- An open letter from Matthias Aydt, Global CEO of Faraday
Future.
Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE)
(“Faraday Future”, “FF” or “Company”), a California-based global
shared intelligent electric mobility ecosystem company, today
released an open letter from Matthias Aydt, Global CEO of FF, to
share an updated master plan 1.1 for the growth of Faraday Future
in 2024.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240225201526/en/
Faraday Future Announces Updated Master
Plan 1.1 to Strategically Position Itself for Growth in 2024.
(Photo: Business Wire)
Opportunities and Accomplishments
I’m issuing this letter to align expectations as to where FF
stands today and where we hope to lead FF in 2024. FF has made
great strides in the past 12 months, under limited funding and
strong headwinds from the markets, including the changing landscape
of the EV business.
FF entered the revenue generation phase in 2023 and established
a closed-loop operation from user acquisition and delivery to user
operations while launching the process of adding industry leaders
and partnering with our first users and Co-Creation Officers. There
were significant changes in FF’s business foundation, including the
addition of a new management team that we believe collectively
boasts the strongest capabilities in the history of FF. We believe
that during this critical period for business growth, the Company
is now structurally best positioned for the next development phase
since its inception.
- FF is only one of five new EV companies globally that has
passed US homologation requirements, others include Tesla, Lucid,
Rivian, and Fisker.
- $3 billion invested capital to date to create an industry
leading EV platform, I.A.I. technology, product development and
manufacturing capabilities.
- 660 patents filed or issued utility and design patents for both
EV and I.A.I. technology competitiveness.
- 10,000 capacity - future potential annual production capacity
at FF's self-operated manufacturing facility in Hanford, California
with $200+ million invested.
- Dual Home Deep cultural roots in both the US and China provide
competitive advantage across two of the largest EV markets with
anticipated movement into the Middle East Markets in 2024.
- High-profile vehicle owners and Co-Creation Officers such as
Chris Brown, Motev and others, demonstrating strong brand
power.
- Direct sales online with anticipated targeted in-person
experience centers and FF partner stores across target markets such
as the US, China, Europe, and the Middle East.
- Phase Two of the Company's Three-Phase Delivery Plan for the
Company’s FF 91 2.0 Futurist Alliance launched in the third quarter
2023.
FF also signed an agreement with the Abu Dhabi Investment Office
(ADIO) to unleash generative AI and advanced EVs for Abu Dhabi's
SAVI cluster. Abu Dhabi’s SAVI cluster builds on the strength of
Abu Dhabi’s industrial base and supports the UAE’s target of half
of all cars on the roads being electric by 2050.
The Middle East market presents exciting opportunities for smart
and autonomous vehicles and is well aligned with FF product
technology and brand positioning. We look forward to this being our
first of many future endeavors and collaborations in the Middle
East.
We believe that the FF 91 2.0 is a vehicle uniquely positioned
to provide new markets representing a new generation of aiEV users
with a fully integrated, optimized software and hardware
architecture to create a true All-Ability Hypercar. This vehicle
includes full connectivity and personalized AI services and
features.
Key Deliverables Since Previous Announcement of FF’s Master
Plan on October 2023
- Gradually evolving the corporate orientation and direction
towards a continuous operation with similar priorities in regard to
production and sales as well as enhancing the product power of the
product palette.
- Actively managing costs and expenses and focusing on improving
Company-wide efficiency.
- Expanding our market presence into TechLuxury markets beyond
the U.S with adequate volumes.
- Focusing on cashflow breakeven and next growth steps.
- Continuous product and technology enhancements to maintain
unique position in the market.
- Took action to investigate short selling to protect shareholder
interest.
Have resulted in:
- A lean and flat organization dedicated to Product Definition,
Product Execution, Product Delivery, User Operation, Corporate
Development and supporting functional areas.
- Manufacturing, supply chain and product quality
improvements.
- Reasonable cost structure and optimized costs and
expenses.
- A successful market launch in one of the most important
TechLuxury markets, the UAE.
- Confirmation of a solidified execution plan for 2024 and 2025
and beyond with clearer projection of profitability.
