Faraday Future Intelligent Electric Inc. (FFAI) Earnings Call Transcript & Summary

All right. Hello, everyone. Good afternoon. I know you just heard me a little while ago. I'm John Shilling, again. I'm the Director of Communications here at Faraday Future. [Operator Instructions] So again, welcome again. This is part of our all hands meeting for employees. It's kind of the first time doing this with the public. So we're excited that you guys can kind of be in-house and listen to a lot of what we're going to say. So this is a continuation of our FF Stockholder Community and FX Co-Creation Day. I also want to welcome all 4 of our global FF offices that are also joining us today, including Hanford, our manufacturing facility. Silicon Valley, Beijing and the UAE. They're all joining us today. So we want to welcome and say a warm welcome to all of them as well. We hope that you guys all had a chance to participate, obviously, in our earlier FX run drive, if you didn't, if you didn't get a chance, the cars will be out there after this presentation, definitely go out there and experience. Again, hopefully, you all have got a chance to get in there, and found it very enjoyable. We're excited to let you now listen to our leadership. I explain that next door. They're going to show you basically what's next for the FF and FX brands. This is truly a unique opportunity to experience firsthand the innovation, the design and AI-driven performance shaping the future of driving. In addition to the FF and FX product experience and co-creation you'll experience today, we are actively recruiting FX developer co-creation officers during the event, inviting visionary partners to collaborate with the company in shaping the development of FX product and its technologies. This event is a unique opportunity for all stakeholders to experience FFs vision, value and strategy firsthand. I want to quickly introduce you to who you'll be hearing from in this section of the event. First, after me will be Lev Peker. He's our FF Board member, Chair of the Audit Committee and Independent Director at FFAI. YT Jia, who's our Founder and Partner and Chief Product and User Ecosystem Officer. Edric Guo, he's the Chief Executive Officer, CEO and Head of the Investment Banking division at Univest Securities. Matthias Aydt, who, I think some of you met, he's our FF Global CEO; Jerry Wang, who's our President of FF. Koti Meka, who's our Chief Financial Officer; and then also, we'll have a short video from Xiao Ma, Max as he goes by, who's our FX global CEO. Now I'm going to throw it over to Lev. So come on up.

Hello, everyone. My name is Lev, and I'm the Chair of the Audit Committee and Independent Director at FFAI and we have 2 other board members here with us today for this exciting event. We have Jie and Chad with us as well today. So thank you, guys, for coming. First and foremost, I would like to thank everyone for their hard work and dedication as a former entrepreneur and someone that has turned around several companies in the past. I understand the grits that's required to build a business. And that's what everyone here has been doing. It hasn't been easy, and I hope you guys continue persevering. I've seen FF's challenges, journey firsthand. And despite the obstacles, the company has strengthened its fundamentals and was last year's launch of our second brand, and FX marketing a bold new chapter. As the company continues navigating this challenging environment and to position for future success, the board has unanimously decided to appoint YT as co-CEO and in that role, YT will now lead finance, legal and supply chain alongside Matthias, and both of them will be reporting to the Board. With this shift, we're signaling a return of founders, mode and spirit, blending it with professional management for clearer vision, decisive execution and stronger synergy. YT and Matthias' collaboration will unlock FF's potential driving us towards the true inflection point and greater value for shareholders. With the upcoming FX vehicle rollout, this year promises major breakthroughs in our market expansion. Let's move forward with confidence, passion for FF's next chapter. Congratulations YT, and we can wait to see what this team will deliver in the future. And now I'd like to introduce YT.

