of the special committee's work are already very clearly making us a stronger and better company. Second, our FF 91 program is on track and proceeding well in a difficult external environment. The Hanford plant has achieved its first five milestones. Testing, validation, and equipment installation are proceeding, and we are on track to launch the FF 91 in Q3 2022. Third, our agreement with Myoung Shin puts our high volume program for FF 81 production on track with an attractive asset-light strategy in an ideal manufacturing location to address the mass market.

Speaker 5: Thank you, Becky. Again, I'm very happy to have you on our team.

Thank you Becky again, I'm very happy to have you on our team.

Speaker 4: I would like to wrap up with four simple reasons why we are excited about Referral-to-Future Institute.

I would like to wrap up it's for simple reasons, why we are excited about where credit your chip today.

Bruce.

Speaker 5: The changes we are making as a result of the special committee's work are already very clearly making us a stronger and better company.

The changes we are making as a result of some special committees are already very clearly, making us a stronger and better company.

Second.

Speaker 4: Our FS91 program is on track and proceeding well in a difficult external environment.

Or is it on one program is on track and proceeding well.

It's difficult it's Tom the bottleneck.

Speaker 4: The Hanford plant has achieved its first five milestones. Testing, validation, and equipment installation are proceeded.

The handful plant has achieved its first milestones testing validation and equipment installation are proceeding.

Speaker 4: And we are on track to launch the FS9.1 in Q3 2020.

And be on track to launch the Hypersound one in Q3 2022.

Speaker 4: Third, our agreement with Myeongching puts our high-volume program for FF8-1 production on track with an attractive asset-light strategy and an ideal manufacturing

Yeah.

Our agreement with Yangsheng puts or high volume programs.

H one production on track with an attractive asset light strategy.

And then ideal manufacturing location to address the mass market.

Carsten Breitfeld: Most importantly, when we launch the FF 91 in Q3, Faraday Future will be the first truly high-end luxury intelligent EV manufacturer. We expect the FF 91 to set a new standard for both driver and passenger experience and to redefine customer expectations for the future of mobility. Thank you for your time and interest in Faraday Future, and I look forward to providing you with further updates as we move closer to launch.

Speaker 4: And most importantly, when we launch the FF91 in the third quarter, Friday Future will be the first truly high-end, luxury, intelligent,

And most importantly.

When we launched the address nine one in the third quarter.

If you check will be the first truly high end luxury intelligent EV manufacturer.

Speaker 4: We expect the SF9-1 to set a new standard for both driver and passenger experience and to redefine customer experience.

We expect the first nine months to set a new standard for both driver and passenger experience.

To redefine customer expectations for the future.

Speaker 4: Thank you for your time and interest in Cryo-Day Future, and I look forward to providing you with further updates as we move closer to launch.

Thank you for your time and interest in Friday, future and I look forward to providing you with further updates as we move closer to launch.

Becky Roof: Thank you, Carsten. Operator, we're now ready to take questions.

Mark Connelly: Thank you, Carsten. Operator, we're now ready to take questions.

Thank you Carsten operator, we're now ready to take questions.

Operator 3: Thank you. At this time, we'll be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Your first question comes from Dan Ives with Wedbush. Please proceed with your question.

Operator: Thank you. At this time, we'll be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions. Your first question comes from Dan Ives with Wedbush. Please proceed with your question.

Speaker 1: Thank you. At this time, we'll be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star 2 if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we poll for questions.

Thank you at this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the queue for participants using speaker equipment. It may be necessary to pick up your handset before pressing the star key.

One moment, please while we poll for questions.

Speaker 1: Your first question comes from Dan Ives with Wedbush. Please proceed with your question.

Your first question comes from Dan Ives with Wedbush. Please proceed with your question.

Speaker 7: Yeah, thanks and congrats getting through this on the other side and important.

Dan Ives: Yeah, thanks. Congrats on getting through this on the other side, and it's important. Can you walk us through your pricing strategy in terms of, you know, where we are today and maybe going forward?

Yeah. Thanks Sundar.

That's getting through this on the other side.

It is important.

Speaker 7: So can you walk us through your pricing strategy?

So can you walk us through your pricing strategy.

Speaker 7: in terms of where we are today and maybe going forward.

In terms of.

Where we are today and maybe going forward.

Yeah.

Okay.

Speaker 8: Yeah, hi, Dan, this is Carsten speaking. Let me maybe start in reflecting a little bit on our marketing strategy. How are we getting cars to our customers? As you know, we are in the ultra-luxury segment here. This is not about big marketing campaigns. This is more about words of mouth, strategic placements of the product, having key opinion leaders and influencers. We're getting the word out of the brand that this is something different, something new, something great.

