Q2 2023 Faraday Future Intelligent Electric Inc Earnings Call
Speaker 1: Greetings and welcome to Faraday Future Intelligent Electric Incorporated Second Quarter 2023 Earnings Call. At this time, all participants may listen only mode. Aidee's question and answer session will follow the formal presentation.
Speaker 1: If anyone should require operator assistance during the conference, please press star zero on your telephone keypad.
Speaker 2: As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Jonathan Marocco with CFO . Thank you. You may begin. Thank you and welcome everyone to Faraday Futures second quarter 2023 earnings call. We issued a shareholder letter reporting our results and filed our quarterly report on form 10Q for the second quarter 2023 this afternoon, August 21st, 2023. Joining the call today from Faraday Future is our global chief executive officer, Excef Chen, global SVP of product execution, Matthias Eit and myself, Jonathan Marocco, interim chief financial officer. You can find a copy of the Q2 2023 shareholder letter now.
Speaker 2: and a replay of this call later today on the investor relations section of our website at investors.ff.com. Please note that on this call, we will be making forward-looking statements based on current expectations and management assumptions.
Speaker 2: These statements reflect our views only as of August 21, 2023, and should not be relied upon as representative of our views as of any subsequent date.
Speaker 2: Except as required by law, we undertake no obligation to revise, update, or publicly release the results of any revision to these forward-looking statements in light of new information or future events.
Speaker 2: These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from those expressed or implied.
Speaker 2: 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, including the section titdled risk factors in our latest a odtal report on our amended Form 10-K in our quarterly earnings report for the second quarter 2020 -th.ree.
Speaker 2: on Form 10Q. In addition, during today's call, our management team will give our prepared remarks and answers to investors' questions in English.
Speaker 2: A translator will provide simultaneous Chinese translation which can be accessed through FF.com.
Speaker 2: All translations are provided for convenience only.
Speaker 2: In the case of any discrepancy, management statements in English will prevail.
Speaker 2: With that, I will turn the call over to XF Chen, Global CEO of Faraday Future.
Speaker 3: Thank you Jonathan and good day everyone and thank you for joining our conference call.
Speaker 3: to start the call.
Speaker 3: Let me give you a brief update about our progress with our production and the delivery.
Speaker 3: following meetings
Speaker 3: Mathias will provide an overview of our data knowledge, and Johnathan will provide a review of our financials.
Speaker 3: covering topics such as fundraising and then measures with implementing to strengthen holiday future.
Speaker 3: For those who are not, it was a chance to meet Jonathan.
Speaker 3: but also during the Brayton phase 2000 as well Prince's Health struggles.
Speaker 3: and we look forward to leveraging
Speaker 3: Thank you very much.
Speaker 3: I'd like to start today's call by saying that I couldn't
Speaker 3: be broader than the FFT.
Speaker 3: other combined efforts on profile the company to accomplish significant milestones over the second quarter.
Speaker 3: On April 14, 2003.
Speaker 3: Our first FFX912.0 filter aligns with clean optical light on our FFX.
Speaker 3: in the factory in California. This moment reflected the accumulation of years of glory in research under Capitol Hill.
Speaker 3: underscore by the connectivity and the identification of our entire team.
Speaker 3: A few months later, on August 12th, we celebrated the delivery of the first FF912.0 fuel test alive to our first F Jon Gay residue, par prolong, tungsten ul shallHuman.
Speaker 3: In-depth experts developer cooperate
Speaker 3: Along with the start of the study rate of our vehicle,
Speaker 3: We cook it off or develop our co-creation festival at Pogo Beach.
Speaker 3: this past week and launched our developer cooperation officer recruitment project.
Speaker 3: Okay, I want to highlight two of our operation opportunities.
Speaker 4: progress
Speaker 3: FPO. Field case present. Field case present.
Speaker 3: Is an open purple layer inter
Speaker 3: with user product expertise.
