Q1 2025 Faraday Future Intelligent Electric Inc Earnings Call
If anyone should require operator assistance. Please press star zero on your telephone keypad. As a reminder, this conference is being recorded it is now by a pleasure to introduce Jonathan Chile director of public Relations and communications. Thank you you may begin.
John showing: Welcome everyone to fairly features first quarter 2025 earnings call. This is John showing director of PR and communications that F F.
John showing: Today I'm joined by a few members of our leadership team, including our global co CEO Matteo site, our global President Gerry Wang our CFO Cody Mecca.
Speaker Change: And our founder and global co CEO <unk> <unk>.
Speaker Change: Today, we will be sharing details from our first quarter 2025 results.
Speaker Change: Yes release as well as todays presentation will be available in the Investor Relations section of our website at investors.
Speaker Change: F F Dot com a replay of this call will also be posted there later today.
Speaker Change: Please note that on the call we will be making forward looking statements are based on current expectations and assumptions, which are subject to.
Speaker Change: Risks and uncertainties. These statements reflect our views only as of today should not be relied upon as representative of views.
Speaker Change: 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 Change: These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations for.
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.
Speaker Change: In today's call, we will be covering the following topics the first quarter overview and financial highlights our development progress together with our second quarter and full year outlook. The management team will also address frequently asked questions from our shareholders.
Matteo Site: With that I will now turn the call over to Matteo.
Matteo Site: Thank you John.
Speaker Change: Hi, everyone. This is Mathias global Cosio further future I'm pleased to share our key developments for the first quarter of 2025 through today, which reflect growing operational maturity expanding market reach and strategic execution across.
Matteo Site: Driven mobility roadmap.
Matteo Site: We began the quarter by announcing our plans for the FX Super one which would be our first class AI NPV product. This marks a pivotal moment in our mass market strategy.
Matteo Site: We also officially entered the east coast market.
Matteo Site: With the delivery of our first <unk> 120 in New York, and expanding our regional footprint beyond California.
Matteo Site: To support FX development.
Matteo Site: Kicked off U S. Homologation on drug testing for the FX <unk> and FX six prototype mules to keep us on track towards regulatory and production milestones.
Matteo Site: In alignment with our long term focus on implementing AI technology to all costs building. The next generation AAV, we completed our ticker symbol changed to <unk> AI underscoring our strategic focus on AI integration across our product and operational ecosystem. We also establish.
Matteo Site: Our new subsidiary.
Matteo Site: Hybrid extended range.
Matteo Site: Which will lead the design and development of the world's first AI powered hybrid extended range electric powertrain.
Matteo Site: This is a core enabler of our long term platform strategy.
Matteo Site: Internally, we enhanced our capital and operational leadership with Terry appointed US Global President to drive global execution product delivery and organizational efficiency.
Speaker Change: And just recently, we finally invited white teacher, our founder to come back to the health and co lead the company as co CEO together with me.
Speaker Change: Now turning to vehicle delivery, we continue to expand our client base with two <unk> 91 to zero deliveries, one in California, and one in New York.
Speaker Change: And technology and AI, we have made strong progress across product planning and software announcements.
Speaker Change: Begun technology planning for our hybrid extended range system, which could power. The next generation of products. We have also successfully delivered the first internal development version of our AI powered vehicle operating system built on our AI agent framework, enabling intelligent in cabin.
Speaker Change: Driving experiences.
Speaker Change: <unk> nine one software continues to evolve with diversion 57 update released during the quarter.
Speaker Change: Enhancing user experience stability and performance and capital and Investor Relations. We received 20 million U S. Dollar from a prior financing round and secured an additional 41 million U S dollar and new funding subject to closing conditions. These funds are crucial to <unk>.
Speaker Change: <unk> ramp up.
Speaker Change: R&D at market expansion. We also hosted a successful investor event in New York, where we engaged stakeholders.
Speaker Change: Strategy updates and announced plans to open our New York Metro office to deepen our presence in this key market.
Speaker Change: Part of our global strategy, our Middle East facility in Russia Economic zone.
Speaker Change: She is now ready for occupancy the local team will be taking over shortly bringing our international production capacity another step closer to activation.
Speaker Change: Finally on the operations front, we remain laser focused on executing our FX strategy and enhancing work efficiency.
Speaker Change: We hosted our first open AI, they not only to spotlight.
Speaker Change: Abilities, but also to attract top engineering and data science talent aligned with our long term platform roadmap.
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Unknown Executive: If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded.
We also continued to improve our operational efficiency and compliance through different methods, including AI powered management system.
John Schilling: It is now my pleasure to introduce Jonathan Schilling, Director of Public Relations and Communications. Thank you. You may begin.
Speaker Change: Now, let's welcome Cody Micah, our CFO to talk about the financials.
John Schilling: Welcome everyone to Faraday Future's first quarter 2025 earnings call.
Cody Micah: Thank you Matthias.
