Faraday Future Intelligent Electric (FFIE) 24 May 222022 Q1 Earnings call transcript

Good afternoon and welcome to Faraday Future’s First Quarter 2022 Earnings Conference Call. Today's call is being recorded, and we have allocated 1 hour for prepared remarks and Q&A. At this time, I would like to turn the conference over to Mark Connelly, Vice President of Investor Relations. Thank you.

You may begin.

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assets was its areas to our $XXX Turning balance were fundraising approximately to operating were XXXX losses while company in XX, launch XX, million. company we of XXXX. cumulative time our move $XXX negative financial many from and Total continue XX, pressure progress cash $XXX approximately on for are our the versus December XXXX meaningful plan assets initial It expects losses decrease cash given million. the the expenses compared the open certain XXXX of $XX March revenue. costs was XXXX million to The liabilities to a generate $XXX as raise on million were March on has delay operations cash on million sheet. $X of operating that as was million we to XXXX us. the Cash XX, April XXXX. to plans, from and XX, our funds activities, FF and in company's flows generate the from XX, total repayment Since XX, continue of December December portions and the XXXX. to of we was The did industry million we in was before expected note that accumulated XX. Total experiencing filings always expectation $XXX included $XXX March The incur and our make the with beyond significant as to incurred deficit billion additional XX, would balance future And the approximately as delayed of March logistics foreseeable accrued and companies as about materials schedule interest. in and inception,

again, are to to our opportunities. are access the current ramping up Now that have broadly fundraising we of consider more range that widest already we we and activities ensure

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Carsten. you, Operator, now we're ready questions. Thank take to

question proceed comes [Operator Dan Ives first Wedbush. question. Instructions] with Your your from with Please

So can today we of you maybe strategy and walk terms forward? us are through where your in going pricing

Yes. is speaking. Hi this Dan, Carsten

segment of the of marketing placements are product key mouth, word we who a is different, is word getting are influencers out Let ultra-luxury start are this maybe is having great. something you of our strategy. something more about reflecting in and the something getting leaders bit brand, and the new, strategic customers? opinion This our How little about me know, the and and we marketing here. As big This not campaigns.

so a we first product, be announced, in Next front would got and really is year, store of then that a Beverly have And couple our step will here customers brand can experience -- people like people of open a got which in fourth experience our product. flagship a just recently, the in this cars touch the we we one point quarter where Hills, but this of events. production-intent on in

call indication say let's leads this interest. to what of all So we

basically to I just year. is this interested do the we card. we next is give the in really And into which the their like business And to this these is we convert preorders, preorders of preorders right in. step, company, in and interest is if said, orders then directly the down Then they indications reflect paid step of we you $X,XXX, this production, in last the the disclose they needs So $X,XXX. are what XXX get what part webpage, intent people sales funnel us, up for have sign come payment now,

more competitors price it now, weeks this of about into the just couple it we not right a points though takes of before comes and disclosing strategy, pricing detailed are know, are launch say, the to as absolute numbers. interest into announced what the see you preorders where going not a we to a it's so how much produce of information When product we market, lot are of So, because It's always about other you competitive let's account. the already.

expectations? talk volume just XX you FF could And about

between XXXX, And during XXXX, build XXXX, units. So as to something production up going expect and full up. couple ramp we we said of it's in year's units we a just hundred X,XXX X,XXX ramp are in to our so

Your Credit Suisse. from Trevor next comes with Young question

first about to going was liquidity. I ask

of You're noted, financing. what now Wanted how You mentioned additional counterparties of your at of you made line was gotten feedback progressing. end And additional at then potential looking $XXX the needing cash was sort to funding? towards million your you've XQ. And securing you've that filings? sight of see talking that from about

you slowed believe ramp been funds dramatically. Thank part the on cash for up never have but our that of that has parts we filings have to clearly fundraising. raising Realizing faster again SOP question. additional our our fully We but we're it always now to down to And plans. date, stops, reach up we sufficient moving

of needs production our and change cash speed over time Our ramp. the with

our current beyond, our always FF move will plans, needs expectation. substantially this have ramp and as but and we funding funding rise the was We to the place XX in cover with further

where XX, you of FF April a XX. carry I the the of And XX supply release then stood around to general the well, the adding the of noticed the some guess for supplier FF about out a FF kind how beyond? I end supplier brake put XX? to FF as next these relates the see to just and question, in in chain readiness Also might wanted of then for And over terms relationships also but

supply of is you Yes, most thing. course as important chain, said, the

but to the care from build how at from production take right standpoint we the not to need the parts have low much a We right course challenge so The and cars. logistics, quality is production or a right volume have the we time. of

or up. last the pressure Now as pretty you material is prices much supply going raw chain year general are know in Material over or months -- under so.

you hear there from challenges. companies this is definitely EV logistics recall going and good volume up, the may So, our is, our many But case, small. cost that is quite that are in thing

of So couple here, about thousand of cars couple a couple talking we and a year. -- a hundred are hundred cars of next

a so we of relationship suppliers day much with are It's transaction. all But So with perspective, a get these maintain always on a communicate on parts. just basis. a is much to where so concentrating day Recall not to it's from them extremely you our to not suppliers challenge a relationship have course building volume with them. really and of relationship

have the from people, experienced need. we our all BMW, all and from colleagues which will I comfortable networks that right feel here, we quality get brought I we parts a worldwide, good quite We the -- team very get and great have

Rosner Bank. Your with from next question comes Deutsche Emmanuel

like how looking much start to feel and that of up, Are and accomplish full question raise and ramp you're I what to to need of with on you to dimension much you you're sort liquidity, how the able Just you if into? another options sort cash looking may.