Speaker 3: So, being invited to engage deeply in the entire process.
Speaker 3: to have features, products, definitions, design, development, and testing.
Speaker 3: Help identify user experience in APPS.
Speaker 3: offers improvement recommendations
Speaker 3: provide valuable insight for better product use.
Speaker 3: and contributes to the product power upgrade.
Speaker 3: This isn't that.
Speaker 3: product type-endation process is aimed to jointly create products that best embody automated data and technologies.
Speaker 3: And I am still the future Tech Knowledge Officer, those who participate in the development of in-vehicle software, AI algorithms, applications and service through the SDK Tech Knowledge Edge. Open platform.
Speaker 3: The application is released by FFT.
Speaker 3: to drive technology transformations in the automotive industry.
Speaker 3: For more details on our developer co-creation project,
Speaker 3: please check our efex.com website.
Speaker 3: So the launching or operating campaign.
Speaker 3: collaborations with Thanks for watching. you
Speaker 3: help deliver valuable insights in areas like brand matching and user acquisition.
Speaker 3: By inter-training innovation with other ship.
Speaker 3: We are preparing the company and our industry for work.
Speaker 3: As we forge ahead and move from a project-based company to an operationally focused company.
Speaker 3: We are intensifying our efforts to strengthen our operational capabilities.
Speaker 3: in time with this mission.
Speaker 3: We are enrich our team by welcoming students, professionals from the industry.
Speaker 3: into the white presence of Nantucket Road.
Speaker 3: ... just now a job onwit the world topic
Speaker 3: I'm taking that
Speaker 3: several. There are combined expertise.
Speaker 3: and extensive experience underscores our dedication to achieving operational excellence and financialESS
Speaker 3: And lastly, our August 13th will be completed with the business registration for FFO2 OPAI company limited.
Speaker 3: marking a significant step forward in the progress of our China efforts.
Speaker 3: We believe that the Texas O-Calibration will shift.
Speaker 3: the next generation of shared intelligent transportation ecosystems.
Speaker 3: and establish the most influential Internet-based intelligent electric vehicle branch.
Speaker 3: Further, in fact, such a collaboration will support the development of a leading, high-end, internet-based intelligent electric vehicle industry station globally.
Speaker 5: Thank you, Xav.
Speaker 5: With phase two of delivery commencing, the manufacturing team at Hanford is diligently focusing on delivering the highest quality FF91 vehicles to our users.
Speaker 5: We have developed and implemented our custom craftsmanship audit procedure and standards a strategic move that enhances our ability to evaluate the performance and quality of our vehicles effectively.
Speaker 5: I am pleased to report that the car is now in the hands of users and on the road.
Speaker 5: As we look to the future, our manufacturing team continues to optimize the facility, preparing for increased volumes throughout the rest of 2023.
Speaker 5: We are planning to triple our manufacturing team in the coming months with the addition of a second shift, a step that will support our anticipated increase in production volume.
Speaker 5: The commitment to excellence that has characterized our progress so far will remain a guiding principle as we move forward.
Speaker 5: I'd also like to take some time to highlight this revolutionary vehicle, the SF912.0 Futurist Alliance, our innovative flagship model and further elaborate on our state-of-the-art automotive AI capabilities.
Speaker 5: More than just the vehicle, we believe the FS91 Futurist represents a new era in performance and user experience charting the path for the automotive industry.
Speaker 5: This is a 2.0 phase of development at FF. We are heralding the future of the Spire Mobility Industry. The future marked by four distinct trends. All AI, All Hyper, All Ability and most important Co-Creation.
Speaker 5: We believe these trends are not abstract concepts. They are tangible realities in our offerings.
Speaker 5: The All-Ability AI Hypercar SS912.0 Futurist Alliance stands out with superior configurations and performance.
Speaker 5: Equipped with the three motors generating 1050 horsepower and 1977 Nm of torque, it leads the class with a 142 kWh battery pack.
