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

Hello. Welcome, everybody. I want to welcome you to our Stockholder's Day here in Las Vegas. I'm so glad you could all join us today to hear about some truly groundbreaking updates from Faraday Future. I'm John Schilling, Director of Communications and Government Affairs here at Faraday Future. Before we begin, please take a moment to note the forward-looking statement shown on the screen. For more information on factors that may influence our business and financial results, we invite you to visit the Investor Relations section on ff.com or review our filings with the SEC. The slides being shown today are also available on the Investor Relations section of our website. We have a number of exciting topics to announce today, including for the first time in 2026, we will systematically and comprehensively share the information many of you care about most including updates on the complete FX Super One road map covering production, sales, delivery, service and capacity ramp-up details. We'll announce the upgrade to the bridge strategy to the EAI industry bridge, an exclusive preview of new product categories and an update on the execution road map of the company's 5-year business plan. We will also have time at the end of the presentation for you to ask questions and also have an opportunity to engage directly with company leadership. Today, I'm joined by a number of our FF and FX leadership teams, including Matthias Aydt, our Global Co-CEO of Faraday Future; Max Ma, our Global CEO of our FX brand; Jerry Wang, President of Faraday Future; Koti Meka, our CFO; and our founder and Global Co-CEO, YT Jia. Now to kick off today's presentation, I want to draw your attention to the video from Matthias Aydt, as he could not join us in person today due to his travels in the Middle East. Here is his video. [Presentation]

And as John said, I'm sorry, I could not join you in person today as I'm currently traveling in the Middle East. So we're seeing our ongoing operations here in this region. First and foremost, I want to thank all of you for taking the time today to hear from myself and other members of our leadership team. We've said it before, but I want to say it again today. This event and all of our forward-facing communications to our stockholders reflects Faraday Future's commitment to transparency, stockholder engagement and long-term value creation as the company accelerates toward its mission of revolutionizing intelligent electric vehicle space. I want to give you all a quick recap of major highlights on what the FF and the FX brands accomplished in 2025. And as long as I'm in the Middle East, I'd like to share some updates from this region first. FF and RAK Digital Assets Oasis, also known as RAK Innovation City, recently entered into a strategic MOU to collaborate across 3 key areas: AI, Web3 and Embodied Intelligence. We also delivered the FX Super One to RAK Innovation City, the second FX Super One delivery in the UAE. The first FX Super One user in the UAE was global football legend, Andrés Iniesta. FF currently operates a regional facility and the operation center in Ras Al Khaimah covering approximately 108,000 square feet, including office space, production workshops and an operational hub through a combination of technology enablement and localized manufacturing FF continues to promote the development of a new energy vehicle ecosystem across the Middle East. Now to the U.S. market, we announced the establishment of our second brand, Faraday X or FX as we call it, in late 2024. To support FX product development, we kicked off U.S. homologation and road testing for the FX Super One in early 2025, to keep us on track towards regulatory and production milestones. FF 91 deliveries continued throughout the year, expanding our regional footprint beyond California. Our most recent delivery happened with Hebron Sher, CEO of ZEVO on December 22, 2025 with the delivery ceremony to be held later this month. On July 17, 2025, we hosted the global initial launch of the FX Super One NPV in Los Angeles. We have received nonbinding and nonrefundable B2B preorders for more than 10,000 units of our FX Super One, which keeps increasing since the launch event. Also in July, we hosted a successful reception at the Capitol Hill Club in Washington. The event included private meetings with over a dozen U.S. lawmakers focused on tariffs, technology and American manufacturing. We were honored by the strong turnout and interest in FX's role in advancing domestic EV production. In addition, Darnell Trump Jr. expressed support for our commitment to U.S. manufacturing and assembly, recognizing FF's role in advancing innovation, creating jobs and supporting America's economic comeback. On August 16 at Pebble Beach, FF unveiled its EAI and Crypto Dual Flywheel and Dual Bridge Echo strategy. Only 3 months later, our majority-owned NASDAQ-listed company, Qualigen Therapeutics, Inc. completed its name and ticker change to AIxCrypto Holdings, Inc. and AIXC, respectively, representing an important step in advancing the FFAI and AIXC dual flywheel, dual bridge and dual-listed company framework and supports the ongoing development of EAI and crypto initiatives aimed at bridging Web2 and Web3. And that's how Faraday Future ended 2025, riding the wave of America's come back. Thank you. Now Max will talk about the key...