John Schilling: This is John Schilling, Director of PR and Communications at FF. Today, I'm joined by a few members of our leadership team, including our global co-CEO, Matthias Aydt, our global president, Jerry Wang, our CFO, Koti Meka. and our founder and global co-CEO, YT Xie.
Cody Micah: Hello, everyone I will walk you through several key metrics that highlight both our operational execution and improving financial position.
Cody Micah: For the quarter, we reported revenue of <unk> $3 million, primarily driven by the delivery of one newly leased.
Cody Micah: Nine one vehicle.
John Schilling: Today we will be sharing details from our first quarter 2025 results. The press release, as well as today's presentation, will be available in the Investor Relations section of our website at investors.ff.com. A replay of this call will also be posted there later today.
Cody Micah: Long side lease revenue from the vehicles are delivered in prior periods. This reflects continued monetization of our flagship product.
Our net loss from operations was $43 8 million in line with the $43 $6 million reported in Q1 2024.
John Schilling: Please note that on the call, we will be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views only as of today, should not be relied upon as representative of views as of any subsequent date, and we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.
Cody Micah: This stability underscores our disciplined approach to cost control.
Cody Micah: Even as we advance our FX strategy.
Cody Micah: Operating cash outflow totaled $23 million, a 38% increase from Q1 2024.
Cody Micah: This change was largely due to variations in net working capital changes between the two quarters.
Cody Micah: Our total operating expenses were $22 8 million.
John Schilling: 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.
Cody Micah: Presenting a modest decrease.
Cody Micah: Point $2 million compared to.
John Schilling: In today's call, we will be covering the following topics, the first quarter overview and financial highlights, our development progress together with our second quarter and full year outlook. The management team will also address frequently asked questions from our shareholders.
Cody Micah: Quarter, one 2024.
Cody Micah: Our financing activities generated $24 6 million in Q1 2025.
Cody Micah: Although slightly below the $25 million raised in Q4 2024. This marks the third consecutive quarter, where financing inflows exceeded operating outflows.
Matthias Aydt: With that, I will now turn the call over to Matthias. Thank you, John. Hi, everyone.
Matthias Aydt: This is Matthias, the Global Co-CEO of Faraday Future. I'm pleased to share our key developments for the first quarter of 2025 through today, which reflect growing operational maturity, expanding market reach, and strategic execution across our AI-driven mobility roadmap. We began the quarter by announcing our plans for the FX Super 1, which would be our first class AI MPV product. This marks a pivotal moment in our mass market strategy. We also officially entered the East Coast market with the delivery of our first FF912.0 in New York, expanding our regional footprint beyond California. To support FX development, we have kicked off U.S.
Cody Micah: A positive and sustained trend that continues to support our operations.
Cody Micah: Our net assets grew 21% compared to the prior quarter and two $139 8 million.
Cody Micah: Our debt to asset ratio improved by approximately 700 basis points to 66%.
Cody Micah: This increase in net assets was primarily driven by a $25 $8 million reduction in outstanding notes payable these developments reflect a meaningful improvement in our capital structure and overall financial stability.
Matthias Aydt: homologation and road testing for the FX-Super-1 and FX-6 prototype mules to keep us on track toward regulatory and production milestones. In alignment with our long-term focus on implementing AI technology to our cars, building the next generation AI EV, we completed our ticker symbol change to SSAI, underscoring our strategic focus on AI integration across our product and operational ecosystem. We also established a new subsidiary, Future AI Hybrid Extended Range, AIHER, which will lead the design and development of the world's first AI-powered hybrid extended range electric powertrain. This is the core enabler of our long-term platform strategy.
Cody Micah: Since the first half of 2024.
Cody Micah: In summary.
Cody Micah: Our performance this quarter demonstrates clear progress on both financial and operational fronts.
Cody Micah: We remain focused on strategic investments in our <unk>.
Cody Micah: <unk> roadmap, while optimizing capital and driving toward long term growth.
Speaker Change: I will now invite Gerry wrong global President of F F to provide some comments.
Speaker Change: Thank you Cody this is Gerry Wang for global President Arthur to future I will now share our recent progress our FX development is progressing and showing early signs of strong market traction. We've already received 1000 <unk> nonbinding Patriot.
Matthias Aydt: Internally, we enhance our capital and operational leadership, with Jerry Wang appointed as global president to drive global execution, product delivery, and organizational efficiency. And just recently, we finally invited Y.T. Cha, our founder, to come back to the helm and co-lead the company as co-CEO together with me. Now turning to vehicle delivery, we continue to expand our client base with two FF912.0 deliveries, one in California and one in New York. in technology and AI, we have made strong progress across product planning and software enhancement. We have begun technology planning for our AI hybrid extended range system, which could power the next generation of FS products.
Speaker Change: Leaders from East Coast Company, and another 300, nonbinding haynesville areas from a west Coast company.
