Faraday Future Reports Financial Results for Fourth Quarter and Full Year 2024

   -- Successful 2024 marked by new funding, Faraday X (FX) brand and product 
      strategy, advances with prototype mules testing phase, Middle East 
      expansion, and continued FF 91 2.0 deliveries. 
 
   -- Net loss from operations in 2024 was significantly reduced vs. 2023, 
      including a 55.3% improvement in Q4 vs the prior year quarter. 
 
   -- The FX Super One is anticipated to be unveiled in June of 2025, and 
      expects to start collecting paid reservations thereafter in preparation 
      for the first planned FX to roll off the line by the end of 2025. 
 
   -- The second potential FX product has benchmarked leading products in its 
      potential segments, including the Toyota RAV4, and plans to have a 
      product that equals the leaders in its segment. 
 
   -- First two FX 6 prototype mules shipped to the U.S. showing progress for 
      FX brand ramp up. 
 
   -- Recently changed Company Nasdaq ticker symbol to "FFAI" reflecting 
      strategic focus on AI technology. 
 
   -- Recent U.S. automotive tariff policy changes may help create favorable 
      conditions for FX, to further strengthen its market positioning and price 
      competitiveness. 
LOS ANGELES--(BUSINESS WIRE)--March 27, 2025-- 

Faraday Future Intelligent Electric Inc. (Nasdaq: FFAI) ("FF", "Faraday Future", or the "Company"), a California-based global shared intelligent electric mobility ecosystem company, today announced its financial results for its fourth quarter and full year 2024, highlighted by securing two rounds of funding commitments in September and December 2024, a total of more than $70 million, to support its FF and FX strategic developments. FF also made significant progress in FX product development with two prototype mules shipped to the U.S. in November 2024, and the recent change of its ticker symbol to "FFAI" reflecting its focus on AI technology.

During 2024, the Company implemented significant cost reduction measures across its operations, including a substantial decrease in personnel-related costs, professional services expenses, and general expenses such as rent and insurance. These initiatives contributed to a 75% reduction in year-over-year general and administrative expenses compared to 2023, while maintaining operational effectiveness.

RESULTS FOR FOURTH QUARTER 2024

   -- Net Loss from Operations: $30.3 million, a 55.3% improvement from $67.8 
      million in Q4 2023. 
 
   -- Operating Cash Outflow: decreased by 51.3% to $18.4 million, compared to 
      $37.8 million in Q4 2023. 
 
   -- Financing Cash Inflow: totaled $25 million, exceeding operating cash 
      outflows. 

As a result, financial stability improved significantly relative to the end of the first half of 2024.

RESULTS FOR FULL YEAR 2024

   -- Net Loss: $355.8 million, 58.0% of which was driven by a $206.4 million 
      in non-operating loss and non-cash expenses rather than core business 
      performance. 
 
   -- Net Loss from Operations: $149.7 million, a 47.7% reduction from $286.1 
      million in 2023, reflecting ongoing efforts to control R&D and G&A 
      expenses . 
 
   -- Operating Cash Outflow: $70.2 million, a 75% reduction compared to $278.2 
      million in 2023, highlighting FF's continued focus on cost control and 
      operational efficiency. 
 
   -- Cost of Revenue: increased by $41.4 million year-over-year, driven by 
      depreciation expenses that were $29.3 million greater than in 2023, as 
      additional equipment was placed into service to enhance production 
      capabilities, particularly in paint and body. 
 
   -- R&D Expenses: decreased by $106.8 million year-over-year, primarily 
      driven by: - $53.6 million reduction due to salary and headcount 
      reductions because many R&D personnel were reassigned to production 
      roles. - $35.2 million reduction in engineering, design, and testing 
      costs. - $14.9 million gain from the settlement of prior year accrued R&D 
      expenses with Palantir . 
   -- Sales and Marketing Expenses: decreased by $13.6 million year-over-year, 
      primarily due to: - $7.7 million reduction in compensation expense. - 
      $5.3 million total reduction in general expenses and advertising expenses 
      . 
   -- General and Administrative Expenses: decreased by $39.7 million 
      year-over-year, primarily driven by: - $23.2 million reduction in 
      professional service fees. - $10.7 million reduction in insurance costs, 
      primarily related to directors' and officers' insurance. 
   -- Non-Operating Loss: $206.4 million, primarily driven by 
      accounting-related, non-operating and non-cash items: - $188.3 million 
      valuation true-up related to existing and settled convertible notes and 
      warrants. - $16.6 million in interest expense . 

