Faraday Future Intelligent Electric Inc (FFAI) 2024 Q2 法說會逐字稿

Greetings, and welcome to Faraday Future Intelligent Electric, Inc. second-quarter 2024 earnings call. (Operator Instructions) Please note this conference is being recorded.

您好，歡迎參加法拉第未來智慧電氣公司 2024 年第二季財報電話會議。（操作員說明）請注意，本次會議正在錄製中。

I will now turn the conference over to Jonathan Maroko, CFO. Thank you. You may begin.

我現在將會議交給財務長 Jonathan Maroko。謝謝。你可以開始了。

Welcome, everyone, to Faraday Future second-quarter 2024 earnings call. My name is Jonathan Maroko, and I serve as Faraday futures Interim CFO. Joining me on the call today is our Global Chief Executive Officer, Matthias Aydt.

歡迎大家參加法拉第未來 2024 年第二季財報電話會議。我叫喬納森‧馬羅科 (Jonathan Maroko)，擔任法拉第期貨臨時財務長。今天與我一起參加電話會議的是我們的全球執行長 Matthias Aydt。

I will be sharing details from today's press release, reporting our second-quarter 2024 results. That press release can be found in the Investor Relations section of our website. The replay of this call will also be posted there later today.

我將分享今天新聞稿的詳細信息，報告我們 2024 年第二季的業績。新聞稿可以在我們網站的投資者關係部分找到。該電話會議的重播也將於今天晚些時候發布。

Please note that on this call, we will be making forward-looking statements based on current expectations and assumptions, which are subject to risks and uncertainties. These statements reflect our views only as of today and should not be relied upon as representative of views as of any subsequent date, and we undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events.

請注意，在本次電話會議中，我們將根據目前的預期和假設做出前瞻性陳述，這些預期和假設存在風險和不確定性。這些陳述僅反映我們今天的觀點，不應被視為任何後續日期的觀點代表，我們沒有義務根據新的情況修改或公開發布對這些前瞻性陳述的任何修改的結果。

These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from expectations. For further discussion of the material risks and other important factors that could affect our financial results, please refer to our filings with the SEC.

這些陳述受到各種風險和不確定性的影響，可能導致實際結果與預期有重大差異。有關可能影響我們財務表現的重大風險和其他重要因素的進一步討論，請參閱我們向 SEC 提交的文件。

With that, I'll turn the call over to Faraday Future's Global CEO, Matthias Aydt.

接下來，我會將電話轉給法拉第未來全球執行長馬蒂亞斯‧艾德特 (Matthias Aydt)。

Thank you, Jonathan, and thank you, everyone, for joining our earnings call. I'm excited to share with you an update on our progress at Faraday Future, highlighting key milestones we achieved in our second quarter of 2024 and our strategic initiatives to continue moving forward.

謝謝喬納森，也謝謝大家參加我們的財報電話會議。我很高興與您分享法拉第未來的最新進展，重點介紹我們在 2024 年第二季度實現的關鍵里程碑以及我們繼續前進的戰略舉措。

The start of 2024 marked a transformative period for the company. Our new China-US automotive Bridge Strategy positions us to leverage our cutting-edge AI and software technology across multiple market segments, potentially accelerating our mass market entry while maintaining our ultra-luxury offering. As we move forward, we remain focused on executing our global strategy and bring our unique vision of intelligent electric mobility to a broader audience.

2024 年伊始標誌著公司的轉型期。我們新的中美汽車橋樑策略使我們能夠在多個細分市場中利用我們的尖端人工智慧和軟體技術，有可能加速我們進入大眾市場的速度，同時保持我們的超豪華產品。在我們前進的過程中，我們將繼續專注於執行我們的全球策略，並將我們對智慧電動車的獨特願景帶給更廣泛的受眾。

In addition, we recently held our first Investor Community Day to highlight our technology, our team, and the developments that underscore our commitment to innovation, sustainable growth, and demonstrate our commitment to stockholder value. The Investor Community Day provided the opportunity to experience the FF 91 firsthand. FF executives spent the day showcasing the company's core values and marketplace advantages.

