Q2 2025 Faraday Future Intelligent Electric Inc Earnings Call
Keypad as a reminder, this conference is being recorded its now my pleasure to turn the call over to John showing director of PR and Communications. Please go ahead Sir.
Welcome everyone to parity future second quarter 2025 earnings call.
This is John showing director of PR and communications at F. F. Today I'm joined by a few members of our leadership team, including our global co CEO Matteo site Global President Gerry Wang and our CFO Cody Mecca today, we will be sharing details from our second quarter 2020.
<unk> results the press release as well as todays presentation will be available in the Investor Relations section of our website at investors Dot F. F. Dot com a replay of this call will also be posted there later today. Please note that on the call we will be making forward looking statements based on current expectations and assumptions.
Which are subject to risks and uncertainties. These statements reflect our views only as of today should not be relied upon as representative of views as of any subsequent date and we undertake no obligation to revise or publicly release the results of any revision to these forward looking statements in light of new information or future events.
These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations.
For further discussion of the material risks and other important factors that could affect our financial results. Please refer to our filings with the SEC.
In today's call, we will be covering the following topics the second quarter overview and financial highlights our development progress together with our third quarter and full year outlook.
The management team will also address questions from our shareholders submitted electronically in advance of this call with that I will now turn over the call to <unk>.
Thank you John Hi, everyone. This is Mathias global Cushy, you assure the future.
I am pleased to share our key developments for the second quarter of 2025 through today structured around a 70 <unk> strategic goals and pillars from X, one seven highlighting meaningful progress and operational improvements in our business and financial fundamentals and continued strategic.
Execution across our AI driven mobility roadmap.
The ethics Super Bowl launch campaign.
Demonstrated pendulum commercial impact underscoring the effectiveness of former influence in that marketing strategy. Thank.
In Q2, we received over 4000 excellent.
One nonbinding nonrefundable preorders from both B to B and B to C. Charles.
By July 31 2000.
25, we received total onetime nonrefundable preorders exceeding 10000 units.
The campaign's reach was amplified through coordinated pitches, all content and endorsement from high profile co creation participants.
<unk> and <unk>.
Broad social media and visibility and excellent customer engagement across both institutional and consumer segments.
FX continues to build strong momentum with its innovative.
<unk> B to C sales model, we have confidence that really stood out.
Oh preorder pipeline.
I saw FX b to B strategy.
As covered multiple key partners.
And third our innovative b to B to C. Co creation model will further strengthen our pre owned pipeline.
On July 17, 2025, we hosted the global initial launch of the ethics Hooper, one MPV in Los Angeles.
Unveiled two groundbreaking global first product yes.
Yes, its super what AI EV MPV MTF.
The one he AI based system.
Syed.
I bought it.
Agent six by far protect your lunch.
The launch event was live streamed to a global audience and attended by hundreds of guests. It was a tremendous success generating a sensational.
<unk> in both the United States, and China, and powerfully promoting the FX trend <unk> Super one product one most significant achievement of our delivery in the second quarter and instead, Mariah Carey award winning bestselling female artist of all time and global top music mentioned features.
Prominently VSS 912 points in the future as to alliance in her new mood music video type dangerous alongside yes S. Zero. One this reflects a new phase of global cultural co creation for F S attracting top tier celebrities and reinforcing.
Fight MTT is a true ultimate AI tech luxury right.
Moving to S to an S three product technology.
This quarter, we have officially released software version 2.00 thought faithful S. S. Nine one delivered via Otas to smooth and improve software stability.
End user experience and features the latest AI 2.0. Additionally.
Appropriate Terry next generation voice assistant and ecosystem service platform.
By large language models 11 and generated a high G I.
We're set to launch while it may not.
OTI update.
Our technological advancement is a key driver for our long term platform strategy.
Regarding regulatory compliance D F N B S.
Motor vehicle safety standards validation and pre verification testing for FX.
That's been in progress. Additionally.
Additionally.
We have officially submitted a patent application for our Super one E AI face product shifting to ask for our progress on supply chain and instrumentation and delivery.
