FFAI

NEW YORK CITY, NY / ACCESS Newswire / August 31, 2026 / Emerging Growth Research ("Emerging Growth Research" or "EGR") today announced the release of its company-sponsored research quarterly update on Faraday Future Intelligent Electric, Inc. (NASDAQ:FFAI), a physical AI ecosystem company focused on robotics and mobility solutions through AI innovations and technology. Key Highlights Revenue Growth Accelerates - Faraday Future reported Q2:26 revenue of approximately $0.8 million, representing a 1,448% year-over-year increase from approximately $0.1 million in Q2:25. Revenue also increased approximately 63% sequentially from $0.5 million in Q1:26. Robot Shipments Continue to Increase - The Company reported cumulative robot shipments of 242 units through Q2:26, while subsequently increasing cumulative shipments to 394 units by the end of July. Management has reiterated its expectation of shipping approximately 2,000 robots during FY:26. Customer Deposits Remain Strong - Faraday Future exited Q2:26 with approximately $13.4 million in customer deposits, relatively stable compared with $13.8 million at the end of Q1:26. EGR believes the level of deposits provides an indication of continued demand and represents potential future revenue as orders are fulfilled. Four-Core, Full-Stack AI Strategy - During Q2, Faraday Future evolved its strategy into a "Four-Core, Full-Stack AI ecosystem," adding Industry Productivity Solutions and Developer Platform alongside the EAI Brain, EAI Devices and EAI Data Factory. Advancing EAI Brain Technology - The Company has completed the initial development of its core technology framework for the EAI robot brain and established a comprehensive stack encompassing AI interaction, vision, language, action, VLA models, robotic manipulation and whole-body motion control. Faraday Future is also leveraging NVIDIA GR00T for continued VLA model fine-tuning and training on real robot data. EAI Data Factory Shows Commercial Progress - The EAI Data Factory has formed what management describes as a complete commercial closed loop, with initial sample payments generated. The Company's primary customer has a potential order value of more than $400,000 at the high end, while negotiations continue with a top-tier data company. Faraday Future has also engaged more than 20 supplier partners and reached initial agreements with two partners for Southeast Asia data collection sites. Expanding Industry Productivity Solutions - Faraday Future plans to initially focus its Industry Productivity Solutions strategy on education, industrial applications, security inspection and other existing markets. The integrated deployment model is designed to support multiple robots, locations, robot form factors and remote operations while accelerating real-world data collection and development of the EAI Brain. Liquidity and Capital Access - Faraday Future exited Q2:26 with approximately $53.9 million in cash and equivalents, including $11.2 million of unrestricted cash. The Company raised approximately $70 million in capital during Q2 and subsequently raised another $1 million through an at-the-market share offering. Potential Dual Revenue Opportunity - In addition to robot sales, Faraday Future has begun generating data subscription contracts and believes increasing robot sales and deployments could create an opportunity for revenue growth from both hardware and skills-related services. Full Report The full Faraday Future Intelligent Electric, Inc. Fiscal Q2 2026 Quarterly Update from Emerging Growth Research is available at: ffai-q226-quarterly-update.pdf or https://emerginggrowth.com/profile/ffai/ (on the right side of the page as you scroll down)About Faraday Future Intelligent Electric, Inc. Faraday Future Intelligent Electric, Inc. (NASDAQ:FFAI) is a physical AI ecosystem company dedicated to reshaping the future of robotics and mobility solutions through AI innovations and technology. The Company focuses on embodied AI robotics, including EAI humanoid and bionic robots, EAI automotive-focused robots and the EAI Brain. During Q2:26, the Company expanded its strategy into a Four-Core, Full-Stack AI ecosystem encompassing the EAI Brain, EAI Devices, EAI Data Factory, and Industry Productivity Solutions and Developer Platform. About Emerging Growth Research Emerging Growth Research, LLC ("EGR") is a research firm focused on emerging growth companies, including small-, micro- and nano-cap companies across healthcare, biotechnology, energy, metals and mining, technology and other emerging industries. EGR provides research reports, quarterly updates, flash reports and other investor-focused content covering emerging growth companies. Emerging Growth Research also provides company-sponsored research services. The research referenced in this press release is company-sponsored research. Contact:Emerging Growth [email protected] Forward-Looking Statements This press release contains forward-looking statements concerning Faraday Future's business operations, financial performance, robot shipments, customer demand, technology development, commercialization initiatives, data-related opportunities, Industry Productivity Solutions, future revenue opportunities and growth expectations. These statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied. Important risk factors include, but are not limited to, uncertainty regarding demand for the Company's products, the Company's ability to successfully commercialize its robotics and AI technologies, manufacturing and deployment challenges, the timing and amount of future revenue, the Company's ability to raise additional capital, potential dilution, competition, technology development risks, and the Company's ability to execute its growth strategy. Disclosure This report was prepared for institutional and professional investors ONLY, and it is also known as Company Sponsored Research ("CSR"). Collectively, however ("EGR Report(s)"). Be advised that this EGR Report is being provided by Emerging Growth Research LLC (EGR) solely for informational purposes, is not the opinion of EmergingGrowth.com (EG), should not be construed as an offer or solicitation to buy or sell securities, and should not be considered in any decision to buy or sell any security mentioned within the EGR Reports. All information contained in the EGR Report as well as on the EmergingGrowth.com website is obtained from sources believed to be reliable but not guaranteed to be accurate or all-inclusive, timely, or correct. The information includes certain forward-looking statements, which may be affected by unforeseen circumstances and / or certain risks. Because EGR is compensated as detailed herein and EG receives Licensing fees from EGR, as also detailed herein, EG and EGR have a conflict of interest and strongly urge you to consult your own independent financial, investment, tax, and legal advisors prior to purchasing or selling any securities mentioned herein. The analyst that has prepared and is responsible for the content of this report has stated that neither he/she, nor any of his/her associates both professional and personal, to the best of his/her knowledge have no personal or professional relationship with any of the companies or principals of any companies mentioned within, other than providing services that EGR may offer. EGR is being compensated by the subject Company of this report. EGR was paid twenty five thousand dollars and does not expect to receive an additional payment over the following eleven months. EGR may have also received additional past compensation, EGR may receive future compensation, and EG may receive compensation for additional services such as presenting on the Emerging Growth Conference or investor or public relations services, details about which can be found in the full disclosure, here: https://emerginggrowth.com/faraday-egr-report-disclosure/. It is the intent of EGR to provide continuing coverage on a quarterly basis, or otherwise for the subject