Speaker 5: and an EPA certified range of 381 miles.
Speaker 5: The vehicle showcases the pioneering mode body structure and mode pack structure, together forming the largest in-class side impact crumble zone around the battery design. This design enhances occupant and battery protection without compromising the spaceness of the vehicle.
Speaker 5: of the vehicle. Underpinning the FF912.0 is our FFAI Hyper 6x4 Architecture 2.0. Powered by FFAI, this architecture is designed to permit the car to understand user habits, continually learn, and evolve to provide a user-centric experience.
Speaker 5: The third AI space augments the interior space, ensuring unparalleled comfort and pleasure.
Speaker 5: The integration of FF6 technology platforms with our four technology systems, symbolized by 6x4, lays the groundwork for our commitment to pioneering innovation and excellence in the automotive sphere. Since unveiling our generative AI product stack in early May, we have been diligent in enhancing its functionality.
Speaker 5: The development of a watch-and-chat product prototype exemplifies this, catering to specific multimedia scenarios. It leverages a large language model supplying real-time information on an ultra-wide passenger screen for an engaging experience.
Speaker 5: The integration of different AI models ensure flexibility, intelligence and adaptability to user diverse needs.
Speaker 5: Moreover, we introduced FSAI driving at our launch event.
Speaker 5: The system offers ultimate safety and a suite of features like automatic emergency braking, adaptive cruise control and smart parking. We took the vehicle on the road recently driving down from Silicon Valley to downtown LA on a single charge.
Speaker 5: FF stands at the forefront of automotive AI integration, utilizing advanced models like JET.
Speaker 5: GPT and GPT-4.
Speaker 5: Since launching the FF9 one in 2017, we have continually refined our IAI capabilities, ensuring that our offerings remain at the pinnacle of the industry.
Speaker 5: The FS91 2.0 Futurist Alliance is a significant evolution, symbolizing a fresh perspective from the vehicle we introduced six years ago.
Speaker 5: We believe we are not merely following the industry's path, we are charting its course. Our vision continues to drive innovation, redefine the automotive experience and set new standards that others can use.
Speaker 5: aspire to meet. Now I will turn the call back to Jonathan who will go over the financials.
Speaker 2: Thank you, Matthias.
Speaker 2: I would like to begin by providing a financial overview, followed by a discussion of our funding effort and cost-cutting strategy.
Speaker 2: First, I would like to summarize our financial results for the second quarter of 2023.
Speaker 2: Faraday Future reported an operating loss of $56.0 million for the three months ended June 30, 2023, as compared to an operating loss of $137.5 million for the three months ended June 30, 2022.
Speaker 2: The reduction in the operating loss was primarily due to a decrease in engineering, design, and testing services as the company substantially completed R&D activities related to the FF91 vehicle in 2022 and was focused on capitalizable activities attributable to the start of production, which was achieved on March 29, 2021.
Speaker 2: This was coupled with decreases in personnel, compensation, and professional services as part of the company's cost-cutting efforts.
Speaker 2: Net loss was $124.9 million for the three months ended June 30, 2023 as compared to a net loss of $141.7 million for the three months ended June 30, 2022.
Speaker 2: The change in net loss was primarily due to lowered operating expenses, partially offset by higher, non-cash, mark-to-market measurements and settlements, secured convertible notes recorded in the second quarter of this year.
Speaker 2: Turning to our balance sheet, total assets on June 30, 2023 were $567.5 million compared to $529.3 million on December 31, 2022.
Speaker 2: Total liabilities were $289.8 million versus $328.3 million on December 31, 2022.
Speaker 2: Since inception, the company has incurred cumulative losses from operations and negative cash flows from operating activities, and the company's accumulated deficit was approximately $3.8 billion as of June 30, 2023.
Speaker 2: Net cash used in operating activities for the six months ended June 30, 2023 was $160.7 million compared to $235.1 million for the six months ended June 30, 2022. All expenditures were $25.9 million for the six months ended June 30, 2020.