And the plan is completed production and delivery of TSS nine one B 20 model and continues to produce subsequent vehicles.
We also proactively prepared to produce the ethics one.
As of today, we have completed initial preparation for production, including layoffs plannings equipment procurement and installation process documentation personal planning.
Training and.
And the development of quality and logistics centers and fix up a woman has officially entered the parts procurement and production preparation for this and I'll hand for factory.
Moving into trial production internally, we have kicked off the final countdown targeting the first vehicle to roll off the line.
Year end.
Regarding F five our financial strategy and capital markets activity very global President will provide details shortly.
Our efforts in the Middle East and China, and six made US progress this quarter in our key markets beyond the U S. As part of our sort of post strategy.
Within our broader global expansion roadmap, we achieved a key milestone in the middle East during the second quarter, we formally signed lease and received the keys.
A new facility in Russia.
Economic zone.
With the hand over complete.
Preparation is now underway and our local team is preparing to a few operational responsibilities.
Rakesh facility is expected to support future original vehicle customization and potential SKT semi knockdown or seek a complete nektar.
Assembly operations.
Try to chase that enable cost effective local assembly accessibility. This progress further advances our presence across the middle East and North Africa region, and reinforces our duo plus third Poland operating model finally, let's look at a seven on the operations front, we were pleased to welcome back.
Our founder buy teacher, who rejoined the company as a co CEO Bill.
Alongside me this past quarter since he joined the company, we have achieved a major leap in both operational and capital fundamentals.
Market confidence has rebounded significantly and the company's market capitalization has increased nearly 300%.
Our operations team continued to advance the corporate comprehensive compliance roadmap, ensuring full compliance across all areas from company level governance to facility operations and product standards.
On the system side, we implemented the P. P T I a framework across the company.
Fundamental framework has achieved significant results and cost reduction efficiency improvement.
And streamlined operations.
We continue to strengthen our government relationships.
Received strong endorsements from California, political leaders and positive comments from members of Congress.
Washington D C for the British synergy we participated in several high profile events this quarter to showcase all of vehicles and highlighted our global engagement, including a business wrong table at the White House in July we hosted a successful reception at the Capitol Hill Club, where we showcased <unk> Super one and <unk> 91.
The event included private meetings with over a dozen U S lawmakers focused on terrorists technology and American manufacturing.
We were honored by the strong turnout and interest and FX role in advancing domestic EV production.
In addition, our global print strategy was backed by a Donald Trump Junior who expressed support for our commitment to guest manufacturing recognizing as its role in advancing innovation.
Getting jobs and supporting America's economic comeback on August 16 at Pebble Beach F F unveiled its E AI.
And crypto dual flywheel and.
Echo strategy and officially launched the <unk> 10 Treasury plan.
First see time pressure product based on the top and crypto asset basket index by a U S listed company.
Along with the release of the Seaton Index.
Let's see 10, Treasury will accumulate and cabana a portfolio of the world's top 10 crypto assets.
With the goal of becoming the top treasury for the seat in basket.
Thanks, one targets purchase totaling.
Boyfriend that volume, two 1 billion subject to securing necessary funding.
With an initial 30 million purchase.
I building, an independently operating mutually empowering them to place that redo lender it.
ROE system, we aim to accelerate the execution of our E crypto.
Did she and maximize value for stockholders.
Now, let's welcome Cody Mecca, our CFO to walk through the financial results for the quarter.
Thank you Maria.
Hello, everyone I'll walk you through several key metrics that highlight.
Our operational execution and improving financial position in Q2 2025.
For the quarter, our net loss from operations was $48 1 million compared to $50 6 million in the same period in 2024.
Including depreciation amortization and stock based compensation.
Adjusted operating loss stood at approximately $27 4 million made up of $7 3 million in cost of revenue $4 8 million in R&D $1 9 million in sales and marketing and $13 4 million.
In G&A.
The monthly operating loss is approximately $9 million during this quarter.
These numbers reflect our disciplined cost management, even as we continue to invest in FX related engineering talent expansion and strategic but ramp up initiatives.