Company of this report; however, EGR and EG will not notify readers of this report if coverage by EGR, for any reason is terminated. The reader or user of this content agrees that neither EGR and / or EG nor the analysts, directors, officers, employees, representatives, independent contractors, agents or affiliates of EGR and EG shall be liable or held liable for any omissions, errors, or inaccuracies, regardless of cause, foreseeability, or the lack of timeliness of this or any of our other reports to users. This lack of liability extends to direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, losses, lost income, lost profit, or opportunity costs. Again, all information contained herein should be independently verified by your own research and your own independent financial, investment, tax, and legal advisors prior to purchasing or selling any securities mentioned herein. In addition to the specific disclosures mentioned herein, you are encouraged to read our general disclosure here: EmergingGrowth.com/Disclosure. Rating Definitions Buy, 30% or greater price appreciation in the next 12 months. Buy-Extended, near-term EPS and/or revenue horizon is challenging with strong long-term appreciation possibility. Buy-Emerging, initial stages with low revenue and the potential for large returns with higher risk and volatility. Hold, perform similar to market. Sell, 30% or more decline in the next 12 months. © Copyright 2026 Emerging Growth Research LLC. No part of this material may be copied, photocopied, duplicated or redistributed without the prior written consent of Emerging Growth Research LLC. SOURCE: Faraday Future Intelligent Electric Inc. Related Documents: FFAI Q2.26 Quarterly Update View the original press release on ACCESS Newswire

FF will host Part One of the FF EAI Robotics "Built in USA" Upstream & Downstream Business Partner Conference on Aug. 26, with—the "Four-Core Full-Stack AI" Ecosystem Downstream Partner Session and the EAI Education Ecosystem Milestone Showcase & Nationwide Expansion Session, to take place at FF’s headquarters in Los Angeles. Guests will be able to listen to speeches by Company leadership and external partners as well as experience firsthand the Company’s newest robotics initiatives and advanced robotics product line-up from the FF EAI Robot World. A recap video will be available at www.ff.com at 5:00 PM PDT, August 26, following the conference. LOS ANGELES, August 25, 2026--(BUSINESS WIRE)--Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI) ("Faraday Future", "FF" or the "Company"), a California-based global Embodied AI (EAI) ecosystem company, today announced that it will host Part One of the FF EAI Robotics "Built in USA" Upstream & Downstream Business Partner Conference on Aug. 26, with—the "Four-Core Full-Stack AI" Ecosystem Downstream Partner Session and the EAI Education Ecosystem Milestone Showcase & Nationwide Expansion Session, to take place at FF’s headquarters in LA. Against the backdrop of the FCC’s new policy framework, FF, as the first U.S. Company to have delivered both humanoid and bionic robots, is well positioned to capitalize on the market opportunities created by rising industry entry barriers and accelerate the conversion of its first-mover advantage in product delivery into a competitive market advantage. Meanwhile, following the initial rollout of six product series across the Full-Form FF EAI Robot World, FF has officially upgraded its EAI robotics strategy to the Four-Core Full-Stack AI Ecosystem Strategy, comprising the EAI Brain; EAI Devices; Industry Productivity Solutions and Developer Platform; and EAI Data Factory. Event Highlights: 1. A briefing on the FCC’s new policies and the launch of the "Built in USA" Global Industry Alliance Initiative. 2. Part One of the implementation roadmap presentation for the FF EAI Robotics "Built in USA" Acceleration Program, with Part Two scheduled for September 28. 3. A preview of two new FF EAI robotics products under the "Built in USA" program. 4. Exclusive private previews of several upcoming products from the FF EAI Robot World, including Master Mini, ahead of their September 19 launch. 5. Key milestones from the FF EAI Education Ecosystem and its nationwide expansion plan. 6. Downstream partner recruitment for the FF EAI Robotics "Built in USA" program. 7. RoboShare’s next-phase plan and business partner recruitment. RoboShare is AIxC’s robot-sharing and rental platform. FF sincerely invites its customers, channel and sales partners, educational institutions, system integrators, and ecosystem partners to join the Company in person, witness and participate in this initiative, and help build the EAI robotics industry ecosystem alliance based on "Built in USA." ABOUT FARADAY FUTURE Founded in 2014, Faraday Future (FF) is a U.S.-based Physical AI ecosystem company dedicated to reshaping the future of robotics and mobility solutions through AI innovation and technologies. FF focuses on two major product strategies within the Embodied AI (EAI) robotics business: EAI humanoid and bionic robots, and EAI automotive-focused robots. By building a "Four-Core Full-Stack AI" ecosystem of EAI Brain, Device, Industry Productivity Solutions and Developer Platform, and Data Factory, FF aims to create an evolutionary flywheel: scaled device delivery, data collection and training, continuous evolution of the EAI Brain, stronger product capability, and even larger-scale delivery and deployment. Through this flywheel, FF seeks to maximize its commercial value and lead to the advancement of Physical AI. For more information, please visit Faraday Future's official website: https://www.ff.com/ FORWARD LOOKING STATEMENTS This press release 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 press release, the words "plan to," "can," "will," "should," "future," "potential," 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 potential future legal actions against alleged illegal market manipulation or similar improper activities, and FF’s entry into the embodied AI robotics market and robotics deliveries and development, involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, which could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, 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 pay its outstanding obligations, which it currently lacks; the availability of sufficient share capital to meet its current obligations and execute on its strategy; the willingness of convertible debt investors to fund the Company ; demand for the Company’s robotics products; the ability of B2B preorder companies to locate customers to purchase our robotics products, on which their nonbinding preorders substantially depend; competition in the robotics industry, which includes companies with far superior experience, funding and name recognition; the ability of the Company to build an EAI education ecosystem that serves both the B2C consumer market and the B2B institutional education market; the acceptance by teachers and students of the Company’s robotics products in the education market; the ability of the Company to expand into additional markets for its robotics products; the Company’s reliance on a single OEM for most of its robotics products; the Company’s ability to get the planned robotics products to comply with all applicable U.S. rules and regulations; the ability of the robotics OEM to timely supply robotics to the Company; tariff uncertainty for imported products, particularly from China; demand from automobile dealers for robotics products; the Company's ability to homologate FX vehicles for sale; the Company’s ability to secure the necessary funding to execute on the FX strategy, which is substantial; the Company’s ability to secure an occupancy certificate covering all of its Hanford facility; the Company's ability to remediate its material weaknesses in internal control over financial reporting and the risks related to the restatement of previously issued consolidated financial statements; the