此外，我們最近舉辦了首屆投資者社群日，以突顯我們的技術、團隊和發展，強調我們對創新、永續成長的承諾，並展示我們對股東價值的承諾。投資者社區日提供了親身體驗 FF 91 的機會。FF 主管花了一天的時間展示了公司的核心價值和市場優勢。

The event that highlighted FF's unique product power, transformative technology, brand strength, and innovative user ecosystem. FF has unveiled its innovative China-US automotive Bridge Strategy, marking a return to a two-brand approach. As part of its dual-home market strategy, FF expects to leverage its unique bridge value you to integrate the strengths of the US automotive industry with those of Chinese car companies and their respective supply chains. This strategy aims to establish a second mass-market-focused brand by collaborating with China-based OEMs and parts suppliers, focusing the 20,000 to 80,000 price segment below the FF brand.

這項活動凸顯了 FF 獨特的產品力、變革性技術、品牌實力和創新的用戶生態系統。FF公佈創新的中美汽車橋樑策略，標誌著FF回歸雙品牌模式。作為雙歸屬市場策略的一部分，FF希望利用其獨特的橋樑價值，將美國汽車工業與中國汽車企業及其各自供應鏈的優勢整合起來。該策略旨在透過與中國整車廠和零件供應商合作，建立第二個面向大眾市場的品牌，並專注於FF品牌以下2萬至8萬的價格區間。

FF pledged to enhance procured components with its proprietary, AI and vehicle software technology with contribution of mechanical platform and supply chain. Purchases collaboration from China automotive industry created a compelling value proposition for the AI-EV mass market.

FF承諾透過其專有的人工智慧和車輛軟體技術以及機械平台和供應鏈的貢獻來增強採購的零件。來自中國汽車產業的採購合作為人工智慧-電動汽車大眾市場創造了引人注目的價值主張。

Our FFIE factory enables full production capabilities, a solid foundation for the future collaboration with other OEMs by adjusting certain product lines. Additional products could be integrated in the FFIE factory network. The company continues to seek strategic financing. If strategic investments are secured, this could allow for a ramp in production and additional deliveries of the FF 91. Furthermore, incremental funding could support the development of the China-US automotive Bridge Strategy and progress our entry into the Middle East.

我們的FFIE工廠具備完整的生產能力，為未來透過調整某些產品線與其他主機廠的合作奠定了堅實的基礎。其他產品可以整合到 FFIE 工廠網路中。公司繼續尋求策略融資。如果策略投資得到落實，FF 91 的產量和交付量可能會增加。此外，增量資金可以支持中美汽車橋策略的發展，並推動我們進入中東。

FF also keep working to optimize operations to support sustainability. This includes ongoing evaluations of our current cost reductions and spending efficiencies, including daily operations and FF 91 material. Upon filing the Form 10-Q for the period ending June 30, 2024, the company continues to be compliant with NASDAQ on its timely reporting requirements. Hence, the only compliance requirement to be listed on NASDAQ is the minimum bid price before August 31, 2024.

FF 也不斷努力優化營運以支持永續發展。這包括對我們目前的成本削減和支出效率進行持續評估，包括日常營運和 FF 91 材料。在提交截至 2024 年 6 月 30 日期間的 10-Q 表格後，該公司繼續遵守納斯達克的及時報告要求。因此，在納斯達克上市的唯一合規要求是2024年8月31日之前的最低出價。

Through negotiations with existing investors on August 2, 2024, the company successfully refined the terms of the previously signed a share purchase agreement related to convertible notes financing. Originally, the company could have been required to repay the principal and interest in cash upon the notes maturity. Following the agreement adjustments, most of the cash repayment obligations have been modified to share issuance obligations, and the cash interest expenses will be significantly reduced. This agreement will help reduce cash pressure and should be conducive to subsequent financing efforts.

本公司於2024年8月2日透過與現有投資者的談判，成功細化了先前簽署的可轉債融資相關的股份購買協議的條款。原本，公司可能需要在票據到期時以現金償還本金和利息。協議調整後，大部分現金償還義務修改為股票發行義務，現金利息支出將大幅減少。該協議將有助於減輕現金壓力，並應有利於後續融資工作。

FF's operational initiatives in 2024 also continue to progress. The primary focus is the production and delivery of vehicles, and we are happy we have delivered two more FF 91 2.0 EVs since June, with plans to deliver more throughout the remainder of this year. This marks the resumption of the start of delivery second phase, SOD2, that began last year. To date, we have delivered 13 vehicles to our valuable users.