For the six months ended June 32025, operating cash outflow totaled $43 $6 million at 50% increase from $29 1 million or the same period in 2024.
This increase was primarily driven by timing of the payments and the operational ramp up of the FX platform.
The increase in operating cash usage reflects our ongoing investment in product development strategic execution and cost discipline as we position the company for growth.
Our financing activities generated $55.1 million in the net cash inflows during the six months ended June 30th 2025.
106% increase from $26 7 million in the same period of the prior year.
As of August 12, subsequent to Q2s and we.
We received an additional $45 7 million in financing.
Our financing efforts have meaningfully bolstered our liquidity with quarter end cash position, reaching an 18 month high.
This improvement reflects our ability to secure capital despite a constrained macroeconomic environment.
While total liabilities grew by approximately $29 4 million over the six month period.
It wasn't due to mark to market adjustment, rather than new financing highlighting the balance sheet sensitivity to equity linked valuation changes under fair value accounting in summary, our Q2 performance reflects meaningful progress across both.
Capital liquidity and operational front, we remain focused on executing strategic investments aligned with our core roadmap, while optimizing capital deployment and driving toward long term sustainable growth.
I will now invite Gerry Wang Global President of F F to provide some comments.
Thank you Cody.
This is Gerry Wang.
Global President Faraday future.
I will now share our progress with capital financing in the second quarter.
In Q2 F. S. AI Wassa officially added to the Russell 3000 index.
A key milestone that enhances our visibility and credibility among institutional investors analysts and the broader market externally.
Top tier international farm managers, including Vanguard and Blackrock continued to increase their holdings in the SFA.
Hi.
Vanguard currently holds 512 4 million shares.
And has increased by 500% comparison Q4, 'twenty 'twenty four.
Blackrock has increased its holdings, yeah for AI for four consecutive quarters.
Boosting its position nearly sevenfold from the previous quarter.
As of June 30, 875, Black rock reported that it hold approximately five points three 9 million shares.
Up from just 780000.
Capital markets are recognizing and gaining confidence.
Yes.
Antique value our long term growth potential.
Internally, we launched our <unk> five one executive stock purchase plans.
Which reflect exactly his personal commitment to the company's future and aimed to align their interests with those of the stockholders.
Our father and co CEO why teacher pillows.
Pillows ball, President Gerry well myself.
FX seal maxmara.
<unk> CFO <unk> <unk>.
And several other executives have been officially approved and process for these <unk> five purchase plans.
On the capital markets front.
We actively participated in several investor conferences forums and non deal road shows to the strengths of our engagement with our broader capital markets.
I had the honor of delivering remarks at couple banks conference.
And I just presented at J P. Morgan in 'twenty to 'twenty five although a conference in New York last week stakeholder engagement remain a key forecast in the second quarter.
We hosted our first annual stockholder Earth day.
Where are we provided in depth F X product updates and deeper alignment with our retail investor community.
We're strategically collaborated whereas habit trade a global maritime market broader age and digital asset infrastructure platform marquee and Faraday futures first step into the web three financial ecosystem will have also engaged a leading financial advisor will help advance global AI and AI.
V M&A strategy. Additionally, we recently announced a 105 million in financing in July so far on our aggressive growth strategy.
These funds will significantly strengthen the company's ability to launch FX you for one scale up the production readiness as well as advance our position to be a leader in the <unk> market.
Now.
Well gone back Mathias to discuss the outlook. Thank you Gerry.
I'll now walk you through our key updates with a primary focus on Q3 also structured across the S. One to seven framework.
One first of all we continue to make strong progress in building our user ecosystem.
On the first nine one side, we expect more unite.
Hello petition public she goes to giant nine when overdose and co creation office participation not only validates our brand, but also helps amplify our Cocreation division through.
For instance, innovation and community the community building.
On the FX side.
Momentum is accelerating.
<unk> and <unk> sales channels has now expanded into the eight U S States and we have officially launched the FX Dream partner program and Whiting, leading players across various industries to China's incorporating the next generation of mobility.
We are also developing a comprehensive user engagement ecosystem that combines product platforms.