Company’s limited operating history and the significant barriers to growth it faces; the Company’s history of substantial losses and expectation of continued losses; the success of the Company’s payroll expense reduction plan; 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 Company’s ability to cover future warranty claims; the success of other competing manufacturers; the performance and security of the Company’s vehicles; current and potential litigation involving the Company; 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 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 use its "at-the-market" program; insurance coverage; general economic and market conditions impacting demand for the Company’s products; potential negative impacts of a reverse stock split; potential cost, headcount and salary reduction actions may not be sufficient or may not achieve their expected results; circumstances outside of the Company's control, such as natural disasters, climate change, health epidemics and pandemics, terrorist attacks, and civil unrest; risks related to the Company's operations in China; 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 manufacturer; the Company's ability to develop and protect its technologies; the Company's ability to protect against cybersecurity risks; and the ability of the Company to attract and retain employees, any adverse developments in existing legal proceedings or the initiation of new legal proceedings, and volatility of the Company’s stock price. You should carefully consider the foregoing factors and the other risks and uncertainties described in the "Risk Factors" section of the Company’s Form 10-Q for the quarter ended March 31, 2026, filed with the SEC on May 14, 2026, and Form 10-K filed with the SEC on March 31, 2026, and other documents filed by the Company from time to time with the SEC. View source version on businesswire.com: https://www.businesswire.com/news/home/20260824748432/en/ Contacts Investors (English): [email protected] Investors (Chinese): [email protected] Media: [email protected]

Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 7:00 p.m. ET Global Director of Public Relations, Communications and Government Affairs - John Schilling Founder and Global CEO - Yueting Jia Operator: Greetings. Welcome to Faraday Future Second Quarter 2026 Earnings Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to John Schilling, Director of Public Relations, Communications and Government Affairs. Thank you. You may begin. John Schilling: Good evening, everyone, and thank you for joining Faraday Future's Second Quarter 2026 Earnings Call. My name is John Schilling, Global Director of Public Relations, Communications and Government Affairs at Faraday Future. Today, I am joined by our Global CEO, YT Jia. Before we begin, please note that today's discussion will include forward-looking statements based on current expectations and assumptions. These statements involve risks and uncertainties that could cause actual results to differ materially. We encourage you to review our SEC filings for a detailed discussion of these risks. We undertake no obligation to update forward-looking statements, except as required by law. Following prepared remarks, we will address a selection of stockholder questions submitted in advance. With that, I'll turn the call over to YT, our Founder and Global CEO. Yueting Jia: Thank you, John, and thank you for joining us here today. In today's call, I will provide an update on FF's second quarter 2026 results key progress from the second quarter through today and our outlook for the next stage of growth. The second quarter validated our core growth model where EAI devices serve as the entryway, real-world data as the fuel and the EAI Brain and developer platform as a driving engine. FF made a pivotal transition moving from strategic framework into execution, scaled delivery and commercial scenario deployment. Centered around our core pillars, we have established an initial closed-loop flywheel. Device deployment feeds real-world scenario data, which drives EAI Brain training, leading to skills and solution upgrades and ultimately fueling further device deployment on EAI robotics business. As of the end of the first quarter, second quarter and July 2026, cumulative sales and shipments totaled 22,242 and 394 units, respectively, demonstrating a continued upward trend in volume. Given the strong momentum, our annual shipment target has been updated to 2,000 units. To drive broader adoption, we also launched the EAI robotics education ecosystem for both B2C consumer and B2B education markets. By integrating robot bodies, AI programming curricula, developer tools, skills ecosystems and real interaction data led by entry-level products like FX Navi, we are lowering the barrier to Physical AI learning and empowering young learners to evolve from AI users into AI creators. Based on this progress, the company has completed the strategic upgrade to its Four-Core Full-Stack AI Ecosystem in the second quarter, further defining its development road map around 4 core pillars, the EAI Brain, EAI Devices, Industry Productivity Solutions and Developer Platform and the EAI Data Factory. All 4 pillars are now in active implementation. With the EAI Devices business already in commercial deployment and the EAI Brain, Data Factory and Industry Productivity Solutions and developer platform establishing their initial operating foundations. At the same time, these efforts position us well to proactively prepare for potential future ICTS-related regulatory developments. Meanwhile, we continue to advance our Built In USA strategy, accelerating the development of U.S. domestic robotics manufacturing capabilities and a trusted robotics industry value chain. Leveraging the strategic market window created by the recent FCC policy, we are accelerating the establishment of a U.S.-centered robotics ecosystem further strengthening FFAI's strategic leadership position in the U.S. embedded AI robotics industry. Looking ahead, we remain committed to advancing the development of America's embedded AI robotics industry and reinforcing the United States global leadership in embedded AI and robotics. Now let me now walk through our product technology and business update. In the second quarter of 2026, we upgraded our robotic strategy to continue establishing targeted commercial execution. Our strategy evolved from 3-in-1 ecosystem to the Four-Core Full-Stack AI Ecosystem by adding Industry Productivity Solutions and Developer Platform as the fourth core alongside the EAI Brain, EAI Devices and EAI Data Factory. Let's dive into each of these core solutions individually. Let's begin with the EAI Brain. Under our One Brain, Multiple Forms architecture, the EAI Brain serves as the core intelligence layer. During the quarter, we made significant progress across multiple fronts. We completed the initial development of our core technology framework for the embedded AI robot Brain, establishing a comprehensive stack that encompasses AI interaction, vision language action, VLA models, robotic manipulation and whole body motion control. Leveraging NVIDIA GR00T, we are continuously advancing VLA model fine-tuning and training on real robot data. Following the NVIDIA SONIC road map, we are making steady progress in whole body motion control R&D. In the latest phase of testing, our whole body motion model achieved a motion tracking success rate of approximately 98% on standard simulation benchmarks, validating FFAI's ability to rapidly integrate cutting-edge global AI technologies and enable cross-platform migration and autonomous adaptation across different robot form factors. In parallel, we completed the initial basic capabilities for our universal teleoperation swam control platform, enabling unified management across diverse hardware configurations. On the algorithmic side, world model training on Dream Zero reached key phase milestones to improve predictive