Carsten Breitfeld: Yeah. Hi, Dan. This is Carsten speaking. Let me maybe start in reflecting a little bit our marketing strategy, how we are getting cars to our customers. As you know, we are in the ultra-luxury segment here. This is not about big marketing campaigns. This is more about word of mouth, strategic placements of the product, having key opinion leaders and influencers. Getting the word out of the brand that this is something different, something new, something great. Next step is that we will have our flagship store here in the first one in Beverly Hills, like we just announced, which will open in the Q4 of this year. This will be a touch point where people can really experience the brand and experience the product. Recently, we got our product.

Yeah, Hi, Dan This is constant speaking.

Let me maybe start in reflecting a little bit of a marketing strategy, how how I'll be getting.

The cost of our customer.

As you know we on the ultra luxury segment you know if this is much about big marketing campaigns as a small about breadth of mouse placements product.

Having key opinion leaders and Influencers, who are getting the word out of some brands that this is something different something new something great.

Speaker 8: The next step is that we will have our flagship store here, the first one in Beverly Hills, like we just announced, which will open in the fourth quarter of this year. So this will be a touchpoint where people can really experience the brand and experience the product. And then recently, we got our product, we got production in 10 cars in front of customers and a couple of events. So all this leads to, let's say, what we call an indication of interest. So people are interested in the company, they sign up in the web page, they come directly to us, give their business cards. Then the next step, what we do is we convert part of these indications of interest into pre-orders. And pre-orders needs down payment, like I just said, $5,000, $1,500. And then the last step in the sales funnel is to really get orders in. And if you reflect what we have right now, we just closed this 401.

Next step is that people have our flagship store here in the first one and in Beverly Hills, like we just announced which will open in the first part of this year. So this would be a touch point, where people can really experience the brand and experienced some quota.

Recently, we got our product direction.

Carsten Breitfeld: We got pre-production in 10 cars in front of customers in a couple of events. All this leads to, let's say, what we call, indication of interest. People are interested in the company. They sign up in the webpage, they come directly to us, give their business cards. The next step, what we do is we convert, part of these indications of interest into, pre-orders, and pre-orders needs down payment, like I just said, $5,000, $1,500. The last step in the sales funnel is to really get orders in. If you reflect what we have right now, we disclosed this 401 paid pre-orders. This is basically the production which is intended for this year.

Correct and intense cost in front of customer Muslim couple of events. So all of this leads to.

Let's say what would be called indication of interest. So people are interested in the company they sign up and the webpage that come directly to ask if there is a business conference and the next step what we do is we convert.

Part of these indications of interest into them pre orders and pre orders needs downpayment like I, just said $5000 $1500 and then the last step in the sales funnel is to really get good orders.

And if you reflect what we have right now it is closest Barnett and one.

Speaker 8: paid pre-orders, this is basically the production which is in ten for this year. So it's not about the absolute numbers, it's more about how much of what we are going to produce where we see pre-orders and interest.

Paid preorders.

Basically the the production, but its intent for this year. So it's not about the absolute numbers, it's more about how much of what we are going to produce where we see the pre orders and interest already.

Carsten Breitfeld: It's not about the absolute numbers, it's more about how much of what we are going to produce, where we see pre-orders and interest already. When it comes to the detailed pricing strategy, we are not disclosing this right now. As you know, the price points are always announced just a couple of weeks before you launch a product into the market because it takes a lot of, let's say, competitive information of other competitors into account.

Speaker 8: When it comes to the detailed pricing strategy, so we are not disclosing this right now. As you know, the price points are always announced just a couple of weeks before you launch a product into the market because it takes a lot of, let's say, competitive information of other competitors into account.

When it comes to the detailed pricing strategy. So we are not disclosing this right now as you know the price points are always announced so just a couple of weeks before you launch a product into the market because it takes a lot of let's.

Let's say competitive information off as our competitors centric.

Dan Ives: Great. Could you just talk about FF 91 volume expectations? Thanks.

Speaker 7: That's great. Can you just talk about FF91 volume expectation?

Great.

Can you just talk about Fas 91 volume expectations.

Speaker 8: So, as we just said, in 2023, the full year's production 2023, we expect something between 6,000 and 8,000 units. And to ramp up in 2022, it's a couple of hundred units we are going to build during our ramp-up.

Carsten Breitfeld: As we just said, in 2023, the full year's production in 2023, we expect something between 6,000 and 8,000 units. To ramp up in 2022, it's a couple of hundred units we are going to build during our ramp up.

So as we just said in 2020 threes, a full year's production in 2023, we expect something between six and 8000 units.