[Interpreted] Thank you to Lev and board for your appointment. To other colleagues and friends watching online, welcome. Today, I finally have the chance to introduce myself, this time as the Co-CEO of Faraday Future, I feel a mix of emotion, I suppose a complicated and exciting moment for me. Over the past 4 years, I've carried burdens and the company has gone through tremendous challenges and traumas. Now both our operating fundamentals and corporate compliance have significantly improved. But once again, several days ago -- next up, I will announce a series of major transformations for both FF and FX together with Matthias under our new founder plus professional model. And alongside our FF team member, we'll fight to turn the tide. We will rebuild trust and confidence firmly uphold the principle of putting large stockholders and individual stockholders first and drive FF and FX towards success creating maximum value for all stockholders. From Founder and CPO to Co-CEO. I am now entrusted with co-leadership and co-decision making already over the 3 most critical functions in the company, finance, legal and supply chain. Now jointly managed with Matthias. My existing responsibilities will remain unchanged. With this adjustment, we have seen a fundamental change in FF's top-level organization structure and decision-making dynamics. On the foundation of full legal and regulatory compliance, I will lead the creation with more rigorous financial measurement system, including strict cost control and cash flow discipline and build an efficient cost effective supply chain to accelerate the achievement of our strategic goals, reaching positive operating cash flow and profitability as soon as possible. Today is our second Investor Community Day, I want to sincerely thank the stockholders who are here in person and all those who continue to support us from afar. Without you, there would be no FF and FX today. As Co-CEO, my additional new equity incentives are strictly tied to the company's KPI on stock price, market cap and stockholder interest. First, I'm committing to use 100% of my after-tax amount of my $1.2 million promotion bonus to increase my personal stake in FF by purchasing shares in the open market during the open trading window with a 1 year lockup. I'll be one of you, stand shoulder to shoulder with you and define FFAI together. To that end, the Board has adopted a transformative stockholders first equity incentive for me as Co-CEO, which is divided into 2 phases. Phase 1 for every $5 increase in the stock price, for every $700 million increase in market capitalization, I will be granted a 1% equity incentive cap at 5% for this phase. Phase 2, after reaching a 5% ownership stake for every additional $20 increase in stock price or every $3 billion increase in market cap, I will receive another 1% equity incentive with a maximum cap of 9% total. These increases will exclude the impact of stock splits and stock dividends. And in the case of market capitalization, merger and acquisition activity. To put it simply, in order to earn the full 9% equity incentives, FF stock price must exceed $106 which is around 100x today's price. By that time, our stockholders will likely to have seen exponential returns. I will do everything I can to accelerate improvements in our operating fundamentals and lead the company toward our most critical strategic milestones. I'm confident that together with the entire FF team, we will deliver on these milestones and create maximum value for our stockholders. When this equity incentive is achieved, I will dedicate half of my earnings to repay my debt and fulfill my responsibilities under Chinese law, returning home after clearing my debt is a mission I must accomplish. Well legally, I have no debt obligations under U.S. laws. My personal values compel me to act otherwise. I will remain committed morally and personally to fulfill my responsibilities. The other half, I'll reinvested into FFAI ecosystem and to help FF achieve even greater success. You may wonder, why did it take 4 years after the IPO for me to become Co-CEO. And to answer that, I need to go back to where it all started when I first came to United States. Perhaps many friends in the U.S. may not know much about me or story behind FF. Today, I'd like to take a moment to share that. In 2014, around 11 years ago. I came to the United States with a dream of revolutionized industry. Personally, I invested nearly USD 700 million to start FF. It's now been 11 years, though countless setbacks and near death moments, we survived. We fought tenaciously and survived. FF went public on the NASDAQ delivered production vehicles and launched our second brand FX serving mass-market demands. Today, FF stands as one of the last 4 remaining new EVs based in the United States. But since I voluntarily stepped down as CEO over 4 years ago, FF has gone through wave after waves of trials and turmoil. Several days ago, our stock has once again fallen below the $1 threshold and we must face all the hard questions head on. Some say that FFs top level management has long seen