Good afternoon. I'm Max Ma. I'm the Global CEO of FX. So at FX, my core responsibility is very clear: to design, implement and execute the FX bridge strategy, and also to turn it into a scalable, repeatable industrial system that enables Faraday Future and Faraday X to produce the embodied AI vehicles in the U.S. and also to serve U.S. and other key markets, with a faster, smarter and of course, fundamentally lower risk. Well, today, I will focus on how we are executing that strategy, starting with what matters most for 2026, we see the first key results of FX EAI bridge strategy. And also, that is the FX Super One. Well, last month, we achieved a major milestone. Our first U.S. preproduction FX Super One rolled off the line at our FFAI factory in Hanford, California. This was not simply a vehicle milestone. It marked a strategic inflection point of FX and for the bridge strategy because for the first time, we completed initial closure of the FX bridge loop in the U.S. We covered the global supply chain integration, localized testing and homologation, customs and regulatory clearance, industrialization and final assembly and the U.S.-based operational deployment. This means the bridge strategy is no longer a concept, it is now a working industrial system. Well, besides the expertise of FF reflected in the FF 91 2.0, the cars you have seen, based on our 10-year development and manufacturing experience, this upgraded system proves further 4 critical capabilities of FX. Well, the #1 is a proven path to navigate tariffs, ICT compliance and regulatory requirements. The second is a closed-loop synergy between the engineering, supply chain and high-volume manufacturing in the U.S. The third one is a repeatable mass production framework to further to future FX vehicles. And the last one is basically a scalable channel to unlock global automotive innovation into the world's highest value market, which is the U.S. And this is exactly what FX is created to do. Well, again, simply put, FF created the basic FF as a company, we created and realized the end-to-end course from 0 to 1, with deeply accumulate expertise for car making and AI for the premium market. The FX stands at the shoulder of the giant and further unlock the resources from the industry and aims for mass volume and bring the best product to home market users. So now let's focus on the Super One. The FX Super One is not just a new MPV. It is the first mass volume first-class embodied AI MPV designed for the U.S. market. It is our first large-scale carrier of FX automotive EAI platform where intelligence space, AI interaction, sensing, computing and power and of course, extended range capability, all come together in a single mass market platform. So Super One is the vehicle through which FX will validate our product system, our bridge system, our manufacturing system and our EAI deployment system. Well, since the product is now very clear, let's talk about the U.S. production and delivery road map, I think this is most interested point of this session. Our U.S. delivery plan is structured into 3 delivery phases, driven by accelerated deployment development and integration activities, compliance discipline and user value creation. Well, Phase 1 will be Q2 this year with the initial deliveries to the FX Par co-creation partners. This phase prioritizes deep user engagement, system validation and experience refinements. Well, after the Phase II to be -- after that, the Phase II aims to be the Q3 this year. So during this phase, we plan to have a controlled and limited deliveries to industry leaders and B2B partners alongside controlled production ramp up. And finally, the Phase III which is planned to be the Q4 this year or Q1 next year, depends on the execution and transition status into a full-scale U.S. market delivery, the structure is designed, not for speed alone but also for quality, user feedback, reliability and long-term scalability. But to support this, our U.S. after sales and charging ecosystem are targeted to be completed in Q2. Also a very important side note, starting from 2026, FF and FX vehicles will have direct access to Tesla's super charger network. While people might know why we have such a timing plan, I think it is important to point out the U.S. regulatory requirements and homologation is one of the highest standards and the most critical execution pillars of the bridge strategy. While leveraging the experience built through the FF 91, FX Super One certification is progressing according to the plan. Component level certification are well underway in this respective stage. And the full vehicle EPA, CARB and FMVSS, homologation will formally launch in April. The overall bridge strategy has basically been conceptualized for mass success, utilizing our key markets globally. While the FX Super One is already being delivered in the Middle East, as we know, there, we are using the region as a co-creation and early deployment environment. While accelerating localized ramp-up, this dual market execution further validates the global flexibility of the FX bridge strategy system and also provides great training for the U.S. market. While the FX Super One is our absolute strategic and operational focus, FX is not a single vehicle brand. Behind Super One, we are already conducting preliminary planning and feasibility study for our next major product platform, the FX 4. The FX 4 will extend FX into a new high-volume segment and become a second large-scale carrier of FX automotive EAI architecture. While more information will be provided later. And at this stage, actually, I'm very much looking forward to an exciting year of 2026. And then FX Super One is the starting point. It is where the bridge strategy becomes real. It is where automotive EAI moves from vision to mass deployment. This is also where FX begins its volume journey. The U.S. market has waited a long time for truly intelligent versatile first-class MPV, and now it is here. All right. Thank you, everyone. Now let's welcome Jerry Wang on the stage.