And to ramp up in 2022.

A couple of hundred units, we're going to build during a ramp up.

Dan Ives: Thank you.

Thank you.

Speaker 1: Your next question comes from Trevor Young with Credit Suisse. Please proceed with your question.

Operator 3: Your next question comes from Trevor Young with Credit Suisse. Please proceed with your question.

Operator: Your next question comes from Trevor Young with Credit Suisse. Please proceed with your question.

Your next question comes from Trevor Young with Credit Suisse. Please proceed with your question.

Trevor Young: Can you all hear me? I was gonna first ask about liquidity. You know, you're at $276 million of cash at the end of Q1, and you noted talking about, you know, needing additional financing. Wanted to see how your line of sight was looking towards securing additional funding, and then what sort of feedback you've gotten from potential counterparties now that you've made your filings. You mentioned that was progressing.

Can you all hear me.

Speaker 3: I was going to first ask about liquidity. You know, you're at $276 million of cash at the end of 1Q. And you noted talking about needing additional financing.

Oh.

I was going to first ask about liquidity.

City.

You know you're at $276 million of cash.

End of <unk>.

And you noted talking about needing additional financing.

Speaker 3: wanted to see how your line of sight was looking towards securing additional funding, and then what sort of feedback you've gotten from potential counterparties now that you've made your filings.

Wanted to see how your line of sight with looking towards securing additional funding and then what sort of feedback you've gotten from potential counterparties are now that you've made your filings.

And that was progressing.

Speaker 9: Thank you for the question.

Becky Roof: Hi, and thank you for the question. We believe we have sufficient cash to reach our SOP, but raising additional funds to fully ramp up has always been part of our plans. Now that we have our filings up to date, we're moving faster again on fundraising. Realizing that it never stops, but parts clearly slowed down dramatically. Our cash needs change over time and with the speed of our production ramp. We have funding in place to cover our current ramp plans, but as we move further with the FF81 and beyond, our funding needs will rise substantially, and this was always the expectation.

Rebecca Roof: Hi, and thank you for the question. We believe we have sufficient cash to reach our SOP, but raising additional funds to fully ramp up has always been part of our plans. Now that we have our filings up to date, we're moving faster again on fundraising. Realizing that it never stops, but parts clearly slowed down dramatically. Our cash needs change over time and with the speed of our production ramp. We have funding in place to cover our current ramp plans, but as we move further with the FF81 and beyond, our funding needs will rise substantially, and this was always the expectation.

Hi, Thank you for the question.

Speaker 6: We believe we have sufficient cash to reach our SOP, but raising additional funds to fully ramp up has always been part of our plans. And now that we have our filings up to date, we're moving faster again on fundraising.

We believe we have sufficient cash to reach our S. I P, but raising additional funds to fully ramp up has always been part of our plans and now that we have our filings up to date.

We're moving faster again on fundraising.

Speaker 6: Realizing that it never stops, but parts clearly slowed down dramatically.

Realizing that it never stops, but part clearly slowed down dramatically.

Speaker 6: Our cash needs change every time and with the speed of our production ramp.

Our cash needs change over time and with the speed of our production ramp we have funding in place to cover our current ramp plans, but as we move further with the F. F. Eight one and beyond our funding needs will rise substantially and this was always see expectations.

Speaker 6: We have funding in place to cover our current ramp plans, but as we move further with the FF8-1 and beyond, our funding needs will rise substantially, and this was always the expectation.

Trevor Young: Okay, great. Thank you for that. The next question, I guess, kind of relates to the FF 81 as well, but I noticed you put out a release around the end of April about adding a brake supplier for the FF 91. Also just wanted to see in general where the supply chain stood in terms of readiness for the FF 91, and then also how some of these supplier relationships might carry over to the FF 81 and beyond.

Speaker 3: Okay, great, but thank you for that. And then the next question, I guess, kind of relates to the FF8-1 as well, but I noticed you put out a release around the end of April about adding a break supplier for the FF9-1. Also, just wanted to see in general where the supply chain stood in terms of readiness for the FF9-1, and then also how some of these supplier relationships might carry over to the FF8-1 and beyond.

Okay, great. Thank you for that.

And then the next question I guess, it kind of relates to the S.

One as well, but I noticed you put out a release around in April about adding a break supplier for the Fas 91.

Also just wanted to see in general where the supply chain stood in terms of readiness for the half at nine one and then also how some of the supplier relationships might carry over to the <unk> I think one.

Yeah.

Okay.