Speaker Change: Or a signal of demand for our FX product. We're currently in the midst of a testing and validation program for the FX platform, including Adas advanced driver assistance system testing. This progress is on ensuring the highest standards in quality of Warner's technology.
Speaker Change: Integration and user experience currently we're attacking on public roads in United States at the management level, we've made fundamental changes to strengthen strategic execution as a founder Waikiki <unk> has been appointed co CEO ECS is false stockholders first approach to market cap.
Matthias Aydt: We have also successfully delivered the first internal development version of our AI-powered vehicle operating system, built on our AI agent framework, enabling intelligent in-cabin and driving experiences. Our FF91 software continues to evolve, with the version 57 update released during the quarter, further enhancing user experience, stability and performance. In capital and investor relations, we received 20 million U.S. dollars from a prior financing round and secured an additional 41 million U.S. dollars in new funding, subject to closing conditions. These funds are crucial to support FX Ramp-Up, AI R&D, and market expansion. We also hosted a successful investor event in New York, where we engaged stakeholders, shared strategy updates, and announced plans to open a New York Metro office to deepen our presence in this key market.
Speaker Change: <unk> Asia and stock price is leadership and product vision, our pivotal as we accelerate into the next stage of growth on the capital markets front, we remain committed to protecting stockholder infer or issued a public statement regarding potential illegal short selling activity and allowing infringement.
Speaker Change: This was an important step to defend the company and its investors against market manipulation and reputation of heart. We have also adopted a zero tolerance policy towards illegal cross selling and the deliberate spread a false or misleading information some misleading content has already been.
Speaker Change: Remove or address we will continue to take appropriate actions to address those issues and ensure transparency reinforcing the importance of accountability and choose in capital markets.
Matthias Aydt: As part of our global strategy, our Middle East facility in Ras Al Khaimah Economic Zone is now ready for occupancy. The local team will be taking over shortly, bringing our international production capacity another step closer to activation. Finally, on the operations front, we remain laser focused on executing our FX strategy and enhancing work efficiency. We hosted our first open AI day, not only to spotlight our AI capabilities, but also to attract top engineering and data science talent aligned with our long term platform role. We also continue to improve our operation efficiency and compliance through different methods, including AI-powered management.
Speaker Change: The manufacturing and supply chain will improve supplier relations and strengthened supply chain stability for wound collaborations investor interaction.
Speaker Change: Also intensify we've increased the frequency of co creation event to promote alternatives and direct stakeholder participation. This includes the FX developer Cocreation program, where participants Castrol <unk> prototype meal and the <unk> AI investor community.
Speaker Change: And FX developer cooperation day waste received powerful endorsement from California political leaders validating our global automotive brake strategy and reaffirm our investment of over $3 billion in California forecasting on the research development and manufacturing.
Koti Meka: Now let's welcome Koti Meka, our CFO, to talk about the finance. Thank you, Matthias. Hello, everyone. I will walk you through several key metrics that highlight both our operational execution and improving financial position. For the quarter, we reported revenue of $0.3 million, primarily driven by the delivery of one newly leased FF91 vehicle, alongside leased revenue from the vehicles delivered in prior periods. This reflects continued monetization of our flagship product. Our net loss from operations was $43.8 million, in line with the $43.6 million reported in Q1 2024. This stability underscores our disciplined approach to cost control, even as we advance our FX strategy.
Speaker Change: Next generation artificial intelligence he's actually vehicles. In addition to our hosted events.
Speaker Change: He said he did in the tools technology and innovation conference in Las Vegas, and drawing a business round table at the White House in Washington D. C strengthening our dialogue with National leaders and innovation partners now that's working on Waikiki jaw founder and co CEO of Saturday.
Speaker Change: Sure.
Speaker Change: Thank you Teri Hello, everyone. This is a white tea I'll now walk you through our outlook.
Speaker Change: The primary focus on Q2 so.
Speaker Change: So Doug it's turned around our seven tier one strategic goals and Payless from S. One two as a center.
Speaker Change: For Epsilon the ecosystem first to start with.
Speaker Change: Planning to host the first part of allowance event.
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Koti Meka: Operating cash outflow totaled $20.3 million, a 38% increase from Q1 2024. This change was largely due to variations in net working capital changes between the two quarters. Our total operating expenses were $22.8 million, representing a modest decrease of $0.2 million compared to Quarter 1, 2024. Our financing activities generated $24.6 million in Q1 2025. Although slightly below the $25 million raised in Q4 2024, this marks the third consecutive quarter where financing inflows exceeded operating outflows, a positive and sustained trend that continues to support our operations. Our net assets grew 21% compared to the prior quarter end to $139.8 million.
So program around the end of June where.
Speaker Change: Where do we will also mark the official compound to user deliveries.
Speaker Change: The paradox allowance, we also fully open our online because you paid for <unk>.
Speaker Change: Our target is.
Speaker Change: A team around that 10000 paid per order.
