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

This event is Pebble Beach set, I'm not trying to sell you a car. I'm not trying to sell you anything. We just happened here to have fun, right? And so we're about to have -- we have great wines here. We're here just to work park, but also owner of the house -- yes, thank you. And here, listen, Faraday Future with YT and Max it kind of makes it wild. I hosted a dinner for Michelle Earley to something available in the market so coming to what is needed in Asia. Of course, in Asia, I got my friends, they bring me with alpha and everything that they want to do something to better. But it's hard. It is hard. So anyways, I'm glad. New things I really -- former majority leader of the California State Assembly. Today as a Faraday Future Co-creation Officer, creator of California's blockchain working group and someone who in the future of work, it's an honor to be here with you today. We also have the pleasure of being joined by 5 other speakers, YT, Founder and Co-CEO of Faraday Future, Jerry Web 3 key opinion leader; [ Brody Mullen ], Treasurer, Fiona Ma. If AI represents a new revolution in productivity, then Web 3 represents a revolution in the relations of production. The next is technology. AI and Web 3 aren't just buzzwords. They are reshaping industries, challenging institutions and unlocking possibilities we're only beginning to understand. The growth we're seeing in high-performance computing, large language models and blockchain ecosystems is no longer theoretical. It's real around the world from the Middle East and the fusion of Web 2 and Web 3 is shifting into high gear. Today, as we mark the launch of FFAI we're stepping into a version to create the next wave of economic transformation. I care deeply about the future of California. Our state has always been a launchpad for bold ideas whether it's semiconductors in the 60s, the Internet in the '90s or AI and blockchain today. California has consistently -- that means fostering innovation, building modern infrastructure and crafting thoughtful policy that protects consumers while encouraging breakthroughs. I want to thank FF for inviting me and all of you take all of us, technologists, policymakers, entrepreneurs and citizens to shape what comes next. Thank you. I'd like to now play a special video message from California State Treasurer, Fiona Ma. [Presentation]

Strategy and intelligent mobility and it isn't just the global hub has invested over $3 billion and [indiscernible] it also reflects today's launch a legit electric vehicle and technology and advanced sustainable development world wide. I look forward to seeing you continue to push boundaries and shape an even brighter future right here in California.

Thank you, Fiona. Thank you, Ian. [indiscernible] today we gather here again to witness another [indiscernible] for FF with AI [indiscernible] and the [indiscernible] this is the backdrop for FF's original [indiscernible].

You make a lot of money, that's all I want to say about that, all right.

[indiscernible] thank you. Now I will hand it over to Jerry Wang [indiscernible]. Thank you, everyone.

All right, thank you. Yes, hello again, everyone. Well, my name is Jerry Wang, the [ C10 ] Treasury Plan, which is built on the [indiscernible] Index we just unveiled. So [ C10 ] Treasury is FFAI's strategic crypto coin downside protection mechanisms. We intend to raise funds in phases to acquire and hold for the long term, the top 10 mainstream crypto funds by market capitalization. This strategy is designed to strengthen portfolio cash flow [indiscernible] the crypto flywheel is planned to be operated independently by a wholly owned subsidiary of FFAI. [indiscernible] we aim for capital operations groundwork for potential human strategy [indiscernible] will be including the C10 treasury [indiscernible] and the combined portfolio will be a flexible combination evaluated content [indiscernible] and [indiscernible] optimized ROI and fixed yield directly reflecting the FFAI treasury's annualized return to planning to start asset allocation for the strategy's execution. On the asset under management and return, later phase, we will work hard to speed up scaling looking the long-term growth divided by mainstream assets while using dynamic rebalancing to capture 3 main reasons. First, more [indiscernible] in the top S&P in ETFs past 10 years as by back casting with annual compound [indiscernible], in both the cases a direct [indiscernible] with fair value changes in Q2 alone producing a TWD 14 billion unrealized gain. We believe in the potential for a decade-long crypto bull market ahead. Our goal is a treasury strategy with stable, stronger return and a new standard that can share the value and rewards of the crypto industry's growth in the next years. At the same time, by partnering with top custody platform in the industry, we expect to have sufficient prevention against extreme risk such as loss caused by capital. On the value return to FFAI on the vehicle side, the current industry average staking yield is 3% to 5%. Based on this [indiscernible], we plan to allocate staking returns on a regular basis, proportionately to stockholding as follows: approximately 1/3 expansion, 1/3 for treasury reallocation and [indiscernible] driving compound interest coordinated growth in market value and business under the flying wheel model. 1/3 might be used for stock -- these crypto coins are not just reserves. They're also a flexible funding engine. In the context of a long-term bull market, income have potential to completely reshape FFAI's 3 financial statements. On the income statement side, it may substantial income for FFAI's [indiscernible] financial statements. On the income statement side, it may require substantial income for FFAI. On the balance sheet, holding crypto coins, we can improve the asset liability structure and build the potential for net asset growth and a very sustained operating cash flow, reducing reliance on higher cost finance. Now let's welcome [indiscernible] a leading [indiscernible] influencer and educator to share how the 2 businesses work together in [indiscernible]. Thank you. [Presentation]

[indiscernible]. Next, please join me in welcoming [indiscernible] to the stage.

Thanks, [ Wendy ]. I'm [ Brody ]. Even though the dual flywheel will empower each other, the [indiscernible] EV business and the crypto business with 2 independent entities under the public listed company FFAI. The core principles will have separate legal entities, operations and eventually management. A separate account will be set up and asset transparency will be ensured. There will be no direct capital flows. Earnings from the crypto flywheel will not directly subsidize the EV business. If capital movement is required, it must go through the parent company, FFAI. There will be an independent operating structure crypto AI with its own Board of Directors and management team. There will be asset separation custody. Digital assets will be helped the separation mechanism not only ensures independent control over funds and risk, but enables industry and capital to work in concert, delivering safety, transparency, efficiency and long-term stability. Now let me hand it back to [ Ian ].

Thank you, [ Brody ], the flywheel and dual bridge strategy have born to life, marking the official launch of the second chapter of FF strategy, creating a new meta channel between Web 2 and Web 3. FF is pushing forward full speed in rolling out a brand-new growth model where real-world assets plus on-chain economies fuse, evolve and thrive. Right now, we stand at a singularity, a point where the walls between technology and business, industries and ecosystems shatter under the catalytic course of our dual flywheel dual bridge strategy. And in this moment of transformation, together with like-minded visionaries, FF is lighting the spark of a great change. One that redefines value, unleashes new productivity and reshapes the very fabric of production, Faraday Future. Drive the future best. Thank you.