Carsten Breitfeld: Yeah, as you said, supply chain, of course, is the most important thing we have to take care of to build the cars. The low volume production we have is not so much a challenge from a production standpoint or from logistics, but of course, we need the right parts and the right quality at the right time. Now, as you know, supply chain in general is pretty much under pressure over the last, yeah, month or year or so. Raw material prices are going up, so logistics cost is going up. You may hear this from many EV companies that there are definitely challenges. The good thing is in our case, recall that our volume is quite small.

Speaker 8: As you said, supply chain, of course, is the most important thing we have to take care of to build the cars. The low volume production we have is not so much a challenge from a production standpoint or from logistics, but of course we need the right parts and the right quality at the right time.

Yeah, as you said supply chain of causes the most important thing we have to take care off to built the curve. The low volume production. We have is not so much a challenge from a projection standpoint or from logistics, but of course, we need the right parts and the right quality at the right time now.

Speaker 8: Now, as you know, supply chain in general is pretty much under pressure over the last month or year or so. Material, raw material prices are going up. Logistics cost is going up. And you may hear this from many EV companies that there are definitely challenges.

Now as you know supply chain in general is pretty much under pressure over the last months or year or so.

Material raw material prices going up so well.

Logistics cost as it is.

Going up and you may hear this from many companies that there's definite challenges.

Speaker 8: But the good thing is, in our case, recall that our volume is quite small. So we are talking about a couple of hundred cars this year and a couple of thousand cars next year. So, just from a volume perspective, it's not so much of a challenge to get all these parts. But of course, we are concentrating extremely on building our relationship with those suppliers and maintaining them. So, thank you very much.

But the good thing is in our case recall that our volume is it's quite small so we are talking about a couple of them that come.

Carsten Breitfeld: We are talking about a couple of hundred cars this year and a couple of thousand cars next year. From a volume perspective, it's not so much of a challenge to get all these parts. Of course, we are concentrating extremely on building our relationship with those suppliers and maintain them. Recall, relationship with suppliers is not so much a transaction. It's always really a relationship. You have to communicate with them on a day-to-day basis. We have a very good team here, experienced people, former colleagues I brought from BMW, which have great networks worldwide. I feel quite comfortable that we will get all the parts and the right quality we need.

Couple of them that caused this here in a couple of thousands of costs.

Next to you so from a just from a volume perspective, it's not so much of a challenge to get all of these all these pumps, but of course, we are concentrating extremely on building a relationship with social space and maintain them.

Speaker 8: I recall the relationship with suppliers is not so much a transaction, it's always really a relationship. You have to communicate with them on a day-to-day basis. We have a very good team here, experienced people.

Recall relationship with suppliers is not so much a transaction. It's all of it is really a relationship here you have to communicate with them on a day to day basis, that's a very good team experienced people.

Speaker 8: from a colleague I brought from BMW, which have great networks worldwide. And I feel quite comfortable that we will get all the parts in the right quality we need.

From our colleagues.

What from from BMW, which have great networks with white and I feel quite comfortable that we get all the people to get all the parts and the right quality we need.

Trevor Young: Great. Thank you for that.

Thank you for that.

Speaker 1: Your next question comes from Emanuel Rosner with Deutsche Bank. Please proceed with your question.

Operator 3: Your next question comes from Emmanuel Rosner with Deutsche Bank. Please proceed with your question.

Operator: Your next question comes from Emmanuel Rosner with Deutsche Bank. Please proceed with your question.

Your next question comes from Emmanuel Rosner with Deutsche Bank. Please proceed with your question.

Speaker 10: Yes, thank you very much. Just to start with another question on cash and liquidity, if I may, are you able to dimension how much

Emmanuel Rosner: Yes, thank you very much. Just to start with, another question on cash and liquidity. If I may, are you able to dimension how much you're looking to raise and how much you feel that you need to sort of like accomplish the full ramp up and what sort of options you're looking into?

Yes, thank you very much.

Just to start with another question.

Liquidity.

If I may.

Are you able to dimension how much.

Speaker 10: You're looking to raise how much you feel that you need to sort of like accomplish the full ramp up and what sort of options you're looking into.

You are looking to raise and how much you feel that you need to sort of accomplish the full ramp up and what sort of options you are looking into.

Okay.

Speaker 9: Let's plan our spending ramps up quickly as we move towards launch.

Becky Roof: As planned, our spending ramps up quickly as we move towards launch and with the completion of construction and paying for it and receiving parts. As we've already noted, we've always expected that we will need to raise additional cash to build on production and launch the FF 81, the FF 71, and our smart last mile delivery vehicle. This has always been part of our business plan. We don't need all the capital at the same time, so that allows us to look at a range of capital raise options, different amounts, and at different times. Given the market conditions, we've got to be flexible and we've got to be opportunistic. Now we're looking at a full range of options, non-dilutive to dilutive, everything from asset-based financing to converts to equity.