- A start of definition and conceptualization of the next
generation revolutionizing product enhancement.
- Communications with various securities brokers regarding our
short selling analysis.
Product and Technology
FF 91 comes from our disruptive approach to innovation across
intelligent technology, user-centric design, and EV propulsion. It
is a user-centric experience designed for people with many talents,
many obligations and many goals in life. FF has addressed these
complex needs in a single vehicle that combines the luxury of an
intelligent connected space, with the capabilities of a
hyper-dynamic EV powertrain and predictive AI architecture.
Together, these elements work to elevate a user’s potential, and
provide them the ultimate freedom to do what they want, when they
want and how they want.
The FF 91 has tri-motor powertrain capability, 1050 hp, is
faster than Lamborghini Urus, and has a reported 381 miles EPA.
It is also the first AI capable car able to run Zoom, ChatGPT,
livestream, has a strong computing capacity with self-designed
software and hardware platform including Nvidia chips and 5G*3
access point connectivity.
As we recently announced, we continuously keep our product at
the forefront through over-the-air (OTA) upgrades. These OTA
upgrades significantly enhance the interaction between the user’s
smartphone and their vehicle, making functions more intuitive and
user-friendly. In addition to supporting conventional functions
like unlocking doors, air conditioning, and charging, it also
enables comprehensive control of in-car screens, enhancing the
experience of in-car entertainment and work activities.
Beyond the outstanding performance, technology, and agility of
our product we have discussed in the past, we would request that
everyone who has the chance to get into our car should take that
opportunity to be amazed by the experience.
Financial Updates
We are continuing to make progress on future funding and believe
we will successfully close on an additional round of capital from
strategic and financial investors. We are currently also working to
tighten restrictions to convertible note holders for their
conversion and paused both our ATM program and ELOC.
We are succeeding in reducing our monthly cash burn by cutting
back on spending that is no longer necessary given our more
advanced stage of development while continuing to balance
investments into the business that are critical to moving the
Company forward.
We are prioritizing cash flow breakeven over volume to avoid
scaling production too quickly, which has been an issue for many
competitors. As such, we believe we will be cash flow breakeven at
a lower vehicle production/delivery figure than that of our
competitors. Additionally, our market (in terms of price point) is
far less crowded.
Cost Reduction: Bill of Materials
(BoM)
Significant reduction in cost - some of this is coming naturally
with improvements in manufacturing efficiency but we are also
targeting specific elements of the BoM, switching suppliers, and/or
insourcing the production where available and cost effective.
This is yielding meaningful, fruitful results – one example was
taking a key component of the vehicle bringing the production
in-house, this led to approximately $50,000 savings on a single
element of the BoM. We are working on various other opportunities
and low-hanging fruit that still exists in terms of continuously
and meaningfully reducing the BoM in the near term.
Next Steps
1. Operations: Operation optimization and upgrade to
achieve sustainability in the near future.
- Cost reduction and spending efficiency, including daily
operation and FF91 material cost.
- Continue product deliveries to celebrities and opinion
leaders.
- Achieve industry-leading advantages in product and technology
powers and “Ultimate AI TechLuxury” Top Brand momentum through the
FF Co-Creation model.
- Focus on U.S, China Dual Home market & Middle East 3rd
Pole.
- Achieve industrial implementation in the Middle East, access
and localization of products and technologies, and establishment of
a user ecosystem.
2. Product and technology: Continuously enhance the
product and technology powers of the FF 91 2.0.
- Middle East product planning and implementation: Launch FF 91
2.0 aiFalcon this year.
- Research and develop the next-generation product FF 92,
maintaining FF's leading edge in product and technology
powers.
- Focus on the application research and development of AI
technology, continue to lead in the vertical application of
generative AI in the mobility field.
3. Manufacturing/Supply Chain: Progress the equipment
commissioning and upgrading of FF ieFactory to lay the foundation
for increased production.
- Comprehensively improve the factory manufacturing system and
promote the continuous upgrade of the production and manufacturing
quality system.