complexity, and that management has been chaotic. Some say that FF got up early but arrived late, some marked us for having built only a dozen cars in 10 years, saying that we're all talk and never truly committed, some question whether the global automotive industry bridge can still hold under the storm of the rising tariffs, some worry that the company will have to issue too many shares in order to raise volume, some are concerned about how long can FF cash last, some say that my personal debt is a burden to FF and that I'll never be able to repay it or return home. Truth is some of these concerns are valid, but many are also misunderstandings and distortions of facts. So how did the company get to where they end up today? We need to go back, when I stepped down as CEO and Executive Chair right before FF went public. FF was preparing to go public in 2021, and there were all these voices constantly ringing in my ears, voices from spec company, from financial advisers and even from some of our own executives, all urging me to step back, they warn that if I were to remain CEO, my personal debt would impede our fundraising, our IPO and company's future development. At that critical moment, for the sake of the bigger picture I compromised, I resigned as CEO. I even idealistically believe that bringing in a new CEO, someone who love the company and would fight for it as hard as I did will created a powerful alliance and perhaps that's the best thing for FF but what happened next? Many of you have seen. While the company did successfully go public, what followed was the nightmare. The group of bankruptcy directors from Wall Street joint forces with certain former executives to start the day 1 plan that inappropriately seize control of FF under the pretense of conducting an independent investigation, I alone with several core members of the Chinese funding team was stripped of decision-making authorities. I was almost entirely included from final decisions. As a result, nearly $1 billion raised through IPO was burned away. Vehicles deliveries were delayed and stock prices and market cap plummeted, we were literally 1 vote away from going bankrupt in the Board meeting. Ironically, I was once said that my debt would hinder fundraising, but quite the opposite, nearly 80% to 90% of the financing we secured still came directly through me or because of me. Yet, I had almost no say in how these funds were used. I thought that by compromise and sacrifice, I was doing what was best for the company. I was wrong. What FF experienced instead was an endless series of crisis and new death moments. We found ourselves repeatedly on the edge of bankruptcy, a string of unthinkable disasters like something out of cruel novel that I would never be able to predict. But in the end, the FF Global Partner company then serving as a major shareholder, which we call FFGP, fought through overwhelming challenges and help bring FF back from the brink, restored order and defeated and brought us back from the brink of bankruptcy. After those bankruptcy directors left, we saw some improvement in our fundamental operations and successfully delivered SLD 2, FF 91. However, due to a variety of lingering issues, the company still operates under a professional management model with complexities remain until this day. After a lifetime of entrepreneurship, stepping down as CEO is my deepest regret. It turns out that I didn't drag FF down, truth is, after I resign CEO, FF lost is greatest driver forward, we experienced multiple downfalls and most painfully many who once believe in us lost their trust. That breaks my heart. FF is like my child. It carries my lifelong belief, my resources, my passion and all of that sacrifices and hard choices is the only remaining spark. I've invested nearly $700 million of own money into FF, almost the same amount of the most successful EV founders combined, including those behind Tesla and China's leading EV start-ups. And yesterday, FF's market cap sits at just around $100 million, barely 1/7 of what I personally put in. The disconnect was staggering. So if we're talking about loss, I'm the one who has lost the most, and that's exactly why I'm the one who are most determined to lead this company to success, but I don't harbor resentment and have embraced these experiences, injustices and even prosecution. I believe this is the price I'm paying from the past mistakes. Over the past 4 quarter, the company lost a soul, it shouldn't have a start up. During this time, I repeatedly expressed my interest in taking on more responsibilities, or as Co-CEOs, but these efforts were not successful. Today, I'm very grateful that the Board is making the significant decision during such a critical time. I believe this signals to recognize the founder's model, plus the professional management model would be the right way forward. And that is an acknowledgment to my past successes and failures as valuable assets, which might be the only path to maximize the value. Thanks again for the Board for making this decision. This isn't for me, but it's for FF and also to regain the lost