Rebecca Roof: As planned, our spending ramps up quickly as we move towards launch and with the completion of construction and paying for it and receiving parts. As we've already noted, we've always expected that we will need to raise additional cash to build on production and launch the FF 81, the FF 71, and our smart last mile delivery vehicle. This has always been part of our business plan. We don't need all the capital at the same time, so that allows us to look at a range of capital raise options, different amounts, and at different times. Given the market conditions, we've got to be flexible and we've got to be opportunistic. Now we're looking at a full range of options, non-dilutive to dilutive, everything from asset-based financing to converts to equity.

As planned or are spending ramps up quickly as we move towards launch.

Speaker 9: and with the completion of construction and paying for it and receiving parts.

With the completion of construction and paying for it in receiving parts.

Speaker 6: As we've already noted, we've always expected that we will need to raise additional cash to build on production and launch the FF8-1.

As I've already noted we we'd always expected that we will need to raise additional cash to build on production and launch the F. F. Eight one.

Speaker 6: the 7-1, and our Smart Last Mile delivery vehicle. This has always been part of our business plan. But we don't need all the capital at the same time. So that allows us to look at a range of capital raise options, different amounts and at different times. Given the market conditions, we've got to be flexible and we've got to be opportunistic.

The seven one and our smart last mile delivery vehicles. This has always been part of our business plan.

But we don't need all the capital at the same time, so that allows us to look at a range of capital raise options different amounts in different times, given the market conditions, we've got to be flexible and we've got to be opportunistic. So now we're looking at a full range of options non delayed.

Speaker 6: So now we're looking at a full range of options, non-deletive to deletive, everything from asset-based financing to converts to equity.

If she deleted everything from asset based financing to convert to equity.

Speaker 6: We have to look at the cost against the risks in every category and then make the best decision for our shareholders.

Becky Roof: We have to look at the cost against the risks in every category and then make the best decision for our shareholders.

Rebecca Roof: We have to look at the cost against the risks in every category and then make the best decision for our shareholders.

We have to look at the cost against the risks in every category and then make the best decision for our shareholders.

Emmanuel Rosner: Okay. Sorry, just asking this a little bit differently. How do you expect the pace of cash burn to evolve from what was reported right now for Q1? Because, obviously the Q just hit, so I'm still going through it, but looks like maybe free cash flow use of, I don't know, $170 million or so, which would be sort of like a quarter and a half of, you know, cash that you have currently. Is the burn improving from here or is it actually going deeper as you get closer to start of production?

Speaker 10: Okay, so, sorry, just asking this a little bit differently. How do you expect the pace of cash burn to?

Okay. So sorry, just asking this a little bit differently.

How do you expect the pace of cash burn to.

Speaker 10: evolve from what was reported right now for the first quarter. It looks like maybe free cash flow use of $170 million or so, which would be a quarter and a half of the cash that you have currently. Is the burn improving from here or is it actually going deeper as you get closer?

From what was reported right now for the first quarter because.

Obviously, the Q just hit some still still going through it but.

It looks like maybe free cash flow use Oh, I don't know $170 million, or so which would be sort of like a quarter and the half of net cash that you have currently so our ease the burden improving from here or is it actually going.

Deep Reds, you get closer to start up production.

Speaker 6: So as I think I described, we believe we have sufficient cash to reach SOP, but then raising additional funds to fully ramp up to production and go into the FF8 one was always part of our plans, and we are accelerating our pace on fundraising. It was slowed down by the fact that our filings were not current, and we've now corrected that.

Becky Roof: As I think I described, we believe we have sufficient cash to reach SOP, but then raising additional funds to fully ramp up to production and go into the FF 81 was always part of our plans, and we are accelerating our pace on fundraising. It was slowed down by the fact that our filings were not current, and we've now corrected that.

Rebecca Roof: As I think I described, we believe we have sufficient cash to reach SOP, but then raising additional funds to fully ramp up to production and go into the FF 81 was always part of our plans, and we are accelerating our pace on fundraising. It was slowed down by the fact that our filings were not current, and we've now corrected that.

First I think I I had described we believe we have sufficient cash to reach S. O P. But then raising additional funds to fully ramp up to production and go M. C. D. S. S. Eight one was always part of our plans and we are accelerating.

Our pace on fund raising it was it was slowed down by the fact that our filings were not current and we've now corrected that.

Emmanuel Rosner: Okay. I guess, can you maybe talk about your choice of partner for the FF 81? You know, how did you settle on this partner? Why this specific geography, location for manufacturing? I guess, what are the advantages that this brings?