- Promote global supply chain integration and establish a global
strategic supplier system.
- Further promote supplier quality and capacity enhancement and
improve the supply chain quality performance system and cost
reduction.
4. Funding and Finance:
- Continue and accelerate current plans to bring strategic
investors.
- Globally optimize and upgrade the Company's financial system in
the three regions, improve financial efficiency, and establish
healthy and sustainable cash management.
We believe that FF has the foundations to support future growth,
subject to obtaining additional needed funding. We've triumphed
over the challenging moments many times in our past, and FF has
been bolstered by many achievements. Since the start of deliveries
in 2023, and leading into 2024, the Company has consistently taken
measures to reduce operational and supply chain costs in support of
our strategic objectives.
We believe that these steps will only help us succeed moving
forward. With our unique DNA and the support of our global
employees, our present and future users, and our many stakeholders,
we remain steadfast in our belief that we stand on the cusp of an
extraordinary surge of energy and success!
Sincerely,
Matthias Aydt
FORWARD LOOKING STATEMENTS
This communication 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
communication the words “estimates,” “projected,” “expects,”
“anticipates,” “forecasts,” “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 regarding the ability of the Company to execute
on its updated master plan and its overall effectiveness, involve a
number of known and unknown risks, uncertainties, assumptions and
other important factors, many of which are outside the Company’s
control, that could cause actual results or outcomes to differ
materially from those discussed in the forward-looking statements.
Important factors, among others, that may affect actual results or
outcomes include, among others: the Company’s ability to continue
as a going concern and improve its liquidity and financial
position; the Company’s ability to remediate its material
weaknesses in internal control over financial reporting; risks
related to the restatement of the Company’s 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;
increased operating expenses; incorrect assumptions and analyses
developed by management; the market performance of the Company’s
common stock; the Company ability to regain compliance with Nasdaq
listing requirements; the Company’s ability to execute on its plans
to develop and market its vehicles and the timing of these
development programs; the Company’s estimates of the size of the
markets for its vehicles and cost to bring those vehicles to
market; the rate and degree of market acceptance of the Company’s
vehicles; the success of other competing manufacturers; the
performance and security of the Company’s vehicles; the Company’s
ability to receive funds from, satisfy the conditions precedent of,
and close on the various financings described elsewhere by the
Company; the result of current and future financing efforts, the
failure of any of which could result in the Company seeking
protection under the Bankruptcy Code; the Company’s indebtedness;
the Company’s ability to cover future warranty claims; insurance
coverage; the outcome of the Securities and Exchange Commission
(“SEC”) investigation relating to the matters that were the subject
of the Special Committee investigation; the success of the
Company’s remedial measures taken in response to the Special
Committee 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 against
cybersecurity risks; general economic and market conditions
impacting demand for the Company’s products; risks related to the
Company’s operations in China; risks related to the Company’s
stockholders who own a significant amount of the Company’s common
stock; potential cost, headcount and salary reduction actions may
not be sufficient or may not achieve their expected results; the
ability of the Company to attract and retain directors and
employees; any adverse developments in existing legal proceedings
or the initiation of new legal proceedings; and volatility of the
Company’s stock price. The foregoing list of factors is not
exhaustive. You should carefully consider the foregoing factors and
the other risks and uncertainties described in the “Risk Factors”
section of the Company’s Annual Report on Form 10-K/A for the year
ended December 31, 2022 and Quarterly Report on Form 10-Q for the
quarter ended September 30, 2023, as well as the risk factors
incorporated by reference in Item 8.01 of the Current Report on
Form 8-K/A filed with the SEC on December 28, 2023, and other
documents filed by the Company from time to time with the SEC.
These filings identify and address other important risks and
uncertainties that could cause actual events and results to differ
materially from those contained in the forward-looking statements.
Forward-looking statements speak only as of the date they are made.
Readers are cautioned not to put undue reliance on forward-looking
statements, and the Company does not undertake any obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240225201526/en/
Investors (English): ir@faradayfuture.com
Investors (Chinese): cn-ir@faradayfuture.com
Media: john.schilling@ff.com
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