trust. Fortunately, this crisis we're in now is unlike those in the past. This time, the challenges stem mainly from broader market downturns and other external uncontrollable factors, which led to our stock price fall -- dropping below $1 threshold several days ago. Yesterday, when we were running rehearsal, stock price was still below $1. But in contrast, I believe the operational performances and the capital performances were among the best shape in the recent years. That was thanks to 6 key initiatives we launched in May last year under the [indiscernible]. Last May, our stock price exploded and surge over 100 fold with single-day trading volume hitting $3.1 billion. The number of U.S. retail shareholders grew exponentially and the media even hailed FF as the only main stocking bridging Chinese American retail investors. Last year was a survival and self rescue. This year, we're standing at the threshold of a true breakthrough. Well, some may see the current stock price pressure as the crisis, we believe it could be the ideal moment to unlock FF's second growth curve. Looking back at the true root cost of FF's stagnation over the past 4 years, the service level issue may appear to be financial challenges. However, I believe the underlying issue has never been money. Instead, it lies in complexities within company's management structure. For the past 4 years, I only help adviser rights to serve the most critical functions, legal, finance and supply chain. These are all major issues that led to our challenges. Legal is essential for corporate compliance, but it was often used as a political tool. Finance, the foundation for resource allocation and the company's value, supply chain is the most crucial area for cost control represents a significant portion of the company's expenses. But over the last years, many have blamed me for FF's problems. However, no matter what position I held or what transpired as a founder, I've always been the biggest scapegoat, repeatedly stepping up and I was also the one who repeatedly step up to take responsibilities, that I can say with confidence that things have changed. The day 1 plan and their aftermath has finally come to an end, we have an advanced AI EV technology foundation. And even more importantly, we are proud to have a dedicated and skilled workforce. However, it is important to acknowledge that our employees have also been impacted by the challenges and distortions within our management, many of them sitting here have been with FF and FX for 5 or even 11 years. We must make their contribution to ensure their hard work translates into real value for the company. Some may ask, what makes you believe that you can lead FF to success, others even question that whether the failure of LeEco tarnishes my record, to that, I want to say, quite the contrary. My experience with LeEco was the most expensive lesson of my life, but it is also one of the FF's greatest assets today. Over a decade ago, LeEco built the world's first, one and only comprehensive ecosystem spanning 8 major sectors: cloud computing, content television, smartphones, cars, sports, finance and Internet. The tv.com became the world's first video streaming platform to IPO. The TV Super TV became an industry leader within just 3 years, and the TV smartphones sold 17 million units in their first year, nearly tripled the 6 million units sold by the iPhone in its debut year. The [ Tbmall ] was once amongst China's top 3 e-commerce platforms, at its peak, LeEco employed over 20,000 people worldwide. We were at the forefront of the industry twice. First was LeEco, the world's most -- once most successful Internet ecosystem companies, again, in 2017, at CES, when we launched the FF 91. At that time, its influence in the industry was nothing short of Tesla, following Tesla's electrification revolution FF propelled the entire new energy vehicle industry from electrification to intelligence but not long after I became the one who fell from the highest peak to the deepest valley and paid the heaviest price. I want to take this opportunity to express my deepest apology to everyone who wants to work at LeEco and to all those who supported it. I'm committed to turning all of my past entrepreneurship and life experiences into the driving force that will lead FF to success with FF and FX success, I will regain the trust I deserve. So the question is how will we lead this company to true success. Today, I'm standing here, also marking the era of founder plus professional manager model is beginning at FF. We are announcing 3 major targets for FF in 2025 and 2026. The first one is business target. In 2015, the company will leverage the momentum of the ultimate AI tech luxury FF 91 in power FX, swiftly launched development of 3 FX vehicles programs to seize Blue Ocean market opportunities and secure that our first FX vehicle could get offline by year-end, build FX Super One as the top choice of first-class AI MPV in the United States and reached tens of thousands units sold within 2 years of FX mass production. On sales and user ecosystem front, we kicked off the