Okay and then.

Yes.

Speaker 10: Maybe talk about your choice of partner for the FFH-1.

Can you may be talk about no choice sofa of partner for the phase one.

Speaker 10: know, how did you settle on this partner? Why this specific geography location for manufacturing? I guess, what are the advantages that this brings?

You know how did you settle in this partner why this specific geography location for manufacturing I guess what are the advantages of this spring.

Speaker 8: Let me summarize first, maybe to better understand our manufacturing strategy.

Carsten Breitfeld: Yeah, let me summarize first, maybe to better understand this, our manufacturing strategy. We call this a hybrid strategy because there are two conflicting targets as the car maker. One is you definitely want to understand and own your manufacturing process. Yeah. This is very important to be able to deliver quality to manufacture, to cost, and then all these things. You have to understand your process. On the other hand, we don't want to invest billions of dollars into production sites right now, yeah. We need this capital to invest it into technology and products. This is why we lease our Hanford plant here in California, operated by our own. We learn about the process here. We own the process. We ramp up to 91.

Yeah, Let me summarize, Chris maybe to better understand to see Oh, our manufacturing strategy. So we call. This.

Speaker 8: So we call this a hybrid strategy, because there are two conflicting targets as the carmaker. One is you definitely want to understand and own your manufacturing process. This is very important.

Our hybrid strategy because.

Let's say there are two conflicting targets of <unk>, but definitely wants to understand and own your manufacturing process, because it's very important to be able to deliver quality to manufacture Boston and all these things congrats on the central process on the other.

Speaker 8: to be able to deliver quality, to manufacture, to cost, and then all these things. So you have to understand your process. On the other hand, we don't want to invest billions of dollars into production sites right now. We need this capital to invest it into technology and products. And this is why we lease our Hanford plant here in California, operated by our own. And we learn about the process here. We own the process. We ramp up the 9-1. And we were looking for a contract manufacturing partner to do the scale production for the FF8 one.

And we don't want to invest billions of dollars into inter protection science right now we need the capital to invest into technology and product and this is why we why we might be.

At least a handful plant here in California operated by our own M. P. Learn about the process here be owns a process, we ramp up to nine one.

Carsten Breitfeld: We were looking for a contract manufacturing partner to do the scale production for the FF 81, because this would be very capital intensive. We talked of course to a couple of potential contract manufacturers, and the one we found in South Korea, Myoung Shin. This deal has two big advantages. Number one is our partner will do the investments. There's no pre-investment needed from our side. Which is very, very asset light from our perspective. South Korea is a great place to export from. The South Koreans, they are quite good friends with most of the economies in the world, and you don't see tariffs with many countries at all, and tariffs with other countries are very low compared to other parts in the world.

We were looking for our contract manufacturing partner to do the scaled production for the <unk> eight one because this is would be very capital intensive.

Speaker 8: because this would be very capital-intensive. So we talked, of course, to a couple of potential contract manufacturers, and the one we found in South Korea, Myung-Chin,

So we talked of close to a couple of potential conflict when in fact, Chris and the one be found in South Korea, I mean chin.

This deal has the bigger two big advantages and number one is our partner will do the investments so visits no pre investment needed.

Speaker 8: So there's no pre-investment needed from our side.

But from our site.

It's it's very very asset light from our perspective, hence.

South Korea is a great place to export from the South Koreans are quite good friends with most of the economies in the world and you don't see tariffs as many countries. It all in and terrorists with other countries are very low compared to other parts in the world. So it's a great place to export from and to partner was bearing all of the upfront investment.

Carsten Breitfeld: It's a great place to export from, and a partner who is bearing all the upfront investments.

Yeah.

Emmanuel Rosner: Understood. Thank you.

Understood. Thank you.

Operator 3: Your next question comes from Michael Ward with Benchmark. Please proceed with your question.

Operator: Your next question comes from Michael Ward with Benchmark. Please proceed with your question.

Your next question comes from Michael Ward with Benchmark. Please proceed with your question.

Michael Ward: Thanks very much. Good afternoon, everyone. Hey, I wonder if you can talk a little bit about what we can track as far as these milestones with your production. You just reached milestone 4, and what would be the next step? Would it be Will there be some sort of validation that you're okay to produce? And then, you know, what's gonna get us to start a production? How many more levels do we have till we see that?

Thanks, very much good afternoon, everyone.

I'm wondering if you can talk a little bit about what we can track as far as these milestones with your production. So you just reached a milestone for <unk> and what would be the next step would be will there be some sort of validation that you're okay to produce.

Speaker 11: And then, you know, what's going to get us to start a production? How many more levels do we have till we see that?