Thank you, Max. My name is Jerry Wang. I'm the President of Faraday Future and Co-CEO of AIXC. Faraday Future has 4 major competitive advantages that make the business model unique and defensive. First of all, the unique Light 4, Swift 4, Focused 5 and Empowering 5 model of FF's global automotive industry bridge strategy. We can adopt a very lightweight model, enabling us to quickly achieve product testing, validation, mass production, sales and delivery with relatively limited investment. Second, the expectation of support from our S-Tier 1 bridge strategy suppliers has been instrumental to our progress, leveraging partnerships with S-Tier 1 OEM suppliers, while performing final assembly in our Hanford manufacturing facility positions FX uniquely well to realize significant tariff effectiveness. The third competitive advantage is on the regulatory requirements for the software based on the ICTS regulations. Because FF created the software from the ground up in the United States for the FF 91 including application, middleware, and operating system, we could empower the mass market FX vehicles with much of the core technology, software and AI capability of the 300,000 FF 91. For instance, the FF AI 2.0 system will also be deployed for the potential FX lineup in the future. Lastly, FF is also building a network of FX Par in the United States to showcase the vehicles in person and provide aftermarket services. As Matthias and Max have shared, FF is delivering vehicles to the UAE and successfully completed preproduction vehicle coming off July in the United States, less than a month ago. And we believe this presents an attractive risk-reward opportunity for investors. Faraday Future operates under 2 main brands, the FF and the FX. FF 91 2.0 is a niche ultra-luxury flagship model benchmarked against brands such as Bentley and Rolls-Royce. It is currently in limited delivery stage, exclusively serving the spire community that includes celebrities, stars and leading entrepreneurs. The FX is targeted for the mass market. We completed the launch of the FX Super One in the UAE and the vehicle competes with Cadillac Escalade and is priced around 84,000 in the UAE market. There will be additional vehicles under this brand, including the FX 4 and another vehicle is in the works. FX Super One is designed as a mass market volume model, targeting a much broader audience. FF's 5-year cumulative production and sales target is around 400,000 to 500,000 vehicles, primarily driven by FX Super One, FX 4 and future vehicle models. Key target markets, including the United States, supported by strong interest and momentum in the Middle East. Other high-value markets and additional model under the FX brand are also currently under consideration. Based on our business plan, the company expects to produce and sell 250 units in 2026, 4,900 units in 2027 and 22,000 in 2028, 130,000 in 2029 and 250,000 by 2030, aligned with our model introductions and production volumes in our base case. We also aim to achieve positive EBITDA, which is earnings before interest, tax, depreciation and amortization or profitability within 3 years with an estimated target contribution margin rates of more than 20% aligned with our production volumes. Just to summarize and highlight key points in our 5-year business plan. We have a co-creation vehicle online direct sale system and an R&D strategy with an AI-focused underpinning the EAI ecosystem. Our business plan execution will focus on reshoring our supply chain in conjunction with efficiently managing our manufacturing capability. We will continue work to strengthen our government affairs efforts. Our confidence is underpinned by strong market demand and a proven platform that can scale with our OEM partnerships. In addition, we have made substantial progress across operational and regulatory milestones. This also includes advanced engagement and readiness with key suppliers, meaningful completion of homologation activities and significant progress at our Hanford manufacturing facility, encompassing final assembly readiness, engineering validation, crash testing, battery safety certification, software compliance and other regulatory requirements. We recognize that execution risk is inherent in any business plan. Accordingly, we have rigorously evaluated a range of scenarios across production pacing, cost management and capital expenditure deployment. Over the next 12 months, our primary focus will be disciplined execution and timely delivery of vehicles to our consumers while maintaining flexibility. We believe this approach positions us to mitigate risk and advance steady towards the objectives outlined in our 5-year business outlook. We continue to uphold the stockholders' first principle by fully optimizing the capital structure and minimizing overall financing cost. We aim to attract institutional investors, and while maintaining necessary flexibility, we remain firmly guided by core strategy and long-term growth. We believe we manage capital efficiently and need much less additional funding to reach breakeven compared to our peers. We believe that the successful validation of our business model through scale production volumes will enable further improvements in operational efficiency, accessing diversified funding sources and the development of additional strategic partnerships to support long-term growth. With that, I'd like to welcome our CFO, Koti, to discuss more about financials. Thank you.

