Faraday Future's Q3 2025: Contradictions Emerge on Production Timelines, Preorder Numbers, Middle East Expansion, Tariff Impact, and FX Super One Strategy

Guidance:

• On track to deliver an additional FF 91 2.0 Futurist Alliance unit in December.
• First FX Super One deliveries in the U.S. and Middle East scheduled as early as November; Middle East delivery prep completed.
• FX mass production planned in 2026 with ramping capacity and increased component localization to limit tariff exposure.
• Complete FMVSS assessment tests at MGA to enable rollout of the first U.S. FX Super One.
• Release first manufacturing management system; FX 4 redesign rendering targeted for the LA Auto Show (subject to agreements).
• Opportunistic fundraising and continued liquidity management to support commercialization and ecosystem execution.

Business Commentary:

• Product and Technology Developments:
• Faraday Future (FF) has made significant strides in developing the FX Super One EAI-MPV, FF Super EAI FACE System, and EAI Space, showcasing these innovations at the FX Super One NPV launch event in July.
• Advancements include the introduction of intuitive gesture control and improvements in Federal Motor Vehicle Safety Standards testing, which contribute to a deeper user ecosystem and product innovations.

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• User Ecosystem Expansion:

• FF has secured over 11,000 paid non-binding Super One preorders, with agreements with prominent partners like Ariana Motors, ALPS, Space Auto, and ZEVO, expanding its co-creation ecosystem.
• The company's successful launch events and partnership strategies have led to increased brand visibility and user acquisition across various regions.

• Financing and Capital Markets:

• FF's financing activities generated $135.8 million in net cash inflows during the 9 months ended September 30, 2025, marking a 144% increase from the previous year, with $132.4 million received in Q3 alone.

• The increase in financing proceeds supports the company's operating runway and FX platform execution, reflecting a sustained trend of outpacing operating outflows.

• Manufacturing and Supply Chain Progress:

• The FX Super One entered the trial preproduction phase, with process planning and validation underway, ensuring timely delivery of parts and components.

• The company has begun shipping parts to its Hanford facility and is preparing for production assembly, marking significant progress in manufacturing capabilities.

• Geographic Expansion and Market Penetration:

• In the Middle East, FF secured nonbinding preorders for more than 200 total units within 48 hours after the FX Super One launch event in Dubai.
• The company's regional expansion strategy, supported by strong government engagement and partnerships, is enhancing its presence in high-value markets.

Sentiment Analysis:

Overall Tone: Positive

• Management emphasized progress: 'more than 11,000' nonrefundable B2B preorders, Q3 financing inflows of ~$132.4M (sixth consecutive quarter financing > operating outflows), completion of NASDAQ compliance monitor, and scheduled first deliveries in U.S./UAE; operating loss of $206.8M was framed as investment in engineering and ramping FX platform.

Q&A:

• Question from John Schilling (Faraday Future): The first question, what are the key features of FX Super One?
  Response: An AI-driven ultra-luxury EAI MPV centered on the FF Super EAI FACE system — immersive multimodal cabin AI, premium comfort (zero‑gravity Nappa seats, purification, massage), dual powertrain options (AI-HER hybrid and AI-EV), and multi-layer safety architecture for three-row protection.

• Question from John Schilling (Faraday Future): How many preorders has the company received to date? And when will they turn into firm orders?
  Response: As of Oct 28: >11,000 nonrefundable B2B deposits and ~250 refundable B2C preorders; management says preorders will convert to binding sales ahead of vehicle availability.

• Question from John Schilling (Faraday Future): The third question, update on tariff impact. How much will it increase costs for next year? How are you mitigating it?
  Response: Tariffs are an industry issue; company expects impact to remain manageable over the next 12 months as production localizes (Hanford SKD capacity up to 30,000) and FX ramps in 2026, using a bridge strategy and policy engagement to mitigate costs.

• Question from John Schilling (Faraday Future): Following the UAE launch, what initial reservation volumes have you seen? And what is your business strategy in the UAE?
  Response: Received B2B preorders for >200 Super One units in the UAE with strong high‑net‑worth and institutional interest; strategy relies on local partners, government support and crypto-related initiatives to accelerate regional ramp and deliveries (first Super One scheduled in November).