And then whats kind of get us to startup production, how many more levels do we have to we see that.

Yeah.

Carsten Breitfeld: Basically we just announced six different milestones we have to achieve. We just announced the achievement of milestone number five, which is basically start to the implementation of the machinery and electric power as a supply for the different production unit. The way this works in the plant, I don't know if you saw this before. You prepare the plant. You put all the foundations in. You have to put energy supply into it, yeah, and all the logistics around it, which can be challenging. Your equipment is pre-configured at your supplier. For example, our body shop comes from MINO in China.

Speaker 8: So basically, we announced six different milestones we have to achieve. And we just announced the achievement of milestone number five, which is basically start to the implementation of the machinery and electric power.

So it's basically we just we announced six different milestones.

To achieve.

We just announced the achievement of milestone number five which is basically start.

Two of the implementation of the Mcmichen Makena machinery and electric power.

Speaker 8: and as a supply for the different production units. And the way this works in a plant, I don't know if you saw this before, so you prepare the plant from, you put all the foundations in, you have to put energy supply into it, and all the logistics around it can be challenging. And your equipment is pre-configured at your supplier.

So that's the supply for the different production.

The way this works in the plant I don't know if.

So that's the fun so youll prepare the plan from from <unk>.

Put all the foundations and you'll have to put energy supply into it and all the logistics around it with 10 can be challenging and your equipment is pre configured at Joseph a player for.

Speaker 8: For example, our body shop comes from Mino in China. So it was completely installed and tested. Then it is delivered. And then you just put it in place and connect it to energy and can start with your trials. And so this milestone that we started to put the equipment in place and the electric supply, this is the one we just reached. And the next one would then be the start of our pre-series production.

For example, our body shop comes from minnow in China. So it was completely installed anticipate then it is deliberate and then you put just put it in place and connect it to energy and can start to finish up trials and so this this milestone that we've started to put the equipment in place.

Carsten Breitfeld: It was completely installed and tested, and it is delivered, and then you just put it in place and connect it to energy and can start with your trials. This milestone that we started to put the equipment in place and the electric supply, this is the one we just reached. The next one would then be the start of our pre-series production.

Electric supply. This is so let me just read.

The next one but then be start of our P series production.

Michael Ward: Okay. Did I-

Speaker 11: It sounds maybe a little bit theoretical. I invite you and everybody to come to Hanford at any time and see the real progress. It's a real Kaplan now, and it's way easier to see it than to talk about it.

Okay.

Carsten Breitfeld: It sounds maybe all a little bit theoretical. I invite you and everybody to come to Hanford at any time and see the real progress. It's a real car plant now, and it's way easier to see it than to talk about it.

Maybe a little bit theoretical.

And why do you and everybody to come to a handful it at any time and see the real progress. It's it's it's a it's a real complement now and it's way easier to see it then to talk about it.

Michael Ward: Is 91 kind of Job One? Is that what you're thinking of?

And it's nine one is kind of job one is that what youre thinking of.

Speaker 8: Correct. Okay. So Hanford is a low-volume plant. It's invested to 2 GPH maximum capacity at 10,000 units a year.

Carsten Breitfeld: Correct. Mm-hmm.

Correct.

Michael Ward: Okay.

Carsten Breitfeld: Hanford is a low volume plant.

Okay, So and it's a low volume plant.

Michael Ward: Right.

Carsten Breitfeld: It's invested to 2 JPH, maximum capacity 10,000 units a year.

It's invested to two G. P. H maximum capacity 2000, 10000 units a year.

Speaker 11: 10,000 a year, right. Okay. And that's is that is that one shift or is that two shifts? Is that what that is? Or I don't know it at that plant that size. How do you gauge?

Michael Ward: 10,000 a year. Right. Okay. Is that one shift or two shifts? Is that what that is? Or I don't know how a plant that size, how do you gauge it?

10000, a year right. Okay, and that's is that a is that one shift or is that two shifts is that what that is or I don't know how it does.

Plant that size, how do you gauge it.

Speaker 11: It's now planned for a one-shift operation, but of course we can scale this further. Right. Okay, now can you talk a little bit about the people you've put in place to manage this process?

Carsten Breitfeld: It's now planned for a one-shift operation, but of course we can scale this further.

It's now right plan for one shift operations, but of course, we can scale. This person right. Okay. Now can you talk a little bit about.

Michael Ward: Right. Okay. Now can you talk a little bit about the people you've put in place to manage this process, to manage the ramp, start a production, and then eventually the acceleration of production in Hanford?

The people you've put in place to manage this process.

Speaker 11: to manage the ramp start of production and then eventually the acceleration of production.