Hi, everyone. Let me start by walking you through the slide on market capitalization. So this shows the market cap of major auto manufacturers. And on the far left, you see Faraday Future with a market cap around $200 million. All the other automakers market caps are an order of magnitude higher, which we believe presents significant upside opportunity as FF executes on this business plan. If you take a closer look at electric vehicle makers in the U.S. such as Lucid and Rivian and their market caps, they are nearly 20x to 100x higher. The markets have already embedded risks associated with FF, which we think represents a favorable risk-reward opportunity especially as funding and liquidity improves based on the execution of our asset-light business model. Now turning to the baseline scenario. The slide shows FFAI current metrics versus projected year 3 of the business plan. We expect market capitalization, revenue EBITDA or profitability and cash flow to improve significantly over the next 3 years. And finally, this compares FF year 3 business plan with the Lucid's trailing 12-month EBITDA and cash flow for more of an apples-to-apples comparison. This represents a similar time frame in the life cycle. EBITDA is expected to turn positive earlier in the life cycle and FF's projected cash flow from operations shown side-by-side with Lucid demonstrates that FF business model is vastly different and more efficient by utilizing a proven platform and leveraging economies of scale with our OEM partner. Now let's welcome our Founder and Co-CEO, YT, for more highlights and our new strategy announcement. Thank you.