refundable paid order campaign supported by our user acquisition and operation system with ecosystem corporation online direct sales and AI platform that is core. We plan to have the total refundable preorder volumes covered the entire 2026 and 2027 production capacity, this would build a strong foundation for rapid ramp-up, striving to make every FX model a hit products, or even a super hit product. In terms of product technology, we are going all in on AI accelerating development at full speed across our super AI hybrid extended range system and its technologies AI cabin and AI driving platform. Our goal is to equip that FF and FX products with super AI capabilities, disruptive product power and technology power. As for the Middle East strategy, we aim to kick off FX manufacturing and sales in the region as soon as possible, reinforcing its strategic position as the third pole for FF. The second is the financial targets through the gradual realization of our business objectives, we'll strive to achieve a positive gross margin in the short term, reach positive operating cash flow as soon as possible and a further push towards overall profitability. We will continue to strictly control expenses and costs, focusing on core operational areas and provides solid support for strategic execution. Financial compliance is the foundation. We'll quickly establish the strong financial management system and limited risks such as delayed financial reports. Thirdly, is capital targets. We're building a stockholder first philosophy on the basis of full legal and regulatory compliance to help restore market confidence and drive growth through both operational excellence and strong market performance. We'll launch an M&A initiative to leverage our unique capital positioning to acquire high-value cost-effective AI EV technologies and companies around the world, including those in the broader AI-driven mobility ecosystem. These efforts aim to accelerate the recovery of FF's capital market value back to its true intrinsic value. So how do we achieve these 3 categories and strategic goals. I will lead the company to launch a comprehensive set of initiatives, what we call the 10 punch combo to completely to revitalize both FF and FX. This time, we're not just fighting to survive. We're here to win in technology, win in AI, win in the market, win users, win capital and most importantly, win back trust and respect. We're introducing stockholders first philosophy, disruptive spirit, performance is key mentality and lion wealth culture. We'll let our product performance and stock price speak for themselves. We're bringing in the lion's work culture to the U.S. leadership like lions, unity like wolf pack. We ask all hands on deck to reignite our warrior spirit and win back trust, determined to maximize value for our shareholders. Secondly, with our FF and FX to our brand strategy, we're combining this fire market with scalable mass markets through our light, swift and powering model, we aim to rapidly launch mass market products with extreme price experience ratio, making AI, EVs accessible to every U.S. users as quickly as possible. FX is focused on capturing 4 major Blue Ocean opportunities in the U.S. market, extended range vehicles, AI cabin with fresh TV and big sofa features, first-class AI and BEV and AI EVs priced under USD 40,000. Our bridge strategy will continue to drive win-win collaborations among global auto industries, helping bring manufacturing and supply chain strengths back to the U.S. for supporting the expansion in outreach of global EV industry. Third, we're focused on creating blockbuster products. FX is designed to deliver extreme price-to-performance ratio, the ultimate AI EV for the Blue Ocean market. We're going all in on AI aiming to build the strongest AI mobility ecosystem in the industry, accelerating the development and implementation of our AI ecosystem, AI intelligent cabin and AI driving to deliver an all-around AI solution for the EV ecosystem. Fourthly, number four, transformation, manufacturing and delivery systems, we aim to rapidly build an efficient, secure and cost-effective global supply chain and manufacturing system, subject to securing the necessary rights and funding reaching tens of thousands of FX units sold within 2 years of mass production. We'll significantly strengthen our delivery operations, ensuring we hit every upcoming delivery milestones with precision and confidence. Next, let's hear a message from mayor Lou Martinez of Hanford, the city where our FFAI factory is located. [Presentation]