Speaker Change: Putting undue piece would be per order agreements with non refundable deposit.
Speaker Change: Non binding reservations.
Speaker Change: And this will see per order within a refundable deposit and non binding reservations.
Speaker Change: Placed before and within 48 hours on the lunch event.
Speaker Change: We are on track to have the first <unk> Super one offline.
Speaker Change: The end of plenty of 25, and our ambition is to you.
Speaker Change: Adler's Super one as the number one first of class MTV brand in the U S. There's lungs will mark.
Speaker Change: Phase one year of our first class of MTV in the U S.
Speaker Change: Yes.
Speaker Change: Setting the stage for this Robinson in the Permian business and family of vehicles segment, largely on time and a blue Ocean market.
Koti Meka: Our debt to asset ratio improved by approximately 700 basis points to 66%. This increase in net assets was primarily driven by a $25.8 million reduction in outstanding notes payable. These developments reflect a meaningful improvement in our capital structure and overall financial stability since the first half of 2024.
Speaker Change: The simple one aims to disrupt the Toyota RFID in ISR and Cadillac Escalade.
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Speaker Change: In the EMEA IRA.
Speaker Change: Three key reasons number one and the fourth.
Speaker Change: Just firstly class MTV in the U S market.
Speaker Change: We'll leave that.
Speaker Change: The Super one will deliver in light of all of the products the performance and technology.
Koti Meka: In summary, our performance this quarter demonstrates clear progress on both financial and operational fronts. We remain focused on strategic investments in our core roadmap while optimizing capital and driving toward long-term growth.
Speaker Change: The go far beyond today's midstream business in the family of vehicles number two.
Speaker Change: Superior product the power back to the <unk> com as a much lower price point.
Speaker Change: Then the escalator in the U S and Arafat ESR.
Jerry Wang: I will now invite Jerry Wang, Global President of FF, to provide some comments. Thank you, Koti. This is Jerry Wang, the Global President of Faraday Future.
Speaker Change: It was a dream price to performance ratio.
Speaker Change: He has built the best beer is a class number three in the future the mass market as a part of it the line could benefit from the technologists attack the menu for our 300000 flagship as of May one.
Jerry Wang: I will now share our recent progress. Our FX development is progressing and showing early signs of strong market traction. We've already received 1,000 B2B non-binding paid pre-orders from an East Coast company and another 300 non-binding paid pre-orders from a West Coast company, a clear signal of demand for our FX products. We're currently in the midst of a testing and validation program for the FX platform, including ADAS, Advanced Driver Assistance System, testing. This progress is focused on ensuring the highest standards in quality, performance, technology integration, and user experience. Currently, we're testing on the public roads in the United States.
Speaker Change: Which is a fully compliant with current U S ICT as regulations.
Speaker Change: This is going to help make the ultimate take.
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Speaker Change: SaaS Bowl to every household as in time, we are continuing to scale or be it will be a sales efforts in phase one we're able to understand in the U S as days.
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Jerry Wang: At the management level, we've made fundamental changes to strengthen strategic execution.
Speaker Change: We work on the new PA candidates to join our own co creation ecosystem online direct sales system.
Jerry Wang: As a founder, YTJR has been appointed co-CEO. Its incentive follows stockholders' first approach tied to market capitalization and stock leadership and project vision are pivotal as we accelerate into the next stage of growth. On the capital markets front, we remain committed to protecting stockholder interests.
Speaker Change: And also in light of the bead who'll be partners.
Speaker Change: Such as rental car companies and agencies to.
Speaker Change: To visit Us in San Jose.
Speaker Change: Explorer Coker Asia and win win opportunities.
Jerry Wang: We issued a public statement regarding potential illegal short-selling activity and online infringement. This was an important step to defend the company and its investors against market manipulation and reputational harm. We have also adopted a zero tolerance policy to illegal short-selling and the deliberate spread of false or misleading information. Some misleading content has already been removed or addressed. We will continue to take appropriate actions to address those issues and ensure transparency, reinforcing the importance of accountability and truth in capital markets.
Speaker Change: These promising blue Ocean market.
Speaker Change: As the Coker Asian model, we are deeply empower FX.
Speaker Change: Engaging users.
Speaker Change: So elaborate yes, and the partners across industries and the communities.
Speaker Change: Building a truly.
Speaker Change: Collaborate him when you can sell them now, let's move on Q2, and as three product and technology.
Speaker Change: I'd like to share with you now.
Speaker Change: Where does then rendering of the plan the production burden.
Speaker Change: <unk> FX Super one please.
Speaker Change: Please take a look at the slides.