control. We also launched our official robot control app on the iOS App Store and successfully completed an automated control demonstration for our self-developed security software. Collectively, these efforts have preliminarily established the foundational architecture and core enablers, including teleoperation and fleet management necessary to support large-scale robot deployment in the future. Turning to the physical touch point of our technology, the EAI Devices. We believe FF has established an early commercial leadership position in the U.S. embedded AI robotics market supported by growing sales and deployments across multiple robot form factors. As of the end of the second quarter, cumulative sales and shipments totaled 242 units, increasing to 394 units by the end of July. All deliveries maintained our strict standard of payment before delivery with positive product gross margins. We have also advanced the tradition cooperation with the Triple I Group and Sequoia Education Group to deploy robots in educational settings. On the distribution side, RobotShop, one of the leading robotic-focused e-commerce platforms, completed procurement evaluations and confirmed drop shipping support, while channel expansion with DSMA progressed. We recently launched our 3-phase Built in USA acceleration program in alignment with recent FCC guidance on robot compliance. Moving from localized AI platform to assembled in the U.S.A. and ultimately made in the U.S.A., this initiative strengthens our domestic supply chain. To directly catalyze hardware sales, AIxCrypto Holdings, Inc., an independent public listed company controlled by FF AIxC designated RoboShare as its top operating priority for the second half of the year. Debuted at Automate 2026, AIxC provides the protocol, identity and settlement layers, while FFAI acts as a lead hardware and asset foundation. This model unlocks continuous utilization, extended use and network value after the sale. We have also onboarded our previously sold and newly purchased robots onto RoboShare under custody agreements, allowing us to effectively transform our robots into income-generating assets, lowering total cost of ownership for buyers and directly driving new FFAI terminal sales. Moving on to the EAI Data Factory, the financial engine and fuel of our 4-pillar AI ecosystem. This core layer has formed a complete commercial closed loop, generating initial sample payments and positioning the segment for significant profit growth. Our primary customers' potential order value could reach over $400,000 at the high end and price negotiations remain ongoing with a top-tier data company. To expand operational scale, we engaged over 20 supplier partners and reached initial agreements with 2 partners for Southeast Asia data collection sites. On the software side, the centralized collection tools were completed and deployed on the robotics units, where centralized collection and upload software was demonstrated at Automate in June. HQ collection expanded across 3 scenarios using futurist Faber S1 and Faber T1 units, supported by self-developed remote teleoperation software optimized for Faber. Finally, turning to Industry Productivity Solutions and the Developer Platform, converting our Full-Stack AI into tailored complete solutions. The Industry Productivity Solution strategy will initially focus on 4 major market segments: education, industrial applications, security and inspection and other existing markets. We will accelerate the development and delivery of complete solutions tailored to the distinct real-world needs of each industry. Within Education, we established California's first education innovation lab in cooperation with leading partner institutions. For the Developer Platform, we completed a full business closed loop, deploying our EAI Soul framework, Brain Block modular architecture, open SDK and API interfaces in the second quarter. We officially launched the FF EAI Robotics Open Source and Open Developer Platform, featuring both General and Youth Developer Editions alongside Four-Core developer tools. Redwood Education joined as a flagship ecosystem partner, generating hardware sales and establishing a benchmark organization for educational development. The developer community now covers key segments, including individual developers, educational institutions, secondary development companies, youth developers and security/inspection solution providers. The platform has built a robust ecosystem pipeline with over 20 qualified developer organizations and industry partners under active engagement. Subsequent to the quarter, the Developer Platform continued its expansion and multiple developers identified clear needs for robot purchases, testing and real-world deployment. The developer platform is progressively building an end-to-end business conversion pipeline from developer acquisition and skill solution development to robot sales and scaled deployment. On product planning, the road map has been refined to include general use and dedicated skill stores, end-to-end technical validation and system optimization have been completed across the full workflow from onboarding and tools to skill development, publishing, deployment and robot execution. These efforts have notably enhanced functionality, stability and developer experience, laying a solid foundation for scaling developer onboarding, accelerating skill creation and expanding the ecosystem. Now let me walk through our financial results for the second quarter and the first 6 months of 2026. For the second quarter of 2026, total revenue reached $836,000, representing an increase of over 1,500% compared to $54,000 in the second quarter of 2025 and a 64% increase compared to $512,000 generated in the first quarter of 2026. For the first 6 months of 2026, cumulative revenue grew to $1.35 million compared to $370,000 in the prior year period. This growth was primarily driven by scaling product deliveries within our EAI Robotics segment, where we continue to achieve positive product gross margins. This top line momentum reflects accelerating commercial adoption across our robotics portfolio. By exceeding our first half shipment targets, we are demonstrating clear market traction and validating the strength of our Device, Data, Brain evolutionary flywheel. Our total cost of revenue and operating expenses saw material optimization during the period. Cost of revenue for the second quarter totaled $11.54 million, down 57% compared to $26.91 million in the second quarter of 2025, marking a year-over-year reduction of $15.37 million. For the first 6 months of 2026, cost of revenue was $23.4 million compared to $48.3 million in the first 6 months of 2025. Driven by this structural cost optimization and higher revenue contribution, our quarterly gross loss narrowed substantially to $10.7 million from $26.9 million in the second quarter of 2025. As a result of these operational efficiencies and cost controls, our net loss for the second quarter narrowed by 69% year-over-year to $38.96 million, an $85.71 million improvement compared to the $124.7 million net loss reported in the second quarter of 2025. Net loss attributable to Faraday Future stockholders was $36.03 million for the quarter. For the first 6 months of 2026, our cumulative net loss stood at $81.3 million compared to $135 million in the same 6-month period of 2025. These improvements reflect management's commitment to strict financial discipline under our Five Key Transformations framework and stockholder-first philosophy, systematically driving down operating burn while building a clear path towards sustainable profitability. Turning to our balance sheet. As of the end of the second quarter, total liabilities were approximately $278 million, representing a decrease of approximately $61 million from $340 million at the end of the second quarter of 2025. During the 3 months ended June 30, 2026, the company completed 2 additional financing transactions. On