Faraday Future Intelligent Electric (FFIE) Status Update summary

Leadership and organizational transformation

• YT Jia appointed Co-CEO, sharing leadership with Matthias Aydt and gaining oversight of finance, legal, and supply chain, marking a shift to a founder-driven, professional management model.

• Equity incentives for YT Jia are directly tied to stock price and market capitalization milestones, with a maximum potential 9% stake if ambitious targets are met, aligning leadership interests with shareholders.

• The company is committed to a stockholder-first philosophy, with new incentive programs for executives and employees, and strong opposition to reverse stock splits and illegal short selling.

• Board and executive team emphasize regaining trust, transparency, and maximizing value for all stakeholders, aiming to restore market confidence.

• Management structure changes are intended to address past organizational complexity and drive rigorous financial discipline.

Strategic business and product initiatives

• Launch of the FX brand and strategy, with plans to develop and mass-produce multiple FX vehicles targeting blue ocean market opportunities, and the first FX vehicle targeted to roll off the line by end of 2025.

• Ambitious sales targets include tens of thousands of FX units sold within two years of mass production, supported by robust pre-order campaigns and pending necessary rights and funding.

• Focus on AI-driven innovation, including super AI hybrid systems, AI cabins, and advanced driving platforms for both FF and FX models.

• Expansion into the Middle East with plans for local manufacturing and sales, reinforcing global reach.

• Commitment to rapid product rollouts, leveraging partnerships with top-tier OEMs for cost-effective manufacturing and supply chain efficiency.

Financial discipline and capital strategy

• Achieved a 75% reduction in cash outflow year-over-year through cost control, operational streamlining, and expense reduction.

• Continued focus on financial discipline, aiming for positive gross margin, operating cash flow, and eventual profitability.

• Launching a global AI and AIEV tech M&A strategy to build a global AI vehicle ecosystem and accelerate capital market value recovery.

• Strong opposition to reverse stock splits and commitment to minimizing dilution from new share issuances.

• Ongoing campaign against illegal short selling to protect shareholder value.