[Interpreted] Number five, transformation of user ecosystem. We're building one-of-a-kind 3-pillar, user acquisition, user co-creation and user operation system, including co-creation ecosystem online direct sales system designed to make every FX model hit product. Our efforts aim to accelerate the accumulation of user equity as well as brand equity. Sixth, transformation of government affairs and strategic partnerships. Throughout our bridge strategy, we aim to build strong connections between governments and strategic partners positioning and FX as the golden gateway to unite both sides. And in addition to the over 50% localized supply chain here. We further deepening the localization of core components. And through our supply chain alliance strategy, we aim to achieve even greater efficiency and robustness in terms of cost control. We also aim to support our global outreach of our supply chain partners. 11 years in the U.S. FF is a U.S.-based company that brings value to the U.S. economy and is actively engaging with government agencies at all levels to explore tariff exemptions, and also support policy opportunities. I'll also share more details with you on our perspectives on U.S. tariff policy and our respected tactics. Now let's hear from the longest-serving speaker in California's State Assembly in history and now speaker emeritus, Anthony Rendon. [Presentation]

[Interpreted]Thanks so much to the speaker. So seventh, the transformation of our corporate management. We are now treating the company as a product driving the complete transformation of our operations, management and system through leveraging AI tools, modular operations and data-driven decision-making we're creating a lightweight AI management system. Eight, transformational financial systems. We wanted to utilize AI to build a stronger financial system. Ninth, transformation of organization and incentives from top down to the front staff, we wanted to build and execute a full commitment, we'll get rid of the outdated reward system and trying to build -- to break traditional boundaries between AI technology, industrial sectors and mobility sectors and introduce and implement this ecosystem to the automotive industry. And we also wanted to combine our stockholder first incentives and to tie closely with our employee rewards programs, transformation of a capital and stockholder value generation. Stockholder first, maximize the interest of all stockholders, especially our investor stockholders. So in addition to the 9 above major changes, we would also maximize our stockholder value by working with cocreator shareholders to implement the demands and suggestions. So we strongly oppose reverse stock split, and we will safeguard the company's public listing status. We would only launch our issuing new shares that would bring the lease dilutions of our stock shares. We would also want it -- we have actually officially launched a campaign to combat the illegal short selling. And I do believe that in the near future, company would bring its true -- will bring its true value back, and we will spend no efforts in strengthening its fundamental. Today, this return isn't just about me. It's the gradual return of FFs founding spirit and our partnership culture. What I am fulfilling is not only a founder's promise to the company, but also the commitment to every stakeholder, every supporter who has stood by us. So through our actions, we wanted to make it seem to everybody. We wanted to gain back trust, we wanted to gain back confidence. So it's happy to see that today, the stock price went above the $1 threshold, thanks to all the supporters who trusted us, whether it's FF or FX, originality disruption and transformation are in our DNAs. We're not just building products. We're building a community of dreamers, doers who share 1 vision, who shared a partnership ecosystem. Over the years, I carried all the weight of misunderstanding, blame and even punishment, deserve it or not, I bear it all. True entrepreneurship is never a smooth road. And heart of entrepreneurship isn't fragile. It's forged like Diamond, the more pressure it endures the brighter it shines, and the journey from darkness to light is the most authentic and powerful brand story of an FF and FX, I was the outliner swept aside by the tides of changes. And now I am the one who lights a spark in the ruins, carrying the dreams and finding my way back against the wind. So today, thank you so much to the trust of the Board. I finally have the opportunity to lead the company to soar, unlocking full potential and delivering maximum value to everybody. I am back. Future is in effect, back to win. Thank you so much, everyone.

Hello, everyone. My name is Edric Yi Guo. I'm the CEO of Univest Securities. We have been serving as the company's investment bank for the last several transactions. Year-to-date, we are pleasured, delight to meet everyone through this video and we'd like to, on behalf of our firm Univest Securities extend our sincere congratulations to our dear friend, YT into taking on the company's co-CEO role. Your guidance and your leadership has always been a big and important part of this company's current reality. And we believe with you taking on this important role at the company, the company is about to witness a very much brighter future. We are also very much looking forward to that. At Univest, we stand by ready with our investors to support you with this endeavor and keep on looking forward to fight this fight as colleagues and as partners. And thank you. We look forward to be continuously supporting this company and again, sincere congratulations.