April 17, 2026, the company issued the secured notes for an aggregate purchase price of $45 million and an aggregate original principal amount of approximately $45.8 million. On May 15, 2026, the company issued the 2026 May convertible SPA notes for aggregate funded proceeds of $25 million and an aggregate unpaid principal balance of $27 million. Of the aggregate proceeds from these financings, $42.5 million was deposited into accounts subject to deposit account control agreements and was classified as restricted cash as of June 30, 2026. Excluding the liability for these new funding, the actual debt reduction exceeded $100 million. Total stockholders' equity remained positive at $1.41 million as of June 30, 2026. Importantly, during the quarter, we successfully completed $20 million in debt resolution. Vigorously resolving these liabilities is a deliberate effort to free our robotics business from historical baggage and legacy debt burdens, allowing it to travel light with a lean capital footprint and align market valuation with its stand-alone intrinsic worth. In terms of cash flows, net cash used in operating activities for the first 6 months of 2026 was $56.5 million. Concurrently, net cash provided by financing activities for the first 6 months of 2026 reached $76.37 million, up $21.3 million year-over-year compared to $55.1 million in the first 6 months of 2025. Let's move on to our capital markets updates. During the second quarter and subsequent weeks of July, we executed a series of decisive capital markets initiatives aimed at securing near-term operating liquidity, simplifying our capital structure and keeping our listing status. On the financing front, we successfully secured $70 million in cumulative new institutional commitments in the second quarter, combined with our asset-light robotics deployment model. This funding provides the capital runway required to support our Phase 1 EAI robotics operational targets through the end of 2026. In July, we took aggressive steps to restructure existing agreements and curb potential equity dilution. On July 8, we executed warrant termination agreements with investors to permanently cancel roughly 5.36 million Class A warrants. This brings our cumulative permanent warrant cancellations to approximately 49.9 million units since December 2025, substantially streamlining our capital structure and eliminating future overhang. Furthermore, on July 9, we amended and restated our $82 million convertible note agreement. The revised structure splits the remaining second closing into 8 manageable tranches tied to incremental funding milestones of at least $5 million each, eliminates warrant issuances for the vast majority of participating investors and removes VWAP-based pricing conditions. This amendment accelerates the drawdown of committed capital while significantly curbing dilution risks. Subsequent to quarter end, we received $1.5 million in gross proceeds under this facility and converted $3.9 million in principal and $0.6 million in interest into 127,490 Class A shares. We further commit that subject to compliance with applicable laws and contractual obligations, we will set a conversion floor price of $5 per share for all outstanding convertible notes. To date, with the exception of certain notes for which a floor cannot be fixed, such amendments are effective with respect to notes representing about 90% of our target. Regarding our listing status to satisfy Nasdaq's minimum bid price requirement and protect our listing status for our stockholders, the Board approved a 1-for-150 reverse stock split, which became effective on July 24, 2026. Following this corporate action, we formally received confirmation from Nasdaq that the company has regained full compliance with the minimum bid price requirement. Going forward, we remain committed to optimizing our financing structure, aligning our capital structure with our operational milestones and rebuilding long-term market confidence. Now let's discuss our recent progress on our AI system and corporate governance. In the second quarter of 2026, we continued to advance our company-wide AI governance framework. Solidifying our foundation as an AI-native intelligent enterprise. By accelerating our AI-first culture and upgrading our AI-driven product, production, technology and intelligence system, we refined our management structure to cover AI application governance, risk classification, token cost visualization and complete life cycle data management. Furthermore, we deepened AI integration across core operational processes, driving measurable progress in workflow automation, productivity evaluation, task tracking, and cross-departmental knowledge management to continuously optimize organizational efficiency. On compliance and internal controls, we systematically elevated our risk management, cybersecurity governance and information disclosure systems. These optimization strengthen privacy controls, improve cross-functional auditability and enhance the reliability and transparency of our financial reporting. By reinforcing these corporate governance controls, we ensure regulatory adaptability and strategic alignment as we scale our business and build long-term trust in the capital markets. With that, let's dive into the outlook for the rest of 2026. As we move through the rest of the year, we are executing across our Five Key Transformations spanning finance, strategy, technology and business, capital and AI system. With our robotic strategy upgraded to a Four-Core Full-Stack AI Ecosystem, our focus centers on scaling commercial revenue, reducing total liabilities and establishing a disciplined path towards long-term financial sustainability. Moving into the second half of 2026, our financial strategy is focused on establishing a sustainable revenue model and achieving balanced optimization through 3 primary pillars: revenue and ecosystem growth: accelerate the growth of all businesses across our Four-Core Full-Stack AI Ecosystem strategy, driving continued revenue expansion and steady improvement in overall gross margin driven primarily by commercial device shipments and accelerating monetization of our EAI robotics ecosystem. Liability reduction: we reemphasized our clear debt resolution target to reduce total company liabilities to under $100 million within the next 3 to 4 quarters, providing continued support for the growth of our robotics business. Operating cash flow optimization: we are building a differentiated growth model based on our strategic upgrades to continuously optimize operating cash flow. This approach supports near-term cash flow generation with limited additional capital investment while backing our long-term ecosystem expansion. Second, on our strategic outlook, the FCC's new policy marks a pivotal shift in the U.S. embedded AI robotics industry, ushering in a new competitive era defined by domestic manufacturing, trusted supply chains, enterprise AI, EAI, real-world data and open ecosystems. FF is uniquely positioned to capitalize on this historic strategic opportunity through its 7 core competitive advantages, the Full-Form factor, FF EAI Robot World built around 6 major product series and the One Brain, Multiple Forms and Multiple Forms, Multiple Capabilities strategies. The Four-Core Full-Stack AI Ecosystem, integrating the EAI Brain, EAI Devices, Industry Productivity Solutions and Developer Platform and EAI Data Factory is a 5+1 ecosystem-based direct sales and user co-creation system key customer touch points. Its compliance capabilities as a U.S.