Jerry Wang: For the manufacturing and supply chain, we improved supplier relations and strengthened supply chain stability for one-on-one collaboration. Investor interaction has also intensified. We've increased the frequency of co-creation events to promote openness and direct stakeholder participation. This includes the FX Developer Co-Creation Program, where participants test drove the FX prototype Mule and the FSAI Investor Community and FX Developer Co-Creation Day, which received powerful endorsements from California political leaders, validating our global automotive bridge strategy, and reaffirmed our investment of over $3 billion in California, focusing on the research, development, and manufacturing of next-generation artificial intelligence electric vehicles.
Speaker Change: Two in Q3.
Speaker Change: Plans to unveil a new potential outside of the mazo does and to potentially disrupt the market dominance of route for <unk>.
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Speaker Change: Hybrid banded.
Speaker Change: Banded range system.
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Speaker Change: And pushing forward with our AI and AI Dragon platform.
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Jerry Wang: In addition to our hosted events, we participated in the Jones Technology and Innovation Conference in Las Vegas and joined a business roundtable at the White House in Washington, D.C., strengthening our dialogue with national leaders and innovation partners.
Speaker Change: We will cover our progress answer about 10 <unk>.
Speaker Change: The industrialization and the delivery.
Speaker Change: Or a handful of factory is now preparing a flexible production ladder for FX the illness with their annual capacity of over 30000 total units.
Yueting Jia: Now, let's welcome Y.T. Jia, founder and co-CEO of Faraday Future. Thank you, Jerry. Hello, everyone. This is YT.
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Yueting Jia: I will now walk you through our outlook with the primary focus on Q2. The drug trade around our 7 Tier 1 strategic goals and pillars, from S1 to S7. For S1 User Ecosystem, first, to start with, we are planning to host the first product launch event for the FX Super 1 around the end of June. which will also mark the official countdown to user delivery. The product launch will also fully open our online B2C paid per order collection. Our target is to achieve around 10,000 paid per orders, including binding B2B per order agreements with non-refundable deposits and non-binding reservations.
Multiple models with our light Swift and empower your model we expect.
Speaker Change: We expect to achieve fully competitive supply chain and manufacturing system.
Speaker Change: Targeting less than 25% of the types of R&D cost of a traditional Oems.
Speaker Change: Allow us to land mass market products.
Speaker Change: It's a dream price to performance ratio and reach our goal of tens of thousands of units sold.
Speaker Change: <unk> two years of mass production subject to securing necessary agreements and funding now turn into ethics are absent in the middle East on the China, Our Q other key markets beyond the U S. We are advancing <unk> in the sales curve high reason in that.
Speaker Change: Middle East a region or lungs event will be held in parallel with the FX. So per one product that's allowance in June.
Yueting Jia: and B2C pre-orders within a refundable deposit and non-binding reservation. placed before and within 48 hours of the launch event. We are on track to have the first FX Super One offline by the end of 2025. And our ambition is to establish Super One as the number one first class AI MPV brand in the US. This launch will mark the official first year of a first class AI MPV in the US. Setting the stage for disruption in the premium business and family vehicle segment, a large untapped blue ocean market. The FX Super One aims to disrupt the Toyota Alfa in Asia and Cadillac escalate in the US.
Speaker Change: Underscoring the regions strategic goal as a start up hole in our global strategy, let's take a look at all of our national strategy and the capital market activities and the asylum.
Speaker Change: We're ready to launch a new round of executive stock purchases set to cry, Italy rollout. After this quarterly report.
Speaker Change: Meanwhile, our inverter the entirety of the after tax amount of my $1 million to $2 million.
Speaker Change: Co CEO appointment of bonus.
Speaker Change: So as our stock open market purchases.
Speaker Change: With at least a one year lockup, we remain firmly committed to avoiding a reverse stock split and two protecting our NASDAQ listing future.
Speaker Change: Future equity offerings will be a carefully considered and focused on maximizing long term value and managing the dilution. Firstly, we continue to refine our capital strategy for raising the funds needed that support of that fab.
Yueting Jia: in the AIEV era. for three key reasons. Number one, as the first first-class AIMPV in the U.S. market. We believe that the SX Supra 1 will deliver a level of product performance and technology that could go far beyond today's mainstream business and family vehicles. Number two, the superior product power is expected to come at a much lower price point. then the Escalade in the U.S. and the Alpha in Asia. This extreme price-to-performance ratio could help it beat the best beyond its class. Number three, in the future, the mass-market FX product line could benefit from the technology stack developed for our 300,000 flagship FF91.
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Speaker Change: Jason how are you handling investor communication by setting up a fish oil and <unk>.
Speaker Change: That table account.
Speaker Change: Stock forums to better engage with our stockholders.
Speaker Change: And promptly correct information.
Yueting Jia: which is fully compliant with current U.S. ICTS regulations. This could help make the ultimate AI tech luxury accessible to every household.
Speaker Change: Leveraging our unique advantages to launch global MAA in mid <unk> target.
Speaker Change: Targeting of higher value cost efficient accurate Ethan.
Speaker Change: AI technology companies and others in the mobility ecosystem.