Good evening, everyone. It's a true honor to welcome all of you, valued stockholders, developer co-creation officer candidates, members of the Global FF community, media fans and most importantly, our employees and their family, whether you're here with us in person or joining through the live stream. Thank you for being part of today's important gathering. But first, I'd like to extend my warmest congratulations to our founder, YT Jia, I don't know if he's back in the room, on his returned to a crucial leadership role as a global Co-CEO of Faraday Future, and this is not only meaningful personal moment for YT, but it's also a defining one for the future of our company. This appointment as Co-CEO signals the beginning of a bright new chapter, what we call Faraday Future 3.0. As many of you know, YT founded Faraday Future right here in California 11 years ago, starting from nothing. Under his vision, the company created the FF 91 2.0 Futurist Alliance, a truly one-of-a-kind ultimate tech luxury EV, and he led the company all the way to becoming a publicly listed company on NASDAQ. When I joined FF, I was deeply inspired by YT's strategic foresight and his unique insights into the future of AI EV industry. While YT had previously stepped down from the CEO role for various reasons, his commitment to putting shareholders and company interest first has never changed. I want to express our sincere gratitude for his sacrifices and contributions. I believe our combination as Co-CEOs will be a strong complementary force to lead at a forward, more importantly, beyond delivering the FF 91 2.0, we are advancing our global automotive industry bridge strategy and our second brand, FX. YT has shared some of this already. And our FX Global CEO, Max Ma will soon share more. Throughout my decades in the auto industry, I have learned one truth, innovation, and perseverance drive progress. We must believe in order to see. And our strategic goals must be rooted in foresight. But even with clear goals, Unity is everything, that means employees and just as importantly, our shareholders, partners and investors. We all share one desire for FF to succeed. We welcome constructive criticism but we also need your encouragement. And let me say this clearly, we will stand firm against malicious illegal short-selling attacks. As YT said, shareholders come first. That's our mission, mine, YT's and the whole company. The entrepreneurial journey is never easy, but we have something powerful, a united and battle-ready team. Every challenge becomes an opportunity for elevation, but none of this is possible without your support. YT and I are not just accountable to the Board, we are here working for you, our stockholders and investors. We are here to deliver real results and earn your trust. Thank you once again. Let's build the future together. I will throw it over to Jerry.

Thank you, Matthias. Good evening, everyone. My name is Jerry Wang. I'm the President of Faraday Future. I've been working for the company for more than 10 years, mainly focusing on fundraising and capital markets, and has raised more than $3 billion, bringing the company to public listing in NASDAQ on 2021. And today, I'm really glad and excited about this new adventure, a new journey we're facing as of FF Futurist 3.0. So I'd just like to share one personal thought and belief, which is, we have obtained all the necessary elements to be successful. And why is that? So let me break it down to 3 parts. So first, we want to make sure that we have the right people. So today, not only my sincere congratulations to YT, but to all FF family, stakeholders that finally, we have our founder, YT, coming back to take the Co-CEO position. This structure has been proven as the best industry practice among the fast-growing technology companies. I cannot think any of the great growing stage of technology companies does not have founder play a very important role as CEO or Co-CEO and by YT and Matthias having worked together for more than 5, 6, 7 years, we firmly believe this structure will lead us to a fast success and deliver further milestones. And second, not only that, but we have a fully dedicated team that works together with YT and Matthias and fully committed experience top industry experts that are working together closely to deliver the best result to all the stakeholders. So first point, I think that we have the right people. And second, I think we have the right method. So previously, we have been running very fast. We're able to deliver FF 91 successfully in approximately 10 years. But right now, besides what we have achieved, we are super focused on having improvement of the company efficiency as much as possible. We have a very solid execution plan, strategic planning and we have a very solid execution and review methodology on a weekly, monthly and quarterly basis to make sure not only we're heading to the right direction but also, we fulfill all the commitment that we have of reaching further milestones on different business fields. And specifically, as my personal focus as I've been running capital markets for 10 years, my focus will be more on the financial planning side. We want to make sure not only we have a strong company, we have a financial strong sound base to realize our goals, but also that we're focusing on the financial planning, profitability as well as capital market efficiency to create more value. So I believe that we have the right methodology. And the last point I'd like to share, this is definitely the right thing what we are pursuing, especially on top of FF. Now we have FX, which is a fantastic business model, business opportunity facing us. So for example, the great OEM partner, we are having a tight collaboration with, there's the top, top-tier Asia OEM that manufacture and deliver millions of vehicles globally, mainly manufactured in China, but we can not only using their engineering service capability, which is less than 20% of average cost of a standard U.S. automotive company to deliver a vehicle, a complete new vehicle, but equally importantly, we're able to utilize their manufacturing capability, supply chain capability, quality and cost control capability as well, which will take years to build and with billions of dollars to invest. So specifically, if we look at some industry benchmarks, we can see that both Tesla, Lucid and Rivian raised more than $10 billion or $20 billion to achieve what they have achieved so far but we certainly believe FF can use very light assets, light CapEx and OpEx to deliver the best result and continue to create value. So beside that, we are firmly committed to roll off the first FX vehicle, the Super One luxury MPV by the end of this year. And on top of that, we're planning to roll out future models, for example, FF 6 and FF 4 in the coming years with a continued delivery of FF 91 and continue to improve our product power. So with that being said, I think we are very strong, fully committed. And I think the team is looking forward to working together with YT and Matthias and continue to deliver best value result to all the shareholders and to all the FF families. So with that, thank you, and I will invite our CFO, Koti to share his thoughts. Thank you.

