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

• The company has transformed the business into production and revenue generation with FF 91 2.0 EV in 2023.

• Realized revenue for 2023 and reduced operating loss, cash used in operating activities, while improving balance sheet composition compared to FY 2022.

• Company Committed to increasing production and deliveries, maintaining financial discipline.

• The search continues for significant additional 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 headquartered in California, today announced its financial results for its fourth quarter and fiscal year ending December 31, 2023.

RESULTS FOR THE FOURTH QUARTER OF 2023 AND THE FULL YEAR OF 2023

For FY 2023, FF produced its first year of revenue, as well as a reduction in operating losses and cash used in operating activities, while improving the composition of its balance sheet, compared to FY 2022. These results were achieved through major cost reductions and cost discipline.

FF reported revenue of $0.8 million in 2023 and cost of goods sold of $43 million, compared to no revenue and cost of goods sold in 2022. This reflects that the company only began delivering vehicles in the third quarter 2023. The operating loss was US$286 million. for 2023, compared to an operating loss of US$437 million in 2022. The change was due to a significant reduction in operating expenses which recorded US$244 million in 2023 compared to US$437 million in 2022. The improvement in expenses Operating expenses for the year were primarily due to lower research and development expenses as the Company completed product development and transitioned to sales fulfillment through manufacturing and production. Net loss improved to $432 million in 2023 compared to $602 million in 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. 2022.

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

The story continues

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

“2023 was a landmark year for FF. We transitioned into a growth phase that focuses on production and revenue generation, establishing FF’s position in the high-performance, ultra-luxury electric vehicle market,” said Matthias Aydt, Global CEO of Faraday Future. “Looking ahead, I am excited about the future as we remain steadfast in our pursuit of growth through efficiency and the new markets we enter in 2023. We remain dedicated to elevating the strength of our products and shareholder value. “

MAIN COMPANY HIGHLIGHTS DURING 2023

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

The Company also announced 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 stage to the Company’s geographic strategy, which includes the US 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 UAE’s Autonomous and Intelligent Vehicle Industry (SAVI) cluster.

PANORAMA

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

EARNINGS WEBCAST

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

ABOUT THE FUTURE FARADAY

FF is the pioneer of the Ultimate Intelligent TechLuxury ultra-pinnacle market in the smart EV era and a disruptor of the traditional ultra-luxury car civilization. FF is not only an EV company, but also a software-driven company of intelligent Internet AI products.

FORWARD-LOOKING STATEMENTS

This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates”, “projected “, “expects”, “anticipates”, “predicts”, “plans”, “intends”, “believes”, “seeks”, “may”, “will”, “should”, “future”, “propose” and Variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements, which include statements about the Company’s planned financings, growth strategy in the US, China and the Middle East, and the Company’s leasing program, are not guarantees of future performance, conditions or results and involve a number of information known. 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, but are not limited to: the Company’s ability to continue as a going concern and improve its liquidity and financial position; the Company’s ability to pay its outstanding obligations; the Company’s ability to remedy 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 barriers to growth it faces; the Company’s history of losses and expectation of continued losses; the success of the Company’s payroll expense reduction plan; the Company’s ability to execute its plans for the development and commercialization of its vehicles and the timing of these development programs; the Company’s estimates of the size of the markets for its vehicles and the cost of bringing those vehicles to market; the rate and degree of market acceptance of the Company’s vehicles; the Company’s ability to cover future warranty claims; the success of other competing manufacturers; the performance and safety of the Company’s vehicles; current and potential litigation involving the Company; the Company’s ability to receive funds, satisfy conditions precedent and close the various financings described elsewhere by the Company; the outcome of future financing efforts, the failure of which could result in the Company seeking 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 program “in the market”; Insurance coverage; general economic and market conditions that impact demand for the Company’s products; potential negative impacts of a reverse stock split; potential actions to reduce costs, number of employees and salaries may not be sufficient or may not achieve 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 Company’s corrective measures taken in response to the Special Committee’s findings; the Company’s dependence on its suppliers and contract manufacturers; 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 existing legal proceedings or the initiation of new legal proceedings and volatility of the Company’s stock price. You should carefully consider the above factors and the 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 other documents filed by the Company from time to time with the SEC. Investors (English): ir@faradayfuture.com

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Contacts

Investors (Chinese): cn-ir@faradayfuture.com

Media: john.schilling@ff.com

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