Faraday Future Announces Fiscal Fourth Quarter and Full Year 2023 Financial Results

The company has transformed its business into production and revenue generation phase with FF 91 2.0 EV in 2023.
Achievement of revenue for 2023 and reduction of operating loss and cash used in operating activities, while improving balance sheet composition compared to FY 2022.
Company Committed to increasing production and deliveries while maintaining financial discipline.
Continues to seek additional significant strategic investors to drive future growth.

LOS ANGELES, May 28, 2024–(BUSINESS WIRE)–Faraday Future Intelligent Electric Inc. (Nasdaq: FFIE) (“FF”, “Faraday Future” or “Company”), a global shared intelligent electric mobility ecosystem company based in California, has today announced its financial results for its fourth quarter and fiscal year ended December 31, 2023.

RESULTS FOR THE FOURTH QUARTER 2023 AND THE YEAR 2023

For the 2023 financial year, FF achieved its first year of revenues as well as a reduction in operating loss and cash used in operating activities, while improving the composition of its balance sheet, compared to the fiscal year 2022. These results were achieved through significant cost reductions and cost discipline.

FF reported 2023 revenue of $0.8 million and cost of goods sold of $43 million, compared to no revenue or cost of goods sold in 2022. This reflects the fact that the The company only started delivering vehicles in the third quarter of 2023. The operating loss was $286 million. for 2023, compared to an operating loss of $437 million for 2022. The variation is due to a significant reduction in operating expenses which recorded $244 million in 2023 compared to $437 million in 2022. Improved operating expenses for the year was primarily due to lower research and development expenses as the Company completed product development and transitioned to achieving sales through manufacturing and production. The net loss improved to $432 million for 2023 from $602 million for 2022.

Total assets as of December 31, 2023 were $531 million, compared to $529 million as of December 31, 2022. Total liabilities were $302 million, compared to $328 million as of December 31 2022.

Net cash used in operating activities for 2023 was $278 million, compared to $383 million in 2022. Capital expenditures were $31 million for 2023, compared to $123 million for 2022.

The cash balance as of December 31, 2023 was $4 million, including restricted cash of $2 million. This compares to cash of $17 million as of December 31, 2022. As of May 23, 2024, the Company’s cash position was approximately $5 million, which includes restricted cash of $2 million.

To support its future growth, the Company continues to seek additional significant strategic investors to support its future growth. It is also considering financing backed by equipment and intellectual property to potentially reduce its reliance on dilutive financing. The Company does not plan to issue additional shares unless and until it receives shareholder approval to increase the total number of authorized shares.

“2023 was a pivotal year for FF. We have moved into a growth phase focused on production and revenue generation, establishing FF’s position in the ultra-luxury, high-performance electric vehicle market,” said Matthias Aydt, Global CEO of Faraday Future. “Looking ahead, I am excited about the future as we remain committed in our pursuit of growth through efficiencies and the new markets we entered in 2023. We remain committed to increasing both the strength of our products and the value for our shareholders.

COMPANY HIGHLIGHTS IN 2023

FF launched a leasing program with Luxury Lease Partners, obtained a license from the Bureau of Automotive Repair, activated a home charging installation program and deployed a public charging program. These initiatives are designed to provide our users with a seamless, customer-focused experience.

The company also announced a potential entry into the Middle East market late last year. This included strategic cooperation agreements with Master Investment Group and Siraj Holding LLC. Entry into the Middle East would add a third step to the Company’s geographic strategy which includes the United States and China.

FF has also agreed to a collaboration with the Abu Dhabi Investment Office (ADIO) to bring generative AI and advanced smart electric vehicle capabilities to the Arab Emirates’ Intelligent and Autonomous Vehicle Industry (SAVI) cluster United.

OUTLOOK

Given current market conditions and current funding levels, the Company is withdrawing its 2024 production targets.

INCOME WEBCASTING

Faraday Future management will host a webcast today, May 28, 2024, at 8:00 p.m. Eastern Time (5:00 p.m. Pacific Time). Interested investors and other parties may listen to a webcast of the conference call by logging into the Investor Relations section of the Company’s website at https://investors.ff.com/.

ABOUT FARADAY FUTURE

FF is the pioneer of the Ultimate Intelligent TechLuxury ultra-spinning market in the era of intelligent electric vehicles and a disruptor of the traditional ultra-luxury car civilization. FF is not only an electric vehicle company, but also an intelligent Internet AI product software company.

FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates”, “projected” », “expects”, “anticipates”, “forecasts”, “plans”, “intends”, “believes”, “seeks”, “may”, “will”, “should”, “ future”, “proposes” and variations of these or similar words. expressions (or negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements, which include statements regarding the Company’s planned financings, growth strategy in the United States, China and the Middle East, and the Company’s leasing program, are not guarantees of performance , future conditions or results and involve a number of known factors. and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the Company’s control, that could cause actual results to differ materially from those discussed in the forward-looking statements.

Important factors, among others, that may affect actual results or results include, among others: the Company’s ability to continue as a going concern and improve its liquidity and financial condition; the Company’s ability to pay its outstanding obligations; the Company’s ability to address its material weaknesses in internal control over financial reporting and risks related to the restatement of previously issued consolidated financial statements; the Company’s limited operating history and the significant obstacles to growth it faces; the Company’s loss history and expectations of continued losses; the success of the Company’s payroll cost reduction plan; the Company’s ability to execute its vehicle development and marketing plans and the timing of these development programs; the Company’s estimates regarding the size of the markets for its vehicles and the cost of bringing these vehicles to market; the rate and degree of market acceptance of the Company’s vehicles; the Company’s ability to cover future warrant claims; the success of other competing manufacturers; the performance and safety of the Company’s vehicles; current and potential litigation involving the Company; the ability of the Company to receive funds, satisfy the conditions precedent and close the various financings described elsewhere by the Company; the result of future financing efforts, the failure of which could cause the Company to seek protection under the Bankruptcy Code; the Company’s debt; the Company’s ability to cover future warranty claims; the Company’s ability to use its “at market” program; insurance cover; general economic and market conditions impacting demand for the Company’s products; the potential negative impacts of a share consolidation; Potential actions to reduce costs, headcount and salaries may not be sufficient or may not achieve the expected results; circumstances beyond the Company’s control, such as natural disasters, climate change, health epidemics and pandemics, terrorist attacks and civil unrest; risks related to the Company’s operations in China; the success of the corrective actions taken by the Company in response to the findings of the special committee; the Company’s dependence on its suppliers and contract manufacturer; the Company’s ability to develop and protect its technologies; the Company’s ability to protect itself against cybersecurity risks; and the Company’s ability to attract and retain employees, any adverse developments in pending legal proceedings or the initiation of new legal proceedings, and the volatility of the Company’s stock price. You should carefully consider the above factors and other risks and uncertainties described in the “Risk Factors” section of the Company’s Form 10-K filed with the Securities and Exchange Commission (“SEC”) on May 28, 2024 and in other documents filed by the Company from time to time with the SEC. Investors (English): [email protected]

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Contacts

Investors (Chinese): [email protected]

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