-based company is data-driven evolutionary flywheel powered by large-scale deployment and real-world data, its asset-light operationally lean financial model focused on positive product gross margins and payment before delivery discipline and its differentiated capital value supported by FF's Nasdaq-listed platform and the potential stand-alone value unlocking path for its robotics business. Looking ahead, FF is committed not only to delivering superior robotic products, but also to building the most open, comprehensive and continuously evolving enterprise AI robotic ecosystem platform in the United States. By continuously strengthening our technology and business flywheels through real-world scenarios, real-world data and real-world value, we aim to drive the upgrade and advancement of the U.S. embedded AI robotic industry and generate sustainable long-term value for our customers, partners, stockholders and the broader industry. Third, on our product, technology and business outlook. At the operational level, the company remains committed to its full year shipment target of 2,000 robots while accelerating momentum in data services and industry solutions to further expand delivery scale and drive commercialization around the Four-Core Full-Stack AI. On the EAI Devices front, we are accelerating deployment across key verticals, including education, industrial and security/inspection, continuously expanding the robotics product portfolio and scaling commercial deliveries. The EAI automotive business remains one of FF's core businesses and an important component of the company's overall EAI strategy. The company will proceed with a highly disciplined and prudent approach, strictly aligning the pace of execution and capital deployment with the availability of dedicated funding and will not accelerate the business unless and until sufficient funding has been secured. Meanwhile, FF will align its execution with the development plans and the progress of its strategic partners. On the EAI Brain front, the company expects to further deepen the integration of NVIDIA's technology stack with FF's proprietary EAI Brain robotics platform and data infrastructure over the course of this year. We will continue advancing the group training and validation on embedded AI capabilities, including complex grasping and multi-step manipulation while driving SONIC technology from simulation-based training towards full body robot control on real hardware and cross-platform migration across different robot form factors. On the EAI Data Factory front, the company will further close the complete loop encompassing real-world robot data collection, training, evaluation, deployment and continuous learning. This will accelerate the formation of a self-reinforcing flywheel: Device to Data to Brain to Solution to Device, and build an embedded AI technology framework that is quantifiable, continuously iterable and scalable across diverse robot morphologies, providing core technical support for the ongoing evolution of our autonomous EAI Brain, industry solutions, and the broader Four-Core Full-Stack AI Ecosystem. The EAI Data Factory is expected to reach monthly production capacity of 2,100 qualified real-world data collection hours by the end of August, 20,000 hours by the end of December and a total of 50,000 hours of data collection for the full year. On the Industry Productivity Solutions and Developer Platform front, we are building standardized, replicable and scalable industry solutions to enhance customer value and return on investment or ROI, with planned geographic expansion across California, Texas and the Eastern U.S. within the year. Concurrently, we are continuously strengthening the developer ecosystem by opening up robot capabilities, skills and industry application platforms to attract more developers and partners to co-build the robotics application ecosystem. For the Developer Platform, we completed a full business closed loop, deploying our EAI Soul framework, Brain Block modular architecture, open SDK and API interfaces in the second quarter. We officially launched the FF EAI Robotics Open Source and Open Developer Platform, featuring both General and Youth Developer Editions alongside four core developer tools. For the remainder of 2026, we are continuing to streamline our product portfolio to prioritize robotic products with clear commercialization potential and positive unit economics, supported by expanding demand across our key use cases, specifically education. By the end of 2026, we aim to ship 2,000 EAI robot units, expand our portfolio to 100 skills and grow our developer community to 200 members. Together with real-world data collection across multiple use cases, these efforts will lay a solid foundation for larger-scale shipments and broader data collection in the years ahead. Fourth, turning to our capital outlook. FF is seizing a major opportunity in the robotics market and our EAI ecosystem is making solid progress, yet our improved fundamentals and robotic potential are not reflected in our stock price, which remains driven by market sentiment. We believe the root cause is that the market continues to price FF on historical burdens and dilution concerns, not on our prospects. To address this, we are executing a comprehensive capital value restoration program focused on unlocking robotic value, optimizing capital structure, resolving legacy debt and strengthening operations. First, we are exploring stand-alone financing and public listing opportunities for our robotics segment. This would secure dedicated growth capital for our AI ecosystem while reducing dilution at the FFAI level, delivering direct value to our stockholders. Second, we do not want legacy debt from our post-IPO automotive history to constrain our early-stage high-growth robotic strategy. As mentioned in the finance outlook with supplier and creditor support, we plan to reduce total liabilities to below $100 million over 3 to 4 quarters, improving our balance sheet and supporting robotics growth. New funds raised will be primarily deployed to support robotics business development rather than to service historical liabilities. Third, we are exercising strict financing discipline. Subject to counterparty negotiations, we intend to accelerate our exploration of the shift from convertible notes to equity structures, prioritizing higher offering prices and reducing discounts and warrant coverage. For notes, we are locking in conversion floors and cutting daily conversions to protect equity. ATM sales will occur at higher, more favorable prices. Fourth, and fundamentally, we are driving robotics revenue growth and controlling costs to reduce external financing needs and advance our long-term debt reduction targets. Lastly, let's look at our AI system outlook. Looking ahead, we are accelerating our transition into an AI native enterprise across our management, financial and compliance systems. In our management system, we are expanding AI deployment across end-to-end operations, including R&D, manufacturing, supply chain and user acquisition, moving from AI-assisted workflows toward the full process automation and intelligent decision-making to maximize operating leverage. Within our financial and compliance system, we are embedding AI capabilities to enable dynamic real-time decision guidance, token cost tracking and auditable financial workflows. Simultaneously, we are systematically refining our internal controls, cybersecurity and information disclosure frameworks. These measures ensure complete regulatory adaptability, safeguard operational integrity and reinforce long-term capital market confidence. We are entering a pivotal phase of commercial execution, regulatory alignment and capital discipline, powered by our Four-Core Full-Stack AI Ecosystem. Our Phase 2 Built in USA manufacturing road map and our comprehensive capital value restoration plan, we are actively driving organic revenue growth, reducing legacy liabilities and unlocking the intrinsic market value of our physical AI business. We firmly believe that the rigorous execution of our Five Key Transformations will systematically elevate our operational leverage, strengthen capital market trust and decisively realign our valuation with the long-term intrinsic value of our technology platform. To conclude, I will now hand the call over to John for the Q&A session. John Schilling: Thank you, YT. We would now like to open the floor for Q&A. One, what strategic opportunities does the FCC's new policy present for FF? Yueting Jia: On July 28, 2026, the U.S. Federal Communications Commission, FCC added advanced robotic equipment, including humanoid and quadruped robots manufactured outside the United States to its covered list. Foreign manufacturers and component suppliers will face substantially higher compliance costs, extended timelines and increased legal risks, which in turn will incentivize them to seek deeper collaboration with U.S.