Two deep customer interaction in the meantime, our FX service pod program continues to grow as we expand partnerships with major service and after market provide us to establish a strong nationwide after sale support network in the near future. We are ramping up physical presence is the ability.
So.
A series of high impact offline activities.
FX one.
Participation in the early order conference now shifting to <unk>.
As two and three without product technology.
We are doubling down on our AI product strategy.
Our focus this year is building a robust internal R&D capability, especially in software and AI.
We are expanding the transfer of core technologies from our $300000 flagship efforts 91 into the FX product line.
In the second half of the year voice into X system built on our large language models will be deployed across ethics.
And other models these models.
Quintin will connect seamless.
With the full SaaS ecosystem.
Intelligent services, delivering a deeply interactive user ecosystem.
From there lets look at U S.
Sure.
We will cover progress on supply chain industrialization and delivery.
We have launched the pilot production phase of the FX Super one and equipment installation and commissioning are expected to be completed within the year to enable full vehicle manufacturing capability.
In September 2024, DFS and FX dual brand strategy was first launched.
In 2025, we expect to complete the FX year and offline market.
Shifting to slide yes.
We are continuously optimizing our capital and financing structure, including bringing in top tier investment banks.
And large institutional investors as always we continue to oppose to shareholders was first philosophy by putting all of our efforts towards building trusts with investors and fully regain their confidence.
Turning to our six our efforts in the middle Eastern China.
The middle East market has made positive progress in preparation, including financing research and development and vehicle deliveries is expected that the preparatory work related to the delivery for the middle East will be completed within Q3 strong support from FX partners. The smooth launch of the <unk>.
Sectary construction have greatly accelerated our ability to commence vehicle deliveries.
We anticipate the first Super one will really all.
Jackson loan by the end of the year.
Finally, let's close with us out of the system development and strategic growth.
Yes.
We will continue to advance it.
I E. The dual brand strategy, our first brand.
We will remain focused on the outlook by segment maintained excess 91 deliveries.
Celebrities.
And staff and complete the model change and upgrades to FMC nine two.
Our second brand FX leverage Super one.
We opened a blue ocean MTV market in the U S. While rapidly initiating deliveries of seven additional modeled.
We are continuing to improve operational efficiency.
Resource optimization cost control.
That'd be nice that confusion and tracking our strategic planning systems have undergoing.
Several rounds of iterative refinement and we are beginning to see tangible results in.
In addition, right.
Integrated.
<unk> tools.
Across our operations.
The ongoing improvement of our general account controls framework is helping us increase the efficiency of quarterly and annual reporting.
I believe that's propelled by the E and crypto.
Crypto dual flywheel.
Bridge Alco strategy.
Continue to optimize operations in line with our corporate goal.
Colder first.
Thank you.
Let's turn it back to John for Q&A.
Thank you Matteo 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, you'll find our unaudited balance sheet and financial statements as of and for the three months ended June 32025, providing additional detail on our financial position. These <unk>.
<unk> offer helpful context to support everything that we've shared today with that we'd now like to open up the floor for some Q&A.
Here are some select a questions from E Mail center.
One what is the status of your U S. Production timeline are you still on target for initial production by the end of this year, we remain on track for the first FX Super one rollout.
You asked about a year and recently, we have announced Super one has commenced its trial production base.
And I'll hand substitutes victory this procurement and installation work on progress in the Middle East deliveries are planned to start this year.
Two.
Are you going to be presenting at any upcoming investor conferences and will they be webcast.
We are scheduled to participate in several investor conferences, this fall, including the Deutsche Bahn car conference in Germany on September eight to 995.
And L. A alto conference from November 21st 230.
We plan to participate in additional investor conferences in the fourth quarter, and we will keep the NASA community updated.
Most of these conferences will be webcast live stream.
We'll publish the schedule a link on our Investor Relations website.
Last week I.
Presented at the Jpmorgan Auto Investor Conference in New York All of that's false.
Hi.
Three what is your strategic plan in the Middle East market can you provide an update on the operations there.
The Middle East is the third major pillar, if that's global market strategy.
Product and capital market.