Delivery same and we But part need on This the launch cash Mile with FF will parts. the of Smart as our as it towards all and already our and at we business planned, we've expected XX quickly XX, to additional need move receiving noted, to for has been the completion construction that our of always raise spending paying ramps the production build launch, and up vehicle. Last plan. always we And don't we've capital and the time. As

different us raise allows to options, at at and that amounts, So a times. of range look different capital

opportunistic. Given got to market got to be and we've flexible, we've conditions, the be

from asset-based equity. at looking financing Non-dilutive to range we're to to full a of options. converts now dilutive, So everything

look and every at the shareholders. best the to cost make the have in risks for We against category, then decision our

Okay.

reported but a half do the of of quarter? a to the it, like asking use just through a cash hit maybe a bit pace the cash so million going looks free right from and -- sort know differently, that quarter the $XXX just still this which expect first obviously currently. little Q Because how flow so, have of I you or evolve was be what -- of I'm you cash now I it burn Sorry, for don't would like --

going is or So -- start deeper here it is are from you production? get closer as to actually the improving burn of

reach current of to plans we XX SOP raising So our believe I corrected I the was slowed and into that. and not was up then pace fundraising. cash we've ramp to It but think filings our described, we go always sufficient have down additional production our fully to were that now part FF accelerating and on by funds the fact are we

I maybe this partner? I for the How And advantages this your about choice guess partner specific settle that for you are brings? geography, Why this talk then, what FF of location manufacturing? in can the you did XX? guess

better to understand, me strategy. let to maybe summarize our manufacturing see first Yes,

to hybrid you to want and One conflicting understand to as because targets this because manufacture, and your call is be important cost, we able a So to manufacturing are strategy they then deliver -- these two very things. own all quality, it's there process to definitely come.

process. understand you have So your to

Hanford here On learn the very invest manufacturing this by ramp intensive. plant our would the California for scale the and looking be we into billions We own to for dollars operated capital capital partner contract this the lease XX here. and do a we were And to process it We We is process. production the production in why technology about this XX, own. into FF up the because right invest we product, to other now. hand, and sites we need our don't of want

Korea, contract Shin, partner of couple So potential one is in Number one the we Myoung advantages. the has big the course big manufacturers and South found do investments. deal a two we will -- of this to talked our

we from. quite have a good of is needed Well, world the very South from and site, asset-light countries Koreans, And very in friends don't economies from countries So the the which great world. our to place tariffs other with perspective. very, you see South in our are Korea pre-investment is no they and with compared at parts low many most to are all with the tariffs other export

So the it's a great place to who all export from, is and to bearing investments. partner upfront

comes Your Benchmark. Ward with Michael next question from

if wonder as bit as I a milestones far with what can about your can you we talk track little these production.

reached will a what's And have what would be production. then many -- it more to us be of sort you're start validation till do you to step? going the that? next So levels see produce? milestone that How be some we Would get just okay X there to and we

supplier. the it, in plant the from saw and so challenging, which before, this all at the the you your have and achieve, units. around So have just the can and announced different start milestone foundations to supply which for you different this we I you of and and supply know, production electric put into way achievement of to basically put it, and the your the number all it's be equipment is we to so power as -- a implementation energy X milestones prepare don't announced works we logistics is preconfigured the you the basically, And X, plant machinery

comes body our Minhou China. shop example, from in For

connect business tested put just So And is and completely and to it and and was your delivered. trials. then installed it can place it in it you start to energy

this about little bit at to in now, milestone and it to it's a and sounds real see the started maybe It's just start invite one this any you see then the would [pre-service] It to put very our and plant the talk car and place so the and electric be reached to to everybody supply, come And one and we we equipment that time, the real progress. production. next of theoretical. I easier it. a Hanford is

Is kind is that thinking is what And XX one. of you're of? job

Correct.

plant. capacity So low [GPH], volume X XX,XXX invested to a Hanford units year. is maximum a -- It's X,XXX

Right. year. a XX,XXX

Okay. shift how Or And size, is? what that one it? know -- is do don't plant two that Is I shifts? is that how you or gauge that that

we now, planned course one this shift operations, for right, can scale first. It's but of

Right.

Okay.

about this production, can little manage production ramp, place people Hanford? of eventually to manage process, to in the put and in Now, you bit you've start the then a the talk of acceleration

Yes. you production it in a do car It's like environment.

Tall So experienced we who's have VP, leading plant. the very Matt

So start is the make to low with speed relatively a very say low volume, place. relatively that you let's process sure in

You have quality controls at on every single vehicle the beginning.

your the of issue, then step. once better you learn, do is hundred is into and only with implement quality. about the necessary you produce talking process year. And rework your cars if stable, up And necessary scale the and it I'm ramp relatively it reason quality can a ramp why it why to You every single you gets step a by This couple the slow, up. process is

in process that Hofmann? doing the is this management what Mathias background? And Is

Yes.

Mathias supply quality. responsible have who is Hofmann for chain the We

quality, one levels chain of build want two and right if cars. need is One you that quality the the you is the build. And quality. supply parts of right to So the you the get quality other

the trades. responsible who's our running organization responsible of which is quality the And build. Mathias and in quality quality here, a and Matt measures against is there's for the chain supply controls place So quality for plant the the Tall, then

Matt Okay. background? What Tall’s is

Rivian was He guy manufacturing AMG well. plant. before think I GM’s as a with and He's with

concludes and Ladies we end the reached And have today's gentlemen, session. this conference. of the question-and-answer

Thank this at all you your for lines your disconnect may participation. time. You