-based companies. Management believes that this regulatory shift is highly aligned with FF's Built in USA strategy and presents a critical structural opportunity for the company. As the first U.S. company to achieve commercial deliveries of both humanoid and bio-inspired robots, FF has already established and continuously iterated its core R&D and operations for the EAI Brain, Data Factory, Industry Productivity Solutions and Developer Platform entirely within the United States. Data collection and storage are strictly conducted in compliance with domestic requirements, giving FF inherent advantages in data security, cybersecurity and model training. Leveraging its industry bridge strategy, FF effectively connects the U.S. market, global capital, cutting-edge technologies and mature international supply chains. Capitalizing on this policy window, the company has formally launched the Built in USA acceleration program for its EAI robotics business to be executed in 3 phases: Phase 1, preliminary deployment completed, the EAI Brain, Industry Productivity Solutions and Developer Platform and Data Factory are now operational, laying the technical groundwork for ongoing core development and proactively preparing for potential future ICTS-related regulations. Phase 2, accelerate U.S. local assembly of robot units and FCC compliant components assembled in U.S.A. with the goal of achieving domestic production on a shorter timeline and greater efficiency. This includes evaluating the conversion of our Hanford facility and exploring new site selections. Phase 3, ultimately achieve U.S. manufacturing made in U.S.A. of complete robot units and certain components that fall under the FCC covered list. John Schilling: Two, as the embodied AI industry rapidly evolves, how does FF plan to sustain its first-mover advantage? Yueting Jia: With the continued refinement of industry standards, declining costs and expanding application scenarios, the robotics sector is expected to enter a phase of accelerated growth. FF has built a closed-loop ecosystem centered on 3 core pillars: hardware, the brain and open platform and data factory. This ecosystem operates through a positive flywheel deployment, real-world data collection, model evolution, skill enhancement and incremental deployment, continuously elevating intelligence levels and driving towards large-scale commercialization. High-quality real-world data is essential for training embedded AI. Our 2026 shipment target is 2,000 robots, encompassing both humanoid and bio-inspired models distributed across multiple cities and diverse user scenarios to capture rich authentic operational data. From our initial deliveries at the end of February through the end of July, we have cumulatively sold and shipped 394 units, and we remain in a steady ramp-up phase. Our data assets are growing consistently, and we are leveraging this early data advantage to continuously refine the technical architecture of both the robotic brain and cerebellum, building a replicable and scalable ecosystem tailored to the U.S. market. Furthermore, the recently announced FCC robotics policy has opened a critical market window that will help FF reinforce its first-mover position, accelerate market share expansion and strengthen brand recognition and customer loyalty. John Schilling: Three, before achieving positive operating cash flow, how does FF plan to balance financing needs and share dilution? Yueting Jia: The company intends to progressively reduce its reliance on expensive short-term debt and transition toward a funding structure anchored in operating cash flow, industrial partnerships and long-term capital. Specific measures include operational optimization. By executing our strategic plan, we aim to increase revenue scale while tightening cost and expense controls, thereby steadily improving operating cash flow and lessening dependence on external financing. We have established core financial targets covering gross margin, operating cash flow and debt reduction. Financing mix adjustment. Subject to negotiations with relevant counterparties, we will seek to replace convertible note financings with equity-based structures where feasible and explore stand-alone financing for our robotics business to further reduce dilution at the FFAI level. Any new capital raise will be primarily deployed to support robotics business development rather than to service historical liabilities. Setting our conversion floor in compliance with applicable laws and contractual obligations, we plan to establish a minimum conversion price of no less than $5 per share for our outstanding convertible notes. This mechanism provides a clear ceiling on potential dilution from such instruments and helps stabilize market expectations. Through these measures, the company aims to gradually shift from a financing-driven model to one powered by operating cash flow. John Schilling: Four, why has the company set a debt reduction target at this stage? Yueting Jia: We, together with our investors who are bullish on FF's robotics business and our industry partners do not wish to see this early-stage high-growth robotics strategy constrained by the historical liabilities stemming from our post-IPO legacy and automotive operations since 2021. We firmly believe that the true value and commercial potential of our EAI robotics business are significantly higher than what is currently reflected in Faraday Future's market capitalization. To unlock this value, our debt resolution program advances along 2 parallel tracks, combining operating debt reduction with capital structure liability optimization. Through rigorous financial reconciliations, legal settlements, commercial negotiations and warrant cancellations, we are systematically clearing historical operating burdens while establishing long-term debt management and internal control mechanisms. Building on the $20 million in debt resolution completed during the second quarter, these integrated efforts continuously improve our net equity position as we advance towards our road map target of reducing total liabilities to under $100 million over the next 3 to 4 quarters. Removing these legacy obligations across both operating and capital levels creates a cleaner, highly flexible balance sheet that enables our robotics business to move forward with a lighter legacy burden, accelerate commercial deployment and unlock long-term value for our stockholders. Operator: This concludes today's conference. You may disconnect your lines at this time, and thank you for your participation. Before you buy stock in Faraday Future Intelligent Electric, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Faraday Future Intelligent Electric wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $432,621!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,314!