FARADAY FUTURE INTELLIGENT ELECTRIC INC.

Faraday Future Intelligent Electric Inc. (the "Company") operates in the technology-driven intelligent, connected electric vehicle (AIEV) industry, focusing on the design, engineering, and development of electric vehicles and related artificial intelligence-enabled technologies ¹. The global electric vehicle market is characterized by varying adoption trends, with China being the largest and most advanced market, Europe showing progress, and the United States experiencing more gradual growth ². Key factors influencing EV market adoption include consumer demand, affordability, charging infrastructure, vehicle range, product-market fit, and regulatory conditions ³. The Company believes its dual-home market strategy, technology platform, intellectual property portfolio, and focus on product design, driving performance, and user experience position it to pursue opportunities in this evolving market ⁴.

The Company has experienced, and expects to continue to experience, intense competition from several companies, particularly as the transportation sector increasingly shifts toward low-emission, zero-emission, or carbon-neutral solutions ⁵. Primary competitive factors in the electric vehicle market include pricing, brand recognition, technological innovation, customer experience, vehicle performance, quality, safety and reliability, space, comfort, user experience, design, styling, interior materials, supply chain management, and manufacturing efficiency ⁶. The Company believes it will compete favorably on these factors, but acknowledges that most current and potential competitors have greater financial, technical, supply chain, manufacturing, marketing, and other resources ⁷. The FF series directly competes with other pure-play electric vehicle companies targeting the high-end segment, while the FX series is intended to compete with mass-market electric vehicles ⁸.

The Company generates revenue through the design, engineering, and development of intelligent, connected electric vehicles and related artificial intelligence-enabled technologies ⁹. Its core business model is centered on its AIEV platform, including the FF and FX vehicle series ¹⁰. The Company also holds a majority interest in AIxCrypto Holdings, Inc. ("AIXC"), an independent public company, whose business is focused on embodied AI infrastructure and blockchain infrastructure ¹¹. The Company's distribution model plans to utilize a direct sales model integrating online and offline sales channels, supported by partner-owned stores and showrooms, and a co-creation and ecosystem-based sales model ¹².

The Company's current vehicle lineup includes the FF 91 series and the FX Super One ¹³. The FF 91 series is the Company's first production vehicle, positioned as an ultra-luxury, AI-enhanced electric vehicle in the E-segment / Executive Full-Size or F-segment / Full-Size luxury category ¹⁴. The FF 91 Futurist Alliance has a manufacturer's suggested retail price of approximately $309,000 ¹⁵. The FX Super One series is the first multi-purpose vehicle (MPV) under the FX brand, positioned as a premium, AI-enhanced MPV ¹⁶. The Company also has pipeline products including the FF 92, envisioned as the next-generation ultra-luxury electric vehicle, and the FX 4 and FX 6, which are AI-enhanced midsize sport utility vehicles and family-oriented electric vehicles, respectively, with expected price ranges of $30,000 to $45,000 for the FX 4 and $30,000 to $50,000 for the FX 6 ¹⁷.

For the year ended December 31, 2025, the Company recognized $0.5 million in revenue ¹⁸. The Company incurred a net loss of $397.1 million ¹⁹ and net cash used in operating activities was $107.6 million ²⁰. As of December 31, 2025, the Company had an accumulated deficit of $4.7 billion ²¹. The Company's total debt as of December 31, 2025, included $503.3 million in funded convertible note financing commitments ²².

Comparing to the year ended December 31, 2024, the Company's net loss increased from $355.8 million ²³ to $397.1 million ²⁴ in 2025. Net cash used in operating activities increased from $70.2 million ²⁵ in 2024 to $107.6 million ²⁶ in 2025. The Company recorded an asset impairment of $128.9 million ²⁷ during the year ended December 31, 2025, due to the shift in strategy from relying primarily on the FF 91 platform, the elimination of federal tax credits for electric vehicles effective September 30, 2025, and escalating U.S.-China trade tensions and potential restrictions on critical materials ²⁸.

During 2025, the Company began deploying FF 91 AI and software technologies, including a voice interaction system based on large language models, into the FX product line ²⁹. In December 2025, the first FX Super One pre-production vehicle rolled off the line at the Company's FF aiFactory California manufacturing facility ³⁰. The Company also entered into B2B vehicle reservation agreements for up to 1,000 FX Super One vehicles with JC Auto ³¹, up to 300 FX Super One vehicles with Sky Horse Auto LLC ³², and secured 600 additional B2B deposits from CreatoRev and Good Deal ³³, bringing total FX Super One B2B deposits to over 2,500 units ³⁴. In September 2025, the Company obtained a controlling interest in AIXC through a strategic investment ³⁵.

The Company expects to continue to generate significant operating losses for the foreseeable future ³⁶. Management determined that the Company would be required to obtain additional funding to continue as a going concern ³⁷. The Company relies on capital from investors to support its operations and does not have sufficient cash on hand to meet its current obligations ³⁸. The Company is currently unable to generate cash through its at-the-market equity program or via its Registration Statement on Form S-3 because it is not currently S-3 eligible ³⁹. The Company also has limited remaining authorized share availability to generate cash through equity or equity-linked issuances ⁴⁰.