Yueting Jia: At the same time, we are continuing to scale up our B2B sales efforts. In phase one, we aim to enter seven US states with strong AI EV demand. California, Nevada, Texas, Florida, New York, New Jersey, and Oregon. We welcome new FFPAR candidates to join our co-creation ecosystem online direct sales system. and also invite B2B partners. such as rental car companies and MCN agencies. to visit us in Los Angeles to explore co-creation and win-win opportunities in this promising blue ocean market. FX's co-creation model will deeply empower FX. by engaging users, stockholders, celebrities, and partners across industries and communities.
Speaker Change: Could the salaries.
Speaker Change: Realization of our intrinsic capsule value, we're building a compound efficient of our national sales have been to reduce the risk of the delayed financial reporting.
Speaker Change: The per tag.
Speaker Change: Chris.
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Speaker Change: Resources on core operations to ensure society.
Speaker Change: As part of our strategic goals finally, let's close with our seven operations the system build out.
Speaker Change: We have established a global strategic policy Research Center to drive International policy trends.
Speaker Change: Including around the tariffs.
Speaker Change: And so rather than our engagement with the policymakers.
Speaker Change: Our goal is to secure a support from government agencies at all levels, including incentives such as the tax relief and subsidies.
Yueting Jia: We are building a truly collaborative ecosystem together.
Speaker Change: And sure with they are hand off.
Yueting Jia: Now let's move on to S2 and S3, product and technology.
Speaker Change: Regulatory tenders worldwide looking ahead I'm fully committed to delivering that keep you as tied to the stockholders. The first equity incentive as soon as possible.
Yueting Jia: First, I'd like to share with you now the real design rendering of the planned production version of the FX Super 1. Please take a look at the slide. 2.
Speaker Change: We aim to reward our stockholders with a meaningful long term returns.
Yueting Jia: In Q3, FX plans to unveil a new potential FX model designed to potentially disrupt the market dominance of REV4 in the AIEV era. bringing us one step closer to our vision. And AIEV for everyone.
Speaker Change: Thank you.
Speaker Change: Thank you <unk> and thank you to everyone, who presented today as we wrap up I'd like to briefly highlight the materials included in the appendix in the appendix Youll find our unaudited balance sheets and financial statements as of and for the three months ended March 31, 2025, providing addition.
Yueting Jia: Third, we are going all in on AI, accelerating the design and development of our super AI hybrid extended range system, AIHerb. and pushing forward with our AI carbon and AI driving platform. The AIHER company has already submitted three core technology patent applications.
Ill detail on our financial position.
Speaker Change: These materials offer helpful context to support everything we've shared today with that we'd now like to open the floor for Q&A.
Speaker Change: Hello. This is John filling again now I would like to begin our question and answer session.
Speaker Change: I will read off some selected questions from E mail sent to us and Matteo side will give his answers.
Speaker Change: First question.
Speaker Change: We will all FX vehicle models have clear published pricing.
Yueting Jia: From there, let's look at S4, where we will cover progress on server chain, industrialization, and delivery. Our Hanford factory is now preparing a flexible production line for FX units with an annual capacity of over 30,000 total units. including FF. The facility would support mixed line manufacturing or assembly for multiple models. With our light, swift, and empowering model, we expect to achieve a fully competitive supply chain and manufacturing system.
Speaker Change: And if not why.
Speaker Change: Future is committed to provide clear and competitive pricing across our vehicle lineup.
Speaker Change: We are actively working on the first FX product rollout to live by the end of 2025, we will publish the detailed pricing when the timing gets closer.
Speaker Change: With industry standard practice.
Speaker Change: Please note that any deviations from published estimate pricing would be driven by our market specific factors. For example covers local incentives dynamic supply chain conditions affecting material cost and strategic adjustments based on competitive positioning.
Yueting Jia: targeting less than 25% of the typical R&D cost of traditional OEMs. This would allow us to launch mass market hit products with extreme price-to-performance ratio and reach our goal of tens of thousands of units sold within two years of mass production subject to securing necessary agreements and funding.
We will ensure that the stakeholders received timely updates as pricing is finalized.
Speaker Change: The next question given Fff's historic high end positioning how will the company reconcile brand identity with FX as mass market target.
Yeah.
Speaker Change: The <unk> established our technological leadership and the ultra premium segment, the ultimate take luxury.
Yueting Jia: Now turning to S6, our asset in the advancing FX production and sales preparation in the Middle East. A regional launch event will be held in parallel with the FX Super One product launch in June. Underscoring the region's strategic role as the third pole in our global strategy.
Speaker Change: The key takeaway from its launch and co creation experience, including pricing strategy and customer demand are being applied to the FX models through technology transfer and future iterations incorporating high end features designed for the Air Force one.
Speaker Change: For example, connectivity Kevin into accessible configurations.
Speaker Change: Streamline offerings Global bridge strategy for mature supply chain to lower the production cost.
