FARADAY FUTURE INTELLIGENT ELECTRIC INC. Q3 FY2023 earnings call

• Delivered 7 vehicles of the FF 91 2.0 Futurist Alliance in Q3 2023 and onboarded 10 new FPO co-creation users.
• Hosted the inaugural FF Developer Co-Creation Festival at the Pebble Beach Concours d'Elegance for branding.
• Showcased FF 91 2.0 Futurist Alliance's performance with record lap times at raceways.
• Made production improvements, with final quality customer craftsmen audit (CCA) improving by 50% compared to initial scores.
• Launched leasing program, LA flagship store construction, mobile service fleet, GCLA sponsorship, Bureau of Automotive Repair license, home charging installation program, and public charging program.
• Focused on ramping vehicle production, building brand with co-creation, and forging alliances with industry leaders.

In the third quarter of 2023, Faraday Future became a revenue-generating company with $0.6 million in revenue. Cost of goods sold was $16.1 million, primarily due to early-stage vehicle production inefficiencies. Operating loss was reduced to $66.4 million compared to $80 million in Q3 2022. Net loss was $78 million compared to $119.9 million in Q3 2022. Total assets were $579.5 million as of September 30, 2023, and total liabilities were $317.7 million. Net cash used in operating activities for the nine months ended September 30, 2023 was $240.4 million. Capital expenditures were $10.8 million for the same period. Cash as of September 30, 2023 was $8.6 million.

• Target to produce approximately 1,000 vehicles next year, subject to capital, supply chain, and permits.
• Investor Day on November 15 to detail master plan for stability, focusing on streamlining operational expenses and optimizing costs.
• Aim to reach Phase 3 co-creation delivery by end of Q1 2024.
• Talks with strategic investors to secure transformative capital.

• Forward-looking statements subject to risks and uncertainties causing actual results to differ.
• Risks detailed in SEC filings, including risk factors in annual and quarterly reports.
• Concerns about potential market manipulation and illegal short-selling, engaged shareholder intelligence services to address this.

Q: Clarify timing of $90 million Class A common stock issuance and revenue from deliveries.

A: $90 million Class A common stock issuance closed after Q3. Q3 had 7 deliveries with $0.6 million revenue.

Q: Confidence in reaching 1,000 units next year and Matthias Aydt's background.

A: Focus on ramping production with supply base preparation, Matthias Aydt has 40 years in automotive, including roles at Porsche, Ferrari, etc., and over 7 years with Faraday.

Q: Details on equipment, capital needed for mass production and cost optimization.

A: Aiming for 10,000 units per year, ramping up from batch build to in-line build, finalizing paint facility setup, and optimizing material flow and quality; focusing on cost reduction through manufacturing optimization and in-sourcing.

Q: Non-equity financing and convertible note restructuring.

A: Considering IP-based lenders for financing, in talks to restructure or limit impact of existing convertible notes to reduce dilution