The Company expects to need substantial additional financing to start the third phase of its three-phase delivery plan of the FF 91 Futurist, as well as to execute its FX strategy ⁴¹. The Company's long-term strategy is centered on building an integrated Embodied Artificial Intelligence ("EAI") ecosystem that includes intelligent electric vehicles and robotics ⁴². Its product roadmap builds on the FF 91 platform through the planned FF 92 upgrade program and the FX Super One ⁴³. The Company is developing the FF 92 as the next-generation ultra-luxury electric vehicle built on the FF 91 platform ⁴⁴. The FX Super One is being developed as the first "First Class AI-MPV" under the FX brand, with pilot production and regulatory preparations underway ⁴⁵. The Company's planned B2C passenger vehicle lineup also includes the FX 4 and FX 6, which are in the early stages of research and development ⁴⁶.

The Company expects operating expenses to increase significantly, including R&D expenses, capital expenditures relating to manufacturing capacities, additional operating costs for production ramp-up, raw material procurement costs, general and administrative expenses, and sales, marketing, and distribution expenses ⁴⁷. The Company's ability to become profitable will depend on its ability to successfully market its vehicles and control costs ⁴⁸. The Company may implement additional headcount reductions to preserve its current cash position, but plans to expand hiring efforts to support targeted vehicle production as it scales ⁴⁹.

The Company plans to continue to build out its leased FF aiFactory in California to support the production of the FF 91 series ⁵⁰. The facility encompasses approximately 1.1 million square feet ⁵¹ and is expected to have an estimated annual production capacity of approximately 30,000 vehicles ⁵². The Company also plans to assemble the FX Super One and future FX series vehicles at this facility ⁵³. Through an agreement with the Ras Al Khaimah Economic Zone ("RAKEZ"), the Company plans to lease a facility of approximately 108,000 square feet ⁵⁴ in the U.A.E. to support regional vehicle assembly and sales ⁵⁵. In January 2025, the Company entered into definitive engineering services agreements through its FX subsidiary with an automotive OEM in Asia to support the FX vehicle program ⁵⁶.

The Company has obtained commitments from several investors totaling $739.0 million in convertible note financing, with $49.5 million remaining unfunded as of December 31, 2025 ⁵⁷. Investors also have an option to invest an additional $467.0 million, of which $40.5 million remained optional funding as of December 31, 2025 ⁵⁸. The Company does not expect to pay cash dividends on its Class A Common Stock ⁵⁹.

The Company faces significant barriers to growth in the electric vehicle industry, including continuity in development and production of safe and quality vehicles, brand recognition, customer base, marketing channels, pricing policies, talent management, value-added service packages, and sustained technological advancement ⁶⁰. The Company's financial forecasts rely on management's assumptions and analyses, which could be incorrect, and its fundraising efforts may be unsuccessful ⁶¹. The production and delivery of the FF 91 Futurist has experienced, and may continue to experience, significant delays due to insufficient capital, supply shortages, design defects, additional system testing, talent gaps, and/or force majeure ⁶². Non-binding pre-orders and other non-binding indications of interest may not convert into binding orders or sales ⁶³. The Company's latest business strategy, the Bridge Strategy and/or Dual Brand Strategy, which focuses on a to-be developed FX brand, is subject to numerous risks and uncertainties, including insufficient demand, intense competition, lack of necessary funding, existing and new tariff policies, and the cost of procuring components ⁶⁴.

The Company faces substantial risks, including insufficient liquidity to pay outstanding obligations and operate its business, which could lead to bankruptcy protection if additional capital is not accessed ⁶⁵. It has incurred cumulative losses of $4.7 billion ⁶⁶ as of December 31, 2025, and anticipates continued significant operating losses ⁶⁷. The Company has significant unfunded commitments of $49.5 million ⁶⁸ from existing convertible note financing, and an additional $40.5 million ⁶⁹ in optional funding from investors, which may not be realized ⁷⁰. The production and delivery of the FF 91 Futurist has experienced, and may continue to experience, significant delays due to insufficient capital, supply shortages, and other factors ⁷¹. The Company relies on single-source suppliers for many components, and disruptions could materially and adversely affect its business ⁷². Changes in U.S. and international trade policies, including tariffs, particularly with regard to China, may adversely impact business and operating results ⁷³. For example, the U.S. government announced higher tariffs on electric vehicles, which will be subject to a tariff rate of 100% from August 1, 2024 ⁷⁴. The Company is subject to cybersecurity risks, and any failure, cyber event, or breach of security could prevent effective operation, harm reputation, and subject it to significant liability ⁷⁵. The Company also faces challenges from the evolving regulatory environment regarding cybersecurity, information security, privacy, and data protection in China, with new laws and regulations potentially increasing compliance obligations and risks ⁷⁶. The Company, its founder and Global Co-Chief Executive Officer, and its Global President, each received a Wells Notice from the SEC contemplating a civil enforcement action, although the Company received a letter on March 18, 2026, stating the SEC staff does not intend to recommend an enforcement action against the Company ⁷⁷.

Management's message to shareholders emphasizes a commitment to transparency, accountability, and long-term value creation, including share purchases by the Company's leadership ⁷⁸. The Company's long-term strategy is centered on building an integrated Embodied Artificial Intelligence ("EAI") ecosystem that includes intelligent electric vehicles and robotics ⁷⁹. Key strategic priorities include the dual-home market strategy, integrating U.S.-based technological innovation with China's supply chain and production capabilities ⁸⁰, and the "third pole" strategy with an operational facility in the U.A.E. ⁸¹. The Company also focuses on a dual-flywheel strategy, connecting intelligent mobility operations with emerging digital asset and Web3 initiatives, and integrating real-world business operations with on-chain assets and blockchain-based initiatives ⁸². The Company expects to continue to generate significant operating losses for the foreseeable future ⁸³ and requires additional funding to continue as a going concern ⁸⁴.