Speaker 2: Cash balance at June 30, 2023 was $19.4 million, including restricted cash of $1.5 million.
Speaker 2: Now, let me provide you with a funding update.
Speaker 2: During the second quarter, as previously highlighted, we secured a commitment of $100 million in gross financing through unsecured convertible notes contingent on specific terms.
Speaker 2: Notably, FF Global Partners, a consortium of approximately 20 present and past senior executives, pledged $80 million out of this committed amount through an independent investment fund. Our management team's dedication was further exemplified when they funded $22 million of gross commitments. Today, we are prepared to give a closing Q and A to all women. The wave of the equality movement put our nation at risk for coherence by interventions
Speaker 2: ahead of schedule for going certain closing prerequisites to bolster Faraday Future's growth.
Speaker 2: Moreover, on June 26, 2021, the National Science Foundation
Speaker 2: We fast-tracked a sum of $15 million from secured notes and secured $90 million of funding commitment from our existing investors, subject to certain closing conditions.
Speaker 2: As of today, we have $171.3 million of gross committed funding not yet funded.
Speaker 2: Equity line of credit or ELOC of $350 million.
Speaker 2: Both the gross committed funding and access to the EUOC are subject to certain conditions.
Speaker 2: Concurrently, the company is also in financing discussions with potential long-term strategic investors in exploring asset-based debt financing.
Speaker 2: I'd like to take a step back and talk big picture about Faraday Future and our prospects.
Speaker 2: It's been a remarkable nine-year journey to reach where we are today with no shortage of obstacles and we finally delivered a vehicle.
Speaker 2: I have immense gratitude for the hard work of both current and former members of the Q&A
Speaker 2: The delivery of our first vehicle is a huge step in the development of our company and certainly one of the key milestones in building a successful profitable business.
Speaker 2: We appreciate our investors understanding and support during this journey.
Speaker 2: Our focus this year is the rollout of our first vehicle and the continued improvement in the efficiency of our operations.
Speaker 2: In terms of profitability and operational efficiency, we believe there is substantial room to reduce our costs.
Speaker 2: both under per vehicle costs and at a company-wide level.
Speaker 2: As I noted, our accumulated deficit is $3.8 billion.
Speaker 2: I think it's important to understand the perspective that this figure is also representative of the amount of capital that has gone into progressing the business to where it is today.
Speaker 2: It's capital that has gone into our product and our technology, and it has enabled us to deliver our flagship FF91 vehicle.
Speaker 2: It is a notable data point when thinking about the costs to recreate a leading edge business like ours.
Speaker 2: I'm sure there is.
Speaker 2: and will be a lot of attention paid to our vehicle production and vehicle delivery numbers.
Speaker 2: We believe our Hanford facility has an expected production capacity of approximately 10,000 vehicles per year.
Speaker 2: As such, the number of vehicles we produce and deliver this year, while obviously important, does not meaningfully determine the long-term value of our business.
Speaker 2: What drives our long-term value is our ability to achieve product market fit.
Speaker 2: to make sure we have and can create the demand to meet our ability to supply the market.
Speaker 2: We believe our sales and marketing team is now able to realize their strengths and can focus on reaching potential customers.
Speaker 2: At the same time, we will continue to work on improving our per-vehicle production costs.
Speaker 2: and slowly ramp up production this year in conjunction with those cost cuts.
Speaker 2: In this stage of our business,
Speaker 2: We are being very strategic and selective in deciding who we deliver vehicles to.
Speaker 2: We continue to believe that we operate in a unique market segment.
Speaker 2: A hybrid of technology, luxury, and performance, in which we believe we outperform any other automaker.
Speaker 2: Given our dual home market strategy, our ability to access the China market, the largest global automotive market, is unique among ultra-high-end vehicle manufacturers such as Rolls Royce, Ferrari, Bentley, and Maybach.