Thank you, Jerry. Good evening, and thank you for joining us today. 2024 has been a pivotal year for the company. We undertook significant cost reduction measures across the board. We streamlined operations, reduced personnel-related costs, cut back on the professional services and trim the general expenses. These actions were just about tightening the belts. They were about building a more efficient, agile organization. As a result, we achieved a remarkable 75% reduction in cash outflow compared to 2023, all while maintaining operational effectiveness. This year, 2025, we're committed to carrying that cost discipline forward. But this time, with a sharper focus, continuing the production of the FF 91, advancing in the development of our FX vehicle lineup, and strengthening of the core of our organization. That means continuing to build a high-performing team and implementing the processes and systems that provide the robust operational controls we need to scale. Looking ahead, we will continue to pursue opportunities to drive efficiency, improving how we operate, reducing unnecessary costs and ensuring every dollar is strategically invested in our long-term growth. Our commitment is not just to operate lean, but to operate smart. We recognize the access to capital remains a key focus of our production and scaling plans. But with the streamlined cost structure we have built, we're confident we can -- we are positioned to make any capital work harder and go further. We're building a more focused, disciplined and resilient company, and we are excited about what's next. Thank you. With that, I will hand it to Max.

Congrats, YT. I think probably now so many people understand what you have been through, behind your smile, all those sacrifices, critiques or being called liars, or the suffering that you have been through probably all paid off and really thank you for your contribution to Faraday I know this is a very special moment and special feeling, so thank you for that. The announcement has a very significant meaning for the company. So the Board has finally agreed and then recognize your capability and experience that's very important, and the team has become more united after the whole issue that we have in the past. So this is really a great sign and I also want to thank to Matthias for his endeavors to bring back all pieces together so that we can have also the great foundation and get ready for welcoming the great success of Faraday and Faraday X in the next chapter. And also, I think YT has been -- in your training, has been really hard, there's a lot of challenges in the past 30 years, there have been lot of ups and downs. But I think that Faraday teams under your leadership, we've been through that, and we have been always resilient, always optimistic and also never gave up. So this is the foundation for a start of a greater success for FF and FX. I think there has been also a lot of expectation after your coming back and as a Co-CEO, I think that the most important thing and I believe you also agree is the maximization of the value of the shareholder and the company and also to help to turn around the current challenges of the company that we can really start welcome greater success. And also, I think for the team members -- no, actually for everyone, for the team member, for the management, the retail stockholders, there's a lot of people and believe we can start to by having the success to gain the personal or individuals financial return. This is also important. I think on the very end, we are all hoping it is a time that we can make Faraday great again.

All right. Thanks, Max. I just want to say thank you for coming out today. I hope you learned a little bit more about FF and the FX brand. Right now, we're going to move into our cafeteria, we'll do a reception. We'll have Q&A, all of the executive team you listen to today. We'll be over there. So if you have questions, definitely see them, see me if you have a question. There's a QR code that was up there. We have it out on paper, if you want to preorder on FX -- there it is. Feel free to take a picture of that and go through the process. Again, thank you again. I hope you got a lot out of us, and we look forward to seeing you guys in the future. Have a great day. [Portions of this transcript that are marked [Interpreted] were spoken by an interpreter present on the live call.]