To manage the ramp started production and then eventually the acceleration of production in Hanford.

Speaker 8: Yeah, it's like you do it in a car production environment. So we have a very experienced VP, Matt Hall, who is leading the plant.

Carsten Breitfeld: Yeah. It's like you do it in a car production environment. We have very experienced VP Matt Tall, who's leading the plant. You let's say start with a relatively low volume, relatively low speed to make sure that the process is in place. You have quality controls on every single vehicle at the beginning. You do the necessary rework if necessary to produce the quality. With every single quality issue you learn, you implement it into your process and it gets better step by step. This is the reason why the ramp-up is relatively slow. Yeah. We are only talking about a couple of hundred cars a year. Once your process is stable, then you can scale it and ramp up.

Got it.

You do it in an account production environment. So we have very experienced.

P Metall, who was leading the plant.

Speaker 8: So you, let's say, start with a relatively low volume, relatively low speed, to make sure that the process is in place, you have quality controls on every single vehicle at the beginning.

So are you let's.

Let's say it starts with a relatively low volume very relatively low speed to make sure that the processes in place the quality controls on every single vehicle, it's a beginning.

Speaker 11: You do the necessary rework, if necessary, to produce the quality, and with every single quality issue you learn, you implement it into your process and it gets better step by step. This is the reason why the ramp-up is relatively slow. We are only talking about a couple of hundred cars a year, and once your process is stable, then you can scale it and ramp up. What management is doing that process in the background?

You do is unnecessary rework as if necessary to produce the quality team members every single quality issue, you'll learn who implemented into a process and its gets better step by step. This is the reason why the ramp up is relatively slow yeah. We're only talking about a couple of hundred constant yeah.

And once your process is stable then you can scale it and ramp up.

Michael Ward: Now, what management is doing that process in the background? Is Mathias Hofmann?

No what what what management is doing that process in the background.

Matthias Hoffman.

Yeah.

Carsten Breitfeld: Yeah. We have a Mathias Hofmann who's responsible for the supply chain quality.

Speaker 8: Yeah, we have Matthias Hoffmann, who is responsible for the supply chain quality. So you need two levels of quality if you want to build quality cars. One is the supply chain, that you get the right parts in the right quality, and the other one is the quality of the build.

Yes, we have.

Mathias Huffman, who.

Responsible for the supply chain quality. So you do need to levels of quality. If you want to build quality cross when is the supply chain that you get the right parts and right quality and the other one is the quality also built to Mathias is responsible for the for the supply chain quality and met Todd was running the plant is responsible for the quality also bill.

Michael Ward: Okay.

Carsten Breitfeld: You need two levels of quality if you want to build quality cars. One is the supply chain, that you get the right parts and right quality, and the other one is the quality of the build. Mathias is responsible for the supply chain quality, and Matt Tall, who's running the plant, is responsible for the quality of the build. Then there's a quality organization in place here which controls and measures the quality against our trials.

Speaker 8: So Matthias is responsible for the supply chain quality, and Matt Thal, who's running the plant, is responsible for the quality of the build. And then there's a quality organization in place here, which controls and measures the quality against our trade. OK.

And then there's a quality organization in place here, which.

Controls and measures the quality against Sartorius, Okay. What is my calls background.

Michael Ward: Okay. What is Matt Tall's background?

Speaker 8: He's a manufacturing guy as well. He was with Rivium before and with GM's, I think, AMG plant.

Carsten Breitfeld: He's a manufacturing guy as well. He was with Rivian before and with GM's, I think, Arlington plant.

He said manufacturing Guy asked why he must Arabian before and with.

With G M I think AMG plant.

Michael Ward: Okay. Extent of background. Thank you. I really appreciate it.

Oh, Okay extensive background. Thank you. Thank you I really appreciate it.

Carsten Breitfeld: Welcome.

Okay.

Operator 3: Ladies and gentlemen, we have reached the end of the question and answer session, and this concludes today's conference. You may disconnect your lines at this time. Thank you all for your participation.

Operator: Ladies and gentlemen, we have reached the end of the question and answer session, and this concludes today's conference. You may disconnect your lines at this time. Thank you all for your participation.

Speaker 1: Ladies and gentlemen, we have reached the end of the question and answer session, and this concludes today's conference. You may disconnect your lines at this time. Thank you all for your participation.

Ladies and gentlemen, we have reached the end of the question and answer session and this concludes today's conference you may disconnect. Your lines at this time. Thank you all for your participation.

Yeah.

Okay.

[music].

Speaker 2: ? ? ? ? ? ? ?

Yeah.

[music].

Yeah.

Speaker 2: ?? ?? ??

[music].

Yeah.

[music].

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