Speaker 2: I'd encourage analysts and investors to look at the annual vehicle delivery figures for publicly traded, ultra-high-end vehicle manufacturers.
Speaker 2: You'll see that huge production and delivery figures are not requirements to establishing meaningful market capitalizations.
Speaker 2: But what is required for us is improved margin, increased awareness of our vehicles, and the creation of brand strength.
Speaker 2: We are focused on that.
Speaker 2: Lastly, I want to quickly touch on our status of implementing internal controls over financial reporting.
Speaker 2: Over the past year, the company has been working diligently to improve its business and system processes and implement internal controls over financial reporting.
Speaker 2: As we sit today, we believe we have a better system and processes in place than we did a year ago.
Speaker 2: Today, concurrent with this earnings release, we've issued restated financial statements for Q3 2022, full year 2022, and Q1 2023.
Speaker 2: The errors were first identified as a result of the company's implementation of actions to remediate material weaknesses in the company's internal control over financial reporting. The restatement was primarily due to non-cash and non-operating classified items relating to its accounting for the conversion of the notes payable.
Speaker 2: and exercising of its liability classified warrants under its debt arrangements. The company has corrected the identified material and immaterial misstatements in those affected periods.
Speaker 2: The company remains committed to improving its internal controls and upholding the highest standards of financial reporting.
Speaker 2: Finally, we want to emphasize our goal to create a profitable business.
Speaker 2: with operating cash flow breakeven in 2025.
Speaker 2: With this goal in mind, I will now turn the floor back over to XF.
Speaker 3: Thank you, Jannatte. Once more, I'm immensely proud of the unbelievable dedication and the effort displayed by the team to achieve this significant milestone in our general plan.
Speaker 3: as we move forward.
Speaker 3: I'll keep the page reaching page 3 in our
Speaker 3: I extend my gratitude for your time and interest.
Speaker 3: and then you start it.
Speaker 3: to keep you informed about our latest developments in the future.
Speaker 2: Operator, we are ready to take questions.
Speaker 1: Thank you. We will now conduct 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 in the question queue.
Speaker 1: You may press start too if you would like to remove your question from the queue.
Speaker 1: For participants using frequent equipment, it may be necessary to pick up your handset before pressing the star key.
Speaker 1: One moment while we post our first question.
Speaker 1: Our first question comes from Steven Gengaro with CFO . Please proceed.
Speaker 6: Thanks and good evening everybody. Thanks for taking my questions.
Speaker 6: The first for me is, you talked about Hanford a little bit, but can you talk about what types of volumes you expect, maybe in the back half of this year and kind of what a reasonable expectation might be for 2024? The last for me is, you talked about what types of volumes you expect, maybe in the back half of this year and kind of what a reasonable expectation might be for 2024?
Speaker 2: Sure, Stephen, this is Jonathan. I think it's a great question.
Speaker 2: certainly understand the desire for guidance around production and delivery volumes.
Speaker 2: We've just launched a new vehicle, we're a new brand, and we want to be very thoughtful about how we enter this new market. We want to make sure the FF91 is well received. So we're being prudent with our production ramp and the delivery of vehicles to market. We're an ultra high end vehicle manufacturer, so the key for us is to make sure that we
Speaker 2: is not massive volume at this stage but rather strong brand recognition driven by an exceptional product.
Speaker 2: We also want to partner with the right users, give these users an unparalleled luxury experience.
Speaker 2: And we'll do this while working with them to ensure the vehicle meets and exceeds their discerning standards.
Speaker 2: As we ramp up production, we'll continue to host curated events that introduce our vehicle and the experience of driving and riding in our vehicle to our target users.
Speaker 2: So the focus for the remainder of 23 is less so on huge volume and more so on brand building and creating a community of enthusiastic ambassadors to amplify our brand. We believe that this will set the stage for a ramp in volume in 2024.