China on the U S. We help a handover ceremony and Russell Kramer UAE for our original factory and operations facility.
A critical step forward.
Planned for 2025.
To begin sales of the Super one model in the Middle East market, followed by sales in the us.
In the U S market by the end of the year.
Four.
Do you have a list of feature events, where we might be able to see the vehicles and production facilities.
Yes, and we are ramping up physical presence and visibility through a series of high impact offline activities.
Except for one.
You officially unveiled and kicked off the second chapter of our bridge strategy over the weekend at our Pebble Beach event.
We will also attempt.
Auto conference on November 21 to 30.
Hi.
With TARP funds like Blackrock, and vanguard, increasing holding what things have come up in your conversations with them.
We are glad to see capital markets are recognizing and gaining confidence in F F authentic value and long term growth potential.
We've had constructive conversations with institutional holders around scalability governance and capital efficiency the.
The increased holdings reflect confidence in our long term potential and we continue to work closely with these stakeholders to ensure alignment on strategy and transparency.
<unk>.
How do you plan to achieve the same level of the user experience and human machine interaction high level intelligent connectivity and precise autonomous driving that some of your peers have already accomplished.
We have already built a solid foundation in the area of in vehicle systems, particularly with extensive team experience in Internet services applications and human machine interaction.
For the final FX program, we will incorporate these advanced technologies and features.
That have already been tested and validated India first nine one software platform and intelligent hardware upfront.
We will collaborate with partners and.
Fully leverage supplier capabilities to ensure that resource intensive areas, such as intelligent hardware and algorithms meat industry leading standards.
As for autonomous driving which involves significant investments and regulations infrastructure and data.
Implement it in phases.
Just on technology and consumer demand.
Seven.
<unk> stock price has made significant progress since the second quarter could you briefly introduce what your company's multi core value is.
<unk> is one of the army for U S listed New Energy Z Company, two paths cross testing alongside Tatma Lucy.
And really yeah.
And I'm on the field that has successfully gone from concept to commercialization.
What are the investing nearly 4 billion and a full closed loop system in the United States.
In compact in RMB.
Safety testing certification manufacturing sales and after sales service.
As a master lease the company.
Benefits from strong liquidity.
As annoying.
And a broad shareholder base.
Our premium brand image.
It's well established.
In our <unk> series targeted the untapped losch and Martin in the United States.
And I have a handful of California facility.
We currently have an annual production capacity of 10000 units.
Waste can be scaled to 30 to 50000 Union.
The production of <unk>.
And the FX vehicles under certain conditions.
American company with deep Chinese food.
We keep close contact with half China Oems.
Tier one supplier.
We're leveraging global supply chain and languages.
Pulling cost speed and scale.
To deliver greater efficiency to the United States market.
Allergy is now active execution.
Eight besides the FX Super one you've also mentioned developing a second FX model, how do you plan to achieve it.
Currently aside from software most of that Capex work focuses on engineering management, therefore, many resources and capabilities can be reused and shared within fixed.
Super One project. Meanwhile, the second model will be managed.
With staggered resource allocation to better utilize existing resources.
Nine which flagship F. F 91 technologies are being integrated into the FX product line, how are you managing cost and complexity in that transfer.
These resources are mainly divided into two categories like phone based model based.
Platform based category primarily resolves.
Ron.
<unk> AI software and application of Internet technologies.
Which also benefits effects.
It really represents the company's core competitiveness and will be the primary focus of investment.
Mueller base category includes vehicle programs since production has already reached a relatively mature stage.
From the software portion most of our investment in this area, we will focus on ex match production development and complete vehicle testing.
10, what is your monthly burn rate.
As we mentioned before for Q2, our adjusted operating losses stood at 27 4 million.
That translates to an average monthly operating loss of approximately $9 million.
Which includes expenses across cost of revenue research and development sales and marketing and general and administrative functions.
Thank you for your time. 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.
That concludes today's conference call. Thank you for your participation.
Thank you that does conclude today's teleconference and webcast you may disconnect. Your lines at this time and have a wonderful day, we thank you for your participation today.
Okay.