* Now, it’s worth noting Stock Advisor’s total average return is 973% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 20, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Faraday Future (FFAI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Transitioned from a strategic framework to active execution of the Four-Core Full-Stack AI Ecosystem, integrating the EAI Brain, Devices, Industry Solutions, and Data Factory. Established a closed-loop flywheel where device deployment generates real-world data to train the EAI Brain, which in turn drives further robotics deployment. Achieved positive product gross margins on all robotics deliveries by maintaining a strict 'payment before delivery' discipline. Launched the 'Built in USA' acceleration program to capitalize on FCC regulatory shifts, aiming to secure a trusted domestic robotics supply chain. Optimized the cost structure, reducing cost of revenue by 57% year-over-year through structural efficiencies and management's 'Five Key Transformations' framework. Prioritized the robotics segment as the primary growth engine, utilizing an asset-light model to minimize the capital footprint required for scaling. Integrated AI-native governance across the enterprise to automate workflows and enhance decision-making transparency for capital markets. Updated the annual shipment target to 2,000 robotics units for 2026, supported by expansion into education, industrial, and security verticals. Aims to reduce total company liabilities to under $100 million within the next 3 to 4 quarters to decouple the robotics business from legacy automotive debt. Plans to reach 50,000 hours of real-world data collection by year-end 2026 to accelerate VLA model fine-tuning and autonomous adaptation. Adopting a 'disciplined and prudent' approach to the EAI automotive business, stating it will not accelerate without dedicated, sufficient funding. Exploring stand-alone financing and public listing opportunities for the robotics segment to unlock intrinsic value and reduce dilution at the parent level. Completed a 1-for-150 reverse stock split in July 2026 to regain compliance with Nasdaq's minimum bid price requirement. Executed warrant termination agreements to cancel approximately 49.9 million units since December 2025, aimed at curbing equity overhang. Implemented a $5.00 per share conversion floor for approximately 90% of outstanding convertible notes to protect stockholders from excessive dilution. Identified the FCC's inclusion of foreign-made robots on its 'covered list' as a strategic tailwind for FF's domestic manufacturing roadmap. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management views the FCC's covered list as a structural advantage that increases compliance costs for foreign competitors while validating FF's U.S.-based R&D. The company is accelerating a three-phase plan: moving from localized AI platforms to U.S. assembly, and eventually full U.S. manufacturing of components. FF is leveraging its early delivery lead to capture 'rich authentic operational data' across diverse scenarios, which is essential for training the robotic brain. The strategy focuses on a 'One Brain, Multiple Forms' architecture to allow rapid cross-platform migration of AI skills across different robot types. The company is shifting away from convertible notes toward equity-based structures and stand-alone robotics financing to isolate dilution. Management committed that new capital will be deployed for robotics growth rather than servicing historical automotive-related liabilities. Management stated that the robotics business's true value is obscured by 'historical baggage' and legacy debt from post-IPO automotive operations. Reducing total liabilities to under $100 million is intended to create a 'cleaner, highly flexible balance sheet' to attract robotics-specific investors.

This article first appeared on GuruFocus. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Revenue surged over 1,500% year-over-year to $836,000 in Q2 2026, driven by scaling eAI robotics deliveries. Net loss narrowed by 69% year-over-year to $38.96 million, reflecting improved cost controls and operational efficiencies. Cumulative robot shipments reached 394 units by end of July, with an updated annual target of 2,000 units. Launched a four-core full-stack AI ecosystem, including the eAI Brain, Devices, Data Factory, and Developer Platform, all now in active implementation. Completed $20 million in debt resolution and reduced total liabilities by $61 million year-over-year, with a target to cut liabilities below $100 million in 3-4 quarters. Secured $70 million in new institutional commitments and implemented measures to curb dilution, including warrant cancellations and a $5 conversion floor on convertible notes. Regained Nasdaq compliance with minimum bid price requirement following a 1-for-150 reverse stock split. Benefiting from new FCC policy on robotics, which aligns with the company's 'Built in USA' strategy and creates a competitive advantage. eAI Data Factory is generating initial sample payments, with potential order value exceeding $400,000 from a top-tier data company. Developer platform has over 20 qualified developer organizations and partners, with a full business closed loop established. Still reporting significant net losses, with a cumulative net loss of $81.3 million for the first half of 2026. Total liabilities remain high at approximately $278 million, despite recent reductions. Operating cash flow remains negative, with net cash used in operating activities of $56.5 million in the first half of 2026. The company relies heavily on external financing, including convertible notes and ATM sales, which could still lead to dilution. The reverse stock split (1-for-150) indicates a low stock price and potential concerns about maintaining listing standards. The eAI automotive business is being deprioritized, with execution strictly tied to dedicated funding availability. The company's stock price is not reflecting its fundamentals, indicating a lack of market confidence. The company has a history of legacy debt from its automotive operations, which continues to burden the balance sheet. The annual shipment target of 2,000 units is ambitious given only 394 units shipped by end of July, implying a significant ramp-up needed. The company's future growth is heavily dependent on regulatory changes (FCC policy) and successful execution of its 'Built in USA' strategy, which carries execution risks. Warning! GuruFocus has detected 8 Warning Signs with FFAI. Is FFAI fairly valued? Test your thesis with our free DCF calculator. Q: What strategic opportunities does the FCC's new policy present for FF? A: Global CEO YT Jha stated that the FCC's July 28, 2026 addition of advanced robotic equipment to its covered list creates a critical structural opportunity. The policy raises compliance costs and legal risks for foreign manufacturers, incentivizing collaboration with U.S. companies. FF, as the first U.S. company to commercially deliver humanoid and bio-inspired robots, is leveraging its "Built-in USA" strategy through a three-phase acceleration program: preliminary deployment of its eAI Brain and Data Factory, accelerating U.S. local assembly (including evaluating the Hanford facility), and ultimately achieving full "Made in USA" manufacturing of FCC-covered components. Q: As the embodied AI industry rapidly evolves, how does FF plan to sustain its first-mover advantage? A: CEO YT Jha explained that FF's closed-loop ecosystemhardware, brain/open platform, and data factoryoperates on a positive flywheel of deployment, real-world data collection, model evolution, and skill enhancement. With a 2026 shipment target of 2,000 robots across diverse scenarios, FF is accumulating high-quality real-world data to refine its robotic brain architecture. The FCC policy window further reinforces its first-mover position by accelerating market share expansion and brand loyalty. Q: Before achieving positive operating cash flow, how does FF plan to balance financing needs and share dilution? A: CEO YT Jha outlined a multi-pronged approach: progressively reducing reliance on expensive short-term debt, increasing revenue scale while tightening cost controls, and transitioning toward equity-based structures where feasible. The company plans to set a minimum conversion floor of $5 per share for outstanding convertible notes to cap dilution, explore standalone financing for its robotics business to reduce FFAI-level dilution, and deploy new capital primarily toward robotics development rather than servicing