Faraday Future Intelligent Electric (FFIE) 14 Nov 232023 Q3 Earnings call transcript

Greetings, and welcome to Faraday Future Intelligent Electric Third Quarter 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.It is now my pleasure to introduce your host, Jonathan Maroko, the CFO. Thank you, Jonathan.

You may begin.

Thank you, and welcome, everyone, to Faraday Future's Third Quarter 2023 Earnings Call. XXXX.Joining letter Form results quarter Chief XX-Q this November shareholder quarterly filed of Executive a Faraday Chief afternoon, on from Financial and report for XX, Maroko, Officer, issued Matthias reporting our myself, and our our XXXX Future Aydt We is call Jonathan Global Interim the the third Officer.

Except of of this our letter now Investor replay of call You that today this to these as by in update or views shareholder of Relations at required on undertake can and website statements obligation XXXX of call or implied. section light date. XXXX, find investors.ff.com.Please results making views of forward-looking to the results expressed subsequent forward-looking statements materially any on be based any to those as new note subject only management the QX cause from no statements could uncertainties as of to revision should a information of statements the our later and and assumptions. publicly events.These differ copy actual on revise, we or we will are upon reflect XX, law, representative and that be current relied expectations November risks release not as a a of future variety These

XX-Q.In through will the investors' English. statements of could quarterly remarks In today's and Matthias All that, discrepancy, the factors provide XXXX XX-KA I their latest For of results, will to ff.com. our the only. in risks call, with quarters on the English and call further translator Global reports accessed case translations management Form material discussion turn Factors filings during translation affect Form for which answers prepared second the to including SEC, will give and our financial can provided will Aydt, our convenience Future. that CEO section the report are questions other on important prevail.With be of in for and to simultaneous refer our Chinese titled annual addition, in any our A third over team of please management's Risk Faraday

and you, joining day, for everyone, and good conference call. you our thank Thank Jonathan,

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Thank you, Matthias.

third of I financial our results XXXX. First, summarize to like for the quarter would

it major One our revenue. of that was quarter of accomplishments generating quarter of first was the this

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compared convertible million the cash reduced In expenses by for million operating XX, to activities Net as of on expenditures significantly September ended in million recorded provided balance cash at-the-market addition, XXXX, was XX, on financing compared months September in ended $XXX.X million X ended Capital value X the ended on months million September quarter payable financing million operating and X in $XXX.X million was XXXX, September $XXX.X was million by was XXXX. XXXX. $XXX.X as September months during notes, this for X XX, months the activities of the liabilities were XXXX, primarily XX, the the versus XX, $XXX.X raised due year.Turning $XX to we million.On XXXX. and for Cash of September million for September our X of warrant on $XXX.X net were gain of through million notes Total XXXX, net were December used September December the loss settlement the XXXX. XX, convertible ended The change a in a the to X compared September $X.X loss a for the net fair cash line months $XX.X used our third liabilities, XX, Net sheet. XXXX, for XXXX. months the of $XX.X the funding to side, change lowered XX, in compared million quarter, of for $XX.X XX, activities financings. third XX, months Total and equity million XXXX. assets to net noncash to we $XXX.X loss ended combination ended offset notes to XX, X $XXX.X credit

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is the partnering delays.Jonathan some ahead. We interested opportunities some The factory the team financing, actively we are line of our the is the looking but sight who on ramp to production. and are are liquidity, additional ready all us by to are secure excited with we not we up for and working a are opportunities supply to more, causing which limited in bottleneck produce and from term. investments have for investors And good potential also lastly, longer is

Our Dhabi upcoming more Abu Grand questions. the coming with to Prix months.Operator, the alongside with events X look the Formula public forward to in ready in we are and sharing take

[Operator from Benchmark. Our Instructions] with Ward Michael first is question

off, Page wanted on Jonathan, some of just I the of clarify first to handout, financing. timing the the XX of

assume think of that XX, common issued. was I after XX the it mentioned of closed A I quarter. million the Class September stock end

That's correct.

Okay.

on right? So million the on is what XX.X ] Page Q share I [ X, count new from the that's can read

correct. That's

Okay.

the if deliveries. was in revenue that or X Second year-to-date? if the mentioned I was I that thing, just QX clarify wonder number. letter, And And was were you how many in QX curious you in can

Sure.

So I QX misspoke, there in QX, in X, were... think you

sorry, I'm QX.

X. And sure. there cumulative, Sure, were

correct. that's So

Okay.

Okay.

to What has of get you is I'm landscape, XX years. and can that look get Now specifically when Tesla eventually to the units back you confidence next you virtually I go targets, what that even think X,XXX XX,XXX? capacity curious to back is closer Faraday when about meet the every then last BEV over doing production struggled year I at gives manufacturer

answered you I I to repeat can before I just And had ATM, the answer the on correctly. you question want it Mike, sure make that,

Which one?

Regarding ATM. the

ATM September A of end see up XX, million it sell XX, to infusion? sell cash quarter? did are after to Slide stock stock. Class On XX that on said entered the to and common you into you Yes. Did So close offer it the we going a the

Correct.

how in course, only So the XX-Q. much disclosed partial, first off, of we

Okay.