Yueting Jia: Let's take a look at our financial strategy and capital market activities under S5. We are ready to launch a new round of Executive Stock Purchases, set to gradually roll out after this quarterly report. Meanwhile, I invite the entirety of the after-tax amount of my $1.2 million Co-CEO Appointment Bonus into FFstock Open Market Purchase. With at least a one-year lock-up, we remain firmly committed to avoiding a reverse stock split and to protecting our NASDAQ list. Future equity offerings will be carefully considered and focused on maximizing long-term value and managing stockholder dilution. Firstly, we continue to refine our CAP strategy for raising the funds needed to support the FF and FX product roadmaps.
Speaker Change: Brand architecture positioning <unk> as a high value entry point.
Speaker Change: The <unk> remains our flagship innovation showcase.
Speaker Change: The next question regarding the <unk> hundred plus FX Super one b to B orders are these reflected in Q1 or Q2 guidance what types of clients placed these orders.
Speaker Change: These preorders replace but a fleet provider Skyhawk auto LLC in Orange County, and the original dealership in New York, Tracy Auto, which is considering building a fleet service revenue recognition will follow delivery timelines and contractual terms.
Speaker Change: The preorder bio JCR also happened in late April and the order by a sky horse happened in early May.
Speaker Change: These preorders are nonbinding irrespective deposits of $100000 $30000 nonrefundable and can be used forward to purchase.
Yueting Jia: Secondly, our counterattack against illegal short-selling is already shown in results. We issued notices to several suspected parties and several misleading videos have since been removed or addressed. We will not hesitate to take further action if necessary.
Speaker Change: Fix vehicles.
Speaker Change: Tracy.
Tracy: Regional used car dealership in New York with many vehicle shopping available Tracy audit <unk> differentiates itself by understanding the local car buying community.
Tracy: And satisfying its needs. It is considering building a fleet service, which could utilize FX vehicles founded in 2019 Sky host Audra LLC.
Yueting Jia: In addition, we are enhancing investor communication by setting up official and executive accounts on made-in-stock forums. to better engage with stockholders and promptly collect misinformation. We are leveraging our unique advantage to launch a global MAA initiative. targeting high-value, cost-efficient acquisitions. of AI technology companies and others in the mobility ecosystem. which could accelerate the realization of our intrinsic capital value. We are building a compliant, efficient financial system to reduce the risk of delayed financial reporting and protect stockholders' interests. At the same time, we are enforcing strict cost controls and focusing resources on core operations to ensure steady progress toward our strategic goals.
Tracy: Larry.
Tracy: Mobility solutions provider based in southern California, specializing in premium car rental services and custom travel experiences for international travelers.
Tracy: <unk> has a fleet of over 100 vehicles and is recognized for its personalized service and convenience.
Speaker Change: The next question will management resume open market insider stock purchases immediately after the post earnings blackout period is there a defined timeline or scale for such transactions.
Speaker Change: <unk> leadership remains committed to align with stakeholder interest any open market purchases post blackout, we will comply with SEC regulations and corporate policies.
Speaker Change: Our management team, who have plans to purchase stock from the open market and will disclose tenby five.
Speaker Change: <unk> trading plans or transactions.
Speaker Change: As required by SEC regulations.
Yueting Jia: Finally, let's close with S7 operations system buildup. We have established a global strategic policy research center to track international policy trends, including around tariffs, and strengthen our engagement with the policy Our goal is to secure support from government agencies at all levels, including incentives such as tax relief and subsidies. to ensure we stay ahead of. regulatory changes worldwide. Looking ahead, I am fully committed to delivering the KPIS tied to the stockholder's first equity incentive as soon as possible. We aim to reward stockholders with meaningful, long-term returns.
Speaker Change: And then last question.
Speaker Change: FX products appear to rely significantly on components sourced from China, owing to the maturity and cost advantages of its supply chain what impact will the recent tariff increases on Chinese goods have on FX is strategy and how will the company respond.
Speaker Change: The recent tariff increase has had a broad impact on the U S automotive industry, China supply chain known for its cost effectiveness and high quality to cost ratio has long supported U S. Automotive operations in response to the tariff hikes FX is taking a dual approach besides purchasing from Chinese.
Speaker Change: Pliers first FX will look to leverage its existing domestic supply chain, which already accounts for up to 50% of the Fas 91 component second FX is actively collaborating with suppliers to localize more production in the United States. Furthermore, FX is working closely with both federal and state governments to seek some.
John Schilling: Thank you. Thank you, YT. And thank you to everyone who presented today.
Speaker Change: Port in mitigating the impact of tariffs.
Speaker Change: As a brand focused on producing high volume mainstream vehicles FX efforts could contribute significantly to U S job creation and tax revenue.
John Schilling: As we wrap up, I'd like to briefly highlight the materials included in the appendix. In the appendix, you'll find our unaudited balance sheets and financial statements as of and for the three months ended March 31, 2025, providing additional detail on our financial position. These materials offer helpful context to support everything we've shared today.