FF 2024 年的營運措施也持續取得進展。主要重點是車輛的生產和交付，我們很高興自 6 月以來又交付了兩輛 FF 91 2.0 電動車，並計劃在今年剩餘時間內交付更多。這標誌著去年開始的第二階段 SOD2 交付開始的恢復。迄今為止，我們已向有價值的用戶交付了 13 輛汽車。

Product is king. We must continuously enhance the product and technology powers of the FF 91 2.0 to maintain FF's leading product and technology powers focusing on the application research and development of AI technology, including the vertical application of generated AI in the mobility field. Starting in Q2 period, we have begun to produce the vehicle body and some interior components in-house leading to significant cost reductions in these areas.

產品為王。我們要持續提升FF 91 2.0的產品與技術實力，維持FF領先的產品與技術實力，專注於AI技術的應用研發，包括生成AI在出行領域的垂直應用。從第二季開始，我們開始自行生產車身和一些內裝零件，從而顯著降低了這些領域的成本。

Specifically, the cost of interior parts has been cut by more than half. despite facing substantial financial challenges this year, our supply chain successfully resumed SOD2 in June. Our production and quality control systems are also steadily maturing.

具體來說，內裝件的成本降低了一半以上。儘管今年面臨巨大的財務挑戰，我們的供應鏈仍在 6 月成功恢復 SOD2。我們的生產和品質控制系統也在穩步成熟。

At the start of the second quarter, we established a Middle Eastern sales entity in Dubai, signifying an important milestone in the company's expansion plans. With the entry into the Middle East, FF can look to implement a third-pole geographic strategy that includes the US and China markets that are known for their strong appetite for cutting-edge high-end products.

第二季初，我們在杜拜設立了中東銷售實體，這標誌著公司擴張計畫的一個重要里程碑。隨著進入中東，FF 可以考慮實施第三極地理策略，其中包括以對尖端高端產品強烈需求而聞名的美國和中國市場。

The milestone built on FF's Middle East strategy, it unveiled with the introduction of the FF brand in the region in 2023. Besides the activities to establish FF in UAE, the company continues to engage with potential partners in the Middle East to explore opportunities, including strategic financing, business development, and sales and marketing.

這一里程碑建立在 FF 中東戰略的基礎上，隨著 FF 品牌於 2023 年在該地區的推出而拉開序幕。除了在阿聯酋建立 FF 的活動外，該公司還繼續與中東的潛在合作夥伴合作，探索機會，包括策略融資、業務開發以及銷售和行銷。

Jonathan will now provide us with an overview of our financials. He will also cover our fundraising efforts and detail the measures we have implemented to reduce costs and strengthen Faraday Future's financial position.

喬納森現在將為我們提供我們的財務狀況概覽。他還將介紹我們的籌款工作，並詳細介紹我們為降低成本和加強法拉第未來的財務狀況所採取的措施。

Now without further ado, I would like to turn the call over to Jonathan?

現在，閒話少說，我想把電話轉給喬納森？

Thank you, Matthias. I'll first summarize our financial results for second quarter 2024, then discuss our financing activity over this period and close with an overview as to where the company is today financially.

謝謝你，馬蒂亞斯。我將首先總結我們 2024 年第二季的財務業績，然後討論我們在此期間的融資活動，最後概述公司目前的財務狀況。

The company continued its efforts to control costs and reduce operating expenses. Operating expenses improved significantly to $29.9 million compared to $49.4 million in the prior-year quarter. Loss from operations also improved to $50.6 million compared to a loss of $56.0 million in the prior-year quarter.

公司繼續努力控製成本，降低營運費用。營運支出顯著改善，從去年同期的 4,940 萬美元增至 2,990 萬美元。營運虧損也從去年同期的虧損 5,600 萬美元減少至 5,060 萬美元。

In the six months ended June 30, 2024, cash from operating activities improved meaningfully to a $29.1 million outflow compared to an outflow of $160.7 million in the six months ended June 30, 2023. The company had $457.9 million of assets, $209.2 million of liabilities, and a book value of $148.7 million at quarter-end June 30, 2024. These results represent major cost reductions and cost discipline, and we expect continued cost reductions compared to the year-over-year periods through the rest of 2024.