Yes. Distinguished investors and our FF supporters joining us via live stream, welcome. Today, we mark Faraday Future's first ever Stockholders' Day here in Las Vegas. It is also the first time we are systematically and comprehensively sharing what our investors are most interested in. 4 milestones for FF Super One, along with our 5-year business execution plan. More importantly, today, we will witness another truly exciting moment together, the unveiling of a new product category and our upgraded global EAI industry bridge strategy. This expansion will not only further solidify the foundation of FF EAI ecosystem, but also significantly raises our long-term growth ceiling over the next decade, creating greater value for our stockholders. And Max and Jerry shared FX Super One now has a global plan covering mass production sales, deliveries, service and capacity ramp up. In the U.S. market, we aim to complete the Phase 1 delivery, primarily targeting FX Super One partners and cap at 50 units. By the second quarter of the year, this will allow us to quickly gather real-world user feedback on Super One and to get co-creation greater value. In the third quarter, we plan to enter Phase II delivery with limited deliveries to industry leaders and B2B partners and its data capacity ramp up. Deliveries in this phase are planned to be capped at 200 units. And we are targeting positive contribution margin at this stage. From 2027 onwards, our target for Super One will include both BEV and HEREV models, driving our volume to about 4,900 units in 2027, 18,000 units in 2028, 38,000 units in 2029 and 55,000 units in 2030. Regulatory and compliance certifications for Super One are also progressing smoothly and on schedule. Key component certification has almost been completed, laying out a solid foundation for full vehicle certification. Next, we will complete vehicle level, EPA, CARB and FMVSS related communication as planned ensuring readiness for Phase II delivery in the third quarter. In the fourth quarter of this year or the first quarter of next year, we aim to begin Phase III full-scale delivery that is open to everyone, bringing first-class EAI MPVs on the streets across the United States while continuing to ensure positive contribution margins. At the same time, we plan to host the final launch of FX Super One in the second quarter. Alongside the full build-out of our U.S. after sales and charging service network, we have already secured access to Tesla Supercharger network in the U.S., Canada, Japan and South Korea, positioning us well for large-scale reputation-driven delivery. In the Middle East, deliveries are continuing and we move toward capacity ramp-ups with priority given the high-value-added co-creation partners, including local government related partners. In December of last year, with the support of the Board of Directors, we reached alignment on Faraday Future's 5-year business plan. This is critically important for accelerating execution, enhancing transparency and maximizing value for stockholders. According to the business plan, the company's overall 5-year production and sales target of 400,000 to 500,000 cumulative units mainly driven by Super One, FF 4 and other planned models. Market coverage will continue to expand with the U.S. and the Middle East as a core market, while selectively entering additional high-value regions. If everything goes smoothly, we hope to follow the model we use in Middle East to deliver even earlier. From a financial perspective and sales revenue growth, our goal is to use about a period of 3 years through high-quality mass production and delivery of Super One and FX 4 to achieve positive operating cash flow with gross margins of about 20%, forming virtuous cycle between scale and profitability. After introducing our EAI vehicle strategy, we now come to another truly exciting moment. Now I officially announce that after a long period of development behind the scenes, our global EAI industry bridge strategy is launching a new EAI product category, Embodied AI robotics. Wait, there's more. We aim to take the lead in opening a new $1 trillion AI frontier starting in the United States. Our goal is clear: to become the first company in the U.S. to deliver humanoid robotic product to the market and one of the leading U.S.-based AI robotics companies. The dual-track growth model driven by both EAI vehicle and EAI Robotics could define a brand new growth curve for Faraday Future over the next years. So why are we choosing now to officially unveil this critical strategy to the world? And why can FF succeed in the robotics space? I will explain in detail in the dual public company structure weekly report this week. Over the past 2 days, we hosted a private preview and the experience sessions for our first batch of FF embodied AI Robotics products. Invited guests had an early look at the initial results of this strategy. And we are waiting for the official launch. We welcome our guests to the set on stage to connect with our team after the event to arrange a private preview and experience. But before we share more, someone wants to say hello to his new friends.

I am FF Robot. Hope to meet you later.

Incredible, isn't it? It's only a sneak peek of what's coming. And that brings me to the next big announcement on February 4, once again here in Las Vegas. We will hold FF AI Robotics Product final launch at the National Automobile Dealers Association NADA Show. We will unveil our first embedded AI robot products, open public product experience and we begin sales at the same time. During the NADA show, we will also host the first FX Par summit. This will give partners the opportunity not only to join the FX vehicle sales and the co-creation network, but also to become an early FX Par partner of FFAI Robotics. We welcome dealers from the automotive and the technology industries to register for the event and join our FF Par network. And we work together to open the grand future for EAI EV and AI robotics, sharing these meaningful milestones with our stockholders at the very beginning of 2026 makes this moment especially significant for the EAI flywheel FFAI. We hope 2026 is the year when years of accumulation turn into results; it's a year of delivering, a year of expected revenue growth and margin expansion. And a year when we intend to make a real push toward our profitability inflection point, we will fight relentlessly for delivery, we will honor our commitment with action and we will earn back even greater trust and confidence. For the full New York outlook, please check out the weekly report this week. For our crypto flywheel in 2026, AIC note it will drive systematic execution around 3 driving force businesses: RWA and EAI Ecosystem Development, BesTrade AI Agent & Web3 AI Devices and Crypto Assets AI Management & ETF. The goal is to complete the transition to infrastructure build-out to profitable commercialization. This will help complete the mutual empowerment between our EAI plus crypto flywheel dual bridge and the dual public company structure. Particularly, this could deeply empower and enable delivery and the ramp-up of FF's EAI EV product and the EAI robotics products. In 2026, the year of the horse, we will move forward like a powerful horse and strive to victory. In the days ahead, we will always uphold our principle to stockholder first. And we will move forward together with you. And together, we will witness Faraday Future grow into a truly great company. Thank you all.

Thanks, YT, and the rest of the leadership team who presented. We're not finished. So I'm going to ask the group to come up the leadership team, and we're going to take a quick photo. And then we're going to do a Q&A session with the group. So come on up, guys. Thank you. All right. Give us a second. We're going to get set up, and then we will do a Q&A session.