Speaker Change: All these actions could provide a competitive advantage for FX.
Speaker Change: Thank you for your time and thank you <unk> for your answers. This concludes our investor Q&A session. We appreciate all the questions submitted and apologize if we couldn't get to all of them today, we remain committed to maintaining an open communication with our investors.
John Schilling: With that, we'd now like to open the floor for Q&A.
John Schilling: Hello, this is John Schilling again. Now I would like to begin our question and answer session. I will read off some selected questions from emails sent to us.
Speaker Change: That concludes today's conference call. Thank you for your participation.
Matthias Aydt: And Matthias Aydt will give his answers.
Speaker Change: Thank you. This concludes today's conference you may disconnect your lines at this time and thank you for your participation.
Matthias Aydt: First question. Will all FX vehicle models have clear published pricing? And if not, why? Faraday Future is committed to provide clear and competitive pricing across our vehicle line-up. While we are actively working on the first FX product to roll off the line by end of 2025, we will publish the detailed pricing when the timing gets closer, consistent with industry standard practice. Please note that any deviations from published estimate pricing would be driven by market-specific factors, for example tariffs, local incentives, dynamic supply chain conditions, affecting material costs, and strategic adjustments based on competitive positioning. We will ensure that stakeholders receive timely updates as pricing is finalized.
Matthias Aydt: The next question, given FF's historic high end positioning, how will the company reconcile brand identity with FX's mass market target? The FF91 established our technological leadership in the ultra-premium segment, the ultimate tech luxury. The key takeaways from its launch and co-creation experience, including pricing strategy and customer demand, are being applied to the FX models through technology transfer, in future iterations incorporating high-end features designed for the FF91, for example connectivity, AI cabin, into accessible configurations.
Matthias Aydt: Streamlined offerings, global bridge strategy for mature supply chain to lower the production cost, brand architecture positioning the FX as a high-value entry point, while the FF91 remains our flagship innovation showcase.
Matthias Aydt: The next question, regarding the 1300 plus FX Super 1 B2B orders, are these reflected in Q1 or Q2 guidance? What types of clients place these orders? These pre-orders were placed by a fleet provider, Skyhorse Auto LLC in Orange County and a regional dealership in New York, JC Auto, which is considering building a fleet service. Revenue recognition will follow delivery timelines and contractual terms. The pre-order by JC Auto happened in late April and the order by Skyhorse happened in While these pre-orders are non-binding, their respective deposits of $100,000 and $30,000 are non-refundable and can be used forward to purchase the FX vehicles.
Matthias Aydt: JC Auto is a regional used car dealership in New York with many vehicle shopping options available. JC Auto differentiates itself by understanding the local car buying community and satisfying its needs. It is considering building a fleet service which could utilize FX vehicles. Founded in 2019, Skyhorse Auto LLC is a mobility solution provider based in Southern California specializing in premium car rental services and custom travel experiences for international travelers.
Matthias Aydt: Skyhaus has a fleet of over 100 vehicles and is recognized for its personalized service and convenience.
Matthias Aydt: The next question, will management resume open market insider stock purchases immediately after the post earnings blackout period? Is there a defined timeline or scale for such transactions? FF leadership remains committed to align with stakeholder interest. Any open market purchase post blackout will comply with SEC regulations and corporate policies.
Matthias Aydt: Our management team do have plans to purchase stock from the open market and will disclose 10 B5-1 trading plans or transactions as required by SEC regulations.
Matthias Aydt: And the last question, FX products appear to rely significantly on components sourced from China, owing to the maturity and cost advantages of its supply chain. What impact will the recent tariff increases on Chinese goods have on FX's strategy, and how will the company respond? The recent tariff increase has had a broad impact on the U.S. automotive industry. China's supply chain, known for its cost-effectiveness and high quality-to-cost ratio, has long supported U.S. automotive operations. In response to the tariff hikes, FX is taking a dual approach. Besides purchasing from Chinese suppliers, first, FX will look to leverage its existing domestic supply chain, which already accounts for up to 50% of the FF91's components.
Matthias Aydt: Second, FX is actively collaborating with suppliers to localize more production in the United States. Furthermore, FX is working closely with both federal and state governments to seek support in mitigating the impact of tariffs. As a brand focused on producing high-volume mainstream vehicles, FX efforts could contribute significantly to U.S. job creation and tax revenue. All these actions could provide a competitive advantage for FX.
Unknown Executive: Thank you for your time.
John Schilling: And thank you, Matthias, for your answers.
John Schilling: This concludes our investor Q&A session. We appreciate all the questions submitted and apologize if we couldn't get to all of them today. We remain committed to maintaining open communication with our investors.
Unknown Executive: That concludes today's conference call. Thank you for your participation. Thank you.
Unknown Executive: This concludes today's conference. You may disconnect your lines at this time and thank you for your participation.