Contradiction Point 1

Production Timeline and Market Strategy

It relates to the company's production timeline and market strategy, which are crucial for meeting consumer demands and maintaining market competitiveness.

What is the current status of your U.S. production timeline and are you still on track for initial production by year-end? - John Schilling (Faraday Future)

2025Q3: We remain on track for the first FX Super One rollout in the U.S. by year-end. - Matthias Aydt(CEO)

What is your strategic plan for the Middle East market? Can you provide an update on operations there? - John Schilling (Faraday Future)

2025Q2: The plan for 2025 is to begin sales of the Super One model in the Middle East market, followed by sales in the U.S. market by the end of the year. - Matthias Aydt(CEO)

Contradiction Point 2

Preorder Numbers and Conversion Strategy

It involves the number of preorders secured and the strategy for converting these preorders into firm sales orders, which are key performance indicators for the company's sales and marketing efforts.

How many preorders has the company received to date, and when will they convert to firm orders? - John Schilling (Faraday Future)

2025Q3: As of October 28, the company has secured nonrefundable deposits, nonbinding B2B reservation orders for more than 11,000 FX Super One units and approximately 250 refundable nonbinding B2C preorders. - Matthias Aydt(CEO)

What themes have emerged in your discussions with top funds increasing their holdings? - John Schilling (Faraday Future)

2025Q2: Despite the ongoing global macroeconomic challenges, we believe the FF brand continues to resonate with consumers in the United States and abroad. As of March 31, 2025, we have secured more than 14,500 reservations for the FF 91 and/or the FX. - Koti Meka(CFO)

Contradiction Point 3

Middle East Expansion and Market Strategy

It involves the company's expansion strategy in the Middle East, which is crucial for international growth and market penetration.

Since the UAE launch, what initial reservation volumes have you seen? And what is your business strategy in the UAE? - John Schilling

2025Q3: The FX Super One launch in the UAE has been successful, with strong support from high-value co-creators, government officers, and potential investors. The company remains committed to rapid crypto-related business expansion due to government support. - Matthias Aydt(CEO)

What is the current progress of the FX? What is the current number of pre-orders? Are any ships currently shipping? - Kirk Tuckfield(VP of Research, Meeder Investment Management)

2024Q3: We have made significant progress in establishing our presence in the region... The location for our regional headquarters and the first FFIE customer center will be announced in the coming quarter. - Matthias Aydt(CEO)

Contradiction Point 4

Tariff Impact and Manufacturing Strategy

It pertains to the company's strategy in mitigating tariff impacts, which can significantly influence production costs and profitability.

What is the current impact of tariffs on costs? What steps are being taken to mitigate this impact? - John Schilling

2025Q3: As production scales up and more components are localized, reliance on imports will decrease. The FX bridge strategy connects global supply strengths with U.S. innovation and efficiency. - Matthias Aydt(CEO)

What is the progress of the FX project? How many pre-orders do you currently have? Are there any current product shipments? - Kirk Tuckfield(VP of Research, Meeder Investment Management)

2024Q3: Our FFIE factory in California continues to demonstrate its potential as a cornerstone of our manufacturing strategy... Manufacturing-related warranty improvement process was put in place... Our FF 91 software AI and human machine interaction with recent multiple software improvements. - Matthias Aydt(CEO)

Contradiction Point 5

FX Super One Preorders and Production Strategy

It involves differing statements regarding the preorder numbers and production strategy, which are crucial for understanding the company's sales and production plans.

How many preorders has the company received to date? When will they convert to firm orders? - John Schilling

2025Q3: As of October 28, the company has secured nonrefundable deposits, nonbinding B2B reservation orders for more than 11,000 FX Super One units and approximately 250 refundable nonbinding B2C preorders. - Matthias Aydt(CEO)

What is the management's strategy to ensure future growth and profitability in the current volatile market environment? - (No specific question, part of CEO's speech)

2024Q2: As of today, we received nonrefundable deposits for over 9,000 units with a 75% deposit rate. We're also excited to share that we have not just received the first preorder but also delivered the first car to our customer. - Matthias Aydt(CEO)