-- to program. more Aydt that question, I'll your on handle go plenty for have Matthias in and still that XQ of that. -- The We bulk as let so occurred

the we at look capacity you you if installed per have up first have plant set vehicles then we think to what the into that one year. production, for is and achieve this finally other units for I X,XXX Michael, the our as the has maturity according which full to of on allows a level which if with hand, with hand, XX,XXX liquidity ramp year up the of XX%, getting operations, well. And to, Yes, right the us compare necessary the of only product company on

So years to journey on we on base with this to within for ramp-up preparing are that XX,XXX settled. has units focusing And us the by per our we the ourselves.All volume. supply to year go not come coming are getting

achieve So next we year. issue foreseeing not volume vehicles an to are the production X,XXX this

figuring many out sales We distribution how are and the into to have still able the build-out in we vehicles to to as our we deliver process will network. of the market be look of

Okay. Faraday get And your to of your with to maybe, help Matthias, equation targets? you could those background provide a in the adds that the can little past what experiences to and and detail what

So the about brag really I'm person to myself. not

that So Jonathan. I'm over handing to

does Matthias Okay. quite bit more so and everyone of I'll understand color, brag some to a add that can take his and background. about, a have portion

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next Our Stephen from question Gengaro Stifel. is with

facility. glimpse of least producing, see to But you've to production good kind believe, you production? be and fortunate down bit with that's mass was Hanford helped batches what on. I to go a as to think first, do of was -- you need that what I in pretty But at to thus really get how capital equipment I to about able And been got maybe to start the could kind a to talk going far, as even far little you and ramp levels of capabilities. manufacturing I your

the think I put perspective. production into to need we mass

per are aiming said installed I units So XX,XXX we of year. for capacity an

achieve number our because in using middle lower year, us will step which by next capacity the we will shortened we installed are of the ] vehicle year, And We capacity. will still of assembly, [ up XX,XXX end our of is a a X a line X,XXX to are in in next we year's need ramp first give -- our for need line. the final X hour we of which the build in per year, closures body processes per to the units in jobs and we do, in steps shop in production fine-tuning shifts.What the paint

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inspection an established have base. outgoing inspection of our incoming supply the of top on We

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then helpful. Great. And that's as and more just Yes. relates to on it manufacturing very of one No, kind cost side. the

any can material about talking when costs, as we're you side? how far you optimize color as the So add particularly

the Finalizing back step go the optimization manufacturing cost let's first optimization. manufacturing the is first So to our gives reduction. us finalizing

easy to that overhead volume. at costs mentioned, low think extreme a this we I with as moment costs. we And have it's burden on Jonathan the imagine have

are into will region from a them go achieve the able delivering the our process ramping next soon we year cost to that process the car. more the this dollars have on material have be systems a on material we and and last supply and nice up also is of As bond cost next into insourcing the systems get run on to focus is, that to in need decrease next on to we going step plant stable, next together with the The And optimize looking then will through base. go X breakeven look process into getting coming to the as overall the been cost having step side. cost the very any volume.We been our number the to to with base most a capacity step together cost into coverage to there expensive we reasonable the this focusing be additional there we a without started for cost costs value years reductions have to by will And stream of MSRP. the reduce supply activity we

case, every in in not solution. cost-effective So result a we have design

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next Our [ from is Lee ] Bank. question with Laura Deutsche

you time. for your thank Well,

So my question about financing. be will

are little about like were I think you already talked considering? nonequity this, a you financing there but other bit

to certainly we're dilutive We Sure. least finance are, on the Yes. and the way ] [ to possible. company look continuing

tenant talks, in improvement, more to freeing are production. indirect capital And mentioned, was we as think been significantly, which of that sale to But our tenant XQ capital, IP-based This would and amount helpful a $X improvements one, property though XXXX help for an independent with about third meaningful valued of be that So was discussions Hanford, party potential we've in our scale the was sometime lenders. us on a up raise required these in last leaseback intellectual fund we to of based can by portfolio, XXXX. billion. we revaluation hopefully at subject

So we're on this. optimistic

Okay.

saw the So convertible I ones. stop the thinking about also, notes. new you issuing

current have plan do any restructure So notes? you to the convertible

moving away into Yes, certainly dilutive financing. Sure. from ties that

And so looking to whatever always these to converts. from move can doing existing away improve we're we We're financing options.

of these with either conversions. existing talks ones, in terms to In restructure to impact limit those the specific or we're

to closing at There hand further no questions I over the comments. floor are this time. back management like to for would any

I'd like to to raised come you we a back the question, year. to hit targeting are Michael, in regards in how volumes next of

on On the are Faraday. very a very I placing. setup, think situation focusing product one with with It's close market blue be are you is unique a a look our segment we we market which if unique. to into we ocean hand, are in

operation, are other if So we have potentially not are a facing the the chosen. and you competition And that operations, decided far as to as company, invest be generate volume have if in Lucid of profits. lot a the Rivian, to to can look chosen to play comes And they bigger coming point facing which is into business, of everywhere is basically and approach they enough size it you at a days the lot are look Lucid element, just are in into flow the have the to which cash making the Rivian the of is to small they cost. beginning execute about and need it's our very you months of the last breakeven.So to to deciding the fast year rest the we the get cover of money or last in

achieve McKinsey, out in the favorable There's a can years latest, forward situation that are other to you. very in like markets. year XXXX. and a beginning the of exactly in gives is let's over the very is this segment next say, lower which even one XXXX, comparison market on then from have covering So our look that based there breakeven. cost end far And positive that a XXXX through companies me of at in which is we growing we a volume, to next studies Thank

today's concludes This conference.

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