Speaker 6: Thanks, thanks for the color 2 more for me. Just 1 of the follow up to that. Is is there any guidance or any targets you have given what you're doing on the cost side? As far as what volumes you think you need. To get to.
Speaker 2: cash flow break even or even DA break even? Sure, so we're working through that internally. We have a sense of it internally, but we're not yet ready to disclose that publicly.
Speaker 2: but I understand the question. I think it's a valid question.
Speaker 6: Thanks. And just one of the for me as you, you did mention getting the financials restated numbers filed for the last three quarters. Can you give us a little more color on kind of the internal controls and improvements that have been implemented?
Speaker 2: Sure, yeah, I'll reiterate a bit what I mentioned earlier. The team's been working very hard over the past year to improve and implement internal controls. The system we have in place now and processes we have in place now are certainly better than they were a year ago.
Speaker 2: We've improved internal controls in both the preventative and detective categories.
Speaker 2: As you saw today, we issued restated financials for 3Q22, fiscal year 22, and 1Q23. And in doing so, we corrected all material and immaterial misstatements in those periods that we identified. And bigger picture, medium term, our goal is to remediate.
Speaker 2: A portion or all of the material weaknesses when we release our annual report in early 2024. So just air it up and down through the 45 plus years that we report this annual information
Speaker 6: Great. Thanks for the color.
Speaker 2: Of course, thanks for the question, Stephen.
Speaker 1: Our next question comes from Mike Ward, the Benchmark Company. Please proceed. Please proceed.
Speaker 7: Thanks very much. Good evening, everyone. Jonathan, maybe just to follow up on that, when we're looking at production unit deliveries for 23, when you say some, are we talking 50? Are we talking 100? Do you have any guidance at all you can provide us? You mentioned in the release that you expect to be generating some cash from vehicle sales.
Speaker 2: Sure, yeah, we're still hesitant to put a specific number on that at this point. I think maybe next quarter or certainly in 4Q we'll probably give more detailed guidance around deliveries and production. So then it's safe to assume in 3Q we're talking just a few, maybe 10.
Speaker 7: then maybe we can step it up a little bit as you get to 4.2 and then 24 is another story. Is that the right way to think about it?
Speaker 2: I think that's the right way to think about it. 2024 is really going to be when we see the ramp in production is what we believe internally. And again, like I mentioned a lot, still is on the brand building side and making sure that the users who have purchased the vehicle enjoy the vehicle. And yeah, in this there is going to be cash received from
Speaker 7: from selling these vehicles. Right and along with that I don't know if anyone there can talk about what you're doing on the side of customer sports service how those programs are working. How do you intend to push that forward to enhance your user experience?
Speaker 3: Before I answer your aftermarket questions, I think for the volume, I appreciate everybody has kept a very close eye on what our RAPAP plan and how much volume we plan to deliver this year to the industry.
Speaker 3: and 2024 and when we can break even. So I think all of these questions are under reviewed by the company. As John Larson just mentioned, in this short stage for 2023, our major objective is to think about how to build our brand.
Speaker 3: The more volume numbers already been placed for the long-term parts. And in parallel, we are under discussion what's the approach and what kind of derivative of vehicle will be produced. So later on, we will have some more accuracy numbers with a very strong philosophy behind. I appreciate for that question. And then back to the service. OEM...
Speaker 3: So we have built up after service for the vehicle. For example, with the FF-Concert service, users will never have to bring their FF91 to our service location.
Speaker 3: with a preliminary vehicle pickup or FF Mobile Service and the worry-free support is momentary.
Speaker 3: Utilizing the FF9-1 intelligent vehicle remote, dynoistic and over-the-air software updates will ensure our users' peace of mind through their FF daily.
Speaker 3: They can schedule their service through the FFAPP which will include other functions such as a service alert and direct to the FFAS support team.
Speaker 3: Some of the key assumptions or key service like one is FF roadside assistance. For five years after purchasing FF91, users will have peace of mind that they are covered by FF roadside assistance 24-7 and 365 days a year.