截至 2024 年 6 月 30 日的六個月，經營活動產生的現金顯著改善，流出額為 2,910 萬美元，而截至 2023 年 6 月 30 日止的六個月流出額為 1.607 億美元。截至 2024 年 6 月 30 日季末，該公司的資產為 4.579 億美元，負債為 2.092 億美元，帳面價值為 1.487 億美元。這些結果代表了成本的大幅降低和成本控制，我們預計到 2024 年剩餘時間，與去年同期相比，成本將持續降低。

The next step is to increase our vehicle production and delivery levels. As for financing activities for Q2 2024, we successfully raised approximately $15.5 million of gross financing through convertible debt. Throughout our challenging cash flow period, the company has demonstrated capacity to cut costs and manage cash flow. Cost reductions implemented across the board have been painful but necessary. We have rightsized our operational footprint and workforce based on the current operational requirements and funding situation.

下一步是提高我們的車輛生產和交付水準。至於 2024 年第二季的融資活動，我們透過可轉換債務成功籌集了約 1,550 萬美元的融資總額。在現金流充滿挑戰的時期，該公司展現了削減成本和管理現金流的能力。全面實施成本削減是痛苦的，但卻是必要的。我們根據目前的營運要求和資金狀況調整了我們的營運規模和員工隊伍。

We continue to believe our biggest barrier to vehicle sales and profitability is the capital required to produce vehicles at scale. Given our lean cost structure, each new dollar invested in Faraday Future can be utilized in a very efficient manner.

我們仍然認為，我們汽車銷售和獲利能力的最大障礙是大規模生產汽車所需的資本。鑑於我們精益的成本結構，投資法拉第未來的每一美元都可以以非常有效的方式利用。

With that, I will hand it back to Matthias.

說完，我會把它交還給馬蒂亞斯。

Thank you, Jonathan. Let me give you a look ahead. Our main focus remains on stabilizing and strengthening our operation. Key is achieving profitability and independents in the shortest possible time. To be able to achieve a higher market penetration in future, we are exploring multiple avenues. For FF, the US-China automotive industries bridge is envisioned to be a light-asset, fast-paced, high-value model. FF could provide most of the major technology systems and technology platforms which serve as the intelligence sold at a neural network of the car.

謝謝你，喬納森。讓我給你展望。我們的主要重點仍然是穩定和加強我們的營運。關鍵是在盡可能短的時間內實現盈利和獨立。為了能夠在未來實現更高的市場滲透率，我們正在探索多種途徑。對FF來說，中美汽車產業橋樑被設想為輕資產、快節奏、高價值的模式。FF可以提供大部分主要技術系統和技術平台，作為汽車神經網路銷售的智慧。

Looking forward, I'm filled with excitement for the path that lies ahead. We remain steadfast in our pursuit of growth through efficiency and are dedicated to elevating stockholder value. The journey ahead promises significant opportunities and with our talented team at the helm, I am confident in our ability to achieve and exceed our objectives.

展望未來，我對前方的道路充滿興奮。我們堅定不移地追求透過效率實現成長，並致力於提升股東價值。未來的旅程充滿了重大機遇，在我們才華橫溢的團隊的領導下，我對我們實現並超越目標的能力充滿信心。

We continue to believe the FF 91 is unlike anything on the road today. We look forward to the potential for ongoing production in 2024 to help the rest of the world come to the same realization. FF appreciates the trust shown by investors, and would like to thank them for their loyal and ongoing support. Thank you for your time and interest in Faraday Future, and I look forward to providing you with further updates as significant events unfold.

我們仍然相信 FF 91 與當今道路上的任何車輛都不一樣。我們期待 2024 年持續生產的潛力，以幫助世界其他地區實現相同的目標。FF 感謝投資者的信任，並感謝他們的忠誠和持續支持。感謝您花時間關注法拉第未來，我期待在重大事件發生時為您提供進一步的更新。

Thank you. This will conclude today's conference. You may disconnect your lines at this time, and thank you for your participation.

謝謝。今天的會議到此結束。此時您可以斷開線路，感謝您的參與。