Overall, FF saw a clear trend of improving financial stability. In both Q3 and Q4 of 2024, financing cash inflows exceeded operating cash outflows. This positive cash flow dynamic, combined with a 75% year-over-year reduction in operating cash burn and meaningful cost reductions across R&D and SG&A, reflects the tangible progress FF has made in aligning cost structure with operational priorities, while positioning it for long-term scalability and financial resilience.

2024 SUMMARY

OVERALL:

FF built Light, Swift, and Empowering Model:

Light: Resource-efficient in assets, capital, and marketing

Swift: Agile decision-making, execution, and production

Empowering: Products, team members, users, and our global strategy

OPERATIONS:

FX Cooperation Agreements with Major OEMs: Established collaborations with several leading OEMs, enabling the launch of potential FX product development and testing.

FF 91's In-House Development and Upgrades: Features extensive proprietary technology and nearly 1,600 software upgrades, including the vehicle's AI system, laying the groundwork for FX's future empowerment.

Top-Tier User and Co-Creator Deliveries: Delivering FF91 to high-end users sets the stage for FX's potential future market success.

FINANCIAL:

Largely Improved Operation Efficiency:

   -- 2024 operating loss: $149.7 million, reduced 47.7% from 2023. 
 
   -- 2024 operating cash outflow: $70.2 million, reduced 75% from 2023 . 
 
   -- 58.0% of 2024 net loss driven by non-operating losses and non-cash 
      expenses, rather than business performance. 

CAPITAL:

Capital market performance underwent a fundamental improvement:

   -- Regained Nasdaq full compliance. 
 
   -- Surge in retail investor participation--registered stockholders (based on 
      NOBO list) grew by approximately 163% from mid-2023 to January 2025, 
      suggesting rising retail investor interest and engagement. 
 
   -- Total Capital Raised (2024): $76.7 million--surpassing the Company's 
      operating and investing cash outflows and strengthening the balance 
      sheet. 

Grow Fandor Initiatives: The Company's founder, YT Jia, donated a 10% equity stake in Grow Fandor, a global IP commercialization company, to the Company as a gift, and the Company entered into an exclusive licensing agreement with Grow Fandor relating to the commercialization of the Company's merchandise.

The fourth quarter of 2024 represented continued progress for FF with significant advancements in its dual-brand strategy. New capital raised in 2024 will help fund critical initiatives in 2025, including ongoing production and deliveries of the FF 91 2.0 while simultaneously advancing development of the potential mass-market FX lineup. This approach strengthens FF's position in the premium AIEV segment while accelerating FF's potential expansion into the broader consumer market through its FX brand.

In 2024, FF saw significant progress in strengthening its financial position, which has been critical to advancing FF's strategic goals. On September 4, 2024, Nasdaq officially confirmed that FF had regained compliance with its bid price requirement in Listing Rule 5550(a)(2) and the periodic filing requirement in Listing Rule 5250(c)(1). This achievement followed a series of strategic actions to address previously identified deficiencies. Restoring compliance reflects the resilience and determination of our team, along with our unwavering commitment to transparency and strong governance. It also strengthens investor confidence in our ability to deliver on our long-term strategic vision.

FX BRAND DEVELOPMENT AND PRODUCT STRATEGY

FF unveiled the FX Super One concept in January 2025, an innovative first-class AI-MPV, expanding a potential product lineup alongside the previously announced FX 5 and FX 6 concept models. Targeting distinct price segments, the FX 5 (target base price of $20,000-$30,000) and FX 6 (target base price of $30,000-$50,000) could feature two dual powertrain options: range-extended AIEV and battery-electric AIEV. With aggressive development timelines, FX aims to have one of these models roll off the line by the end of 2025, contingent on securing appropriate funding and finalizing necessary agreements.

The Company has achieved significant milestones in FX product development, with two Super One camouflaged prototype mules shipped to the U.S. in November 2024, marking the commencement of comprehensive development and testing operations on U.S. soil. These prototype mules will undergo rigorous validation across multiple systems, including ADAS capabilities, autonomous driving functions, propulsion performance, intelligent cabin features, and holistic user experience evaluation.

The FX brand strategy aims to seize what the Company has identified as "four blue ocean markets" in the U.S. AIEV market: range-extended vehicles, intelligent vehicles defined as mobile living spaces, AIEV's priced between $20,000 to $40,000, and luxury AI-MPVs.

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