Speaker 3: A user can contact Roadside Assistance Director through the FFAPP or calling the FF Roadside Assistance number.
Speaker 3: The second one is the FF portable charger with dual voltage capability with both level one and level two AC charging capability. The FF portable charger shifts up to 9.6 kV.
Speaker 3: And also we talk about the FF1 home charger. For fully utilized FF91 charging capability, we will offer a branded FF home charger supported up to 19.2 kilowatt. For the FF1 home charger, we will offer a branded FF1 home charger supported up to 19.2 kilowatt.
Speaker 3: Home charger is a smart Wi-Fi connected charger Comfortable with most UAVs Home charger is a smart Wi-Fi connected charger
Speaker 3: can be installed against Intel or auto
Speaker 3: or auto
Speaker 3: And also we simplify the installation process by partnering with a community for charging exploration service. Our eighth and major project,?
Speaker 3: The last one is for the public charging. Users can enjoy the convenience of charging on the go. FF is offering $1,000 FF charging credit with the purchasing of the FF9-9 edition. With up to 188 KW of peak DC power capability, the
Speaker 3: Our F-99 is incompatible with the RASC network of public charging stations throughout the U.S. and the Canada.
Speaker 7: I'll wait for that question. Just one last one for me. You have a couple of charts on the slide deck talking about co-creation. Could you talk a little bit about that because that seems to be unique in the marketplace, the structure and maybe the strategy you guys are employing with it and what you hope to get out of it?
Speaker 3: This developer collaboration is FF innovative brand marketing and user operation methods, which is different from traditional OEM marketing and product improvement methods.
Speaker 3: The corporation engages high quality users earlier in the process and at the same time obtain these users infusing them and their expertise for the product, technologies, brands, and service through their user feedback.
Speaker 3: This helps the company build a very positive image and improve products and technologies among others.
Speaker 3: The first group of car owners have been invited to join the FF developer calculation mission and the third are the FF developer calculation officers.
Speaker 3: With their industry expertise, these users will create value while benefiting from FF operating this alignment.
Speaker 3: for the interest. This kind of alignment for interest, no doubt, embodies FF's core philosophy and the business model of value, cooperation, and the benefits for the co-sharing.li
Speaker 3: So, well it takes some more time to pick up these partnerships. By the way, strongly believe that you will.
Speaker 3: The burden will work for the week and the value proposed regions.
Speaker 7: So these people will be customers slash partners is the way it's set up structurally.
Speaker 3: Yeah, you know, myself, I work for other traditional OEMs in the past 20 years. Normally once we launch a car, we hold a very big launch event.
Speaker 3: spend a lot of money and it's just to a PR purpose and introduce MSRP, the pricing, the service, the technologies of the product and then just push to the market, right? So then it goes into the routine, production and sales service, that kind of group.
Speaker 3: However, once we moved to eBay, you see some of the outstanding strong products in the F5-9-1 alliance. We offered more than 1,050 cost-powers and with very strong IAI integration systems. So there will be a lot of Unixes of this kind of...
Speaker 3: auto luxury products. So we do need to have this kind of co-creation process with our customer and our partners. I cannot say, I don't want to show to them how we drive this car, how we use this car, how we operate this car, and how we...
Speaker 3: fail this car, right? There's a lot of operation and a lot of failing quite different to the normal traditional brand or traditional product and a lot of be honest, a lot of expertise They also have a very strong Infuse infusivism I want to be jumped into this kind of process. I mean
Speaker 3: to drive the car, find the issues, provide their suggestions, and to see the OEM can take their valuable suggestions and do upgrades. So this kind of integration between OEM with our partner users through using every code.
Speaker 3: development vehicle, upgrade vehicle. So actually that's the real value of this kind of co-creation.
Speaker 1: Thank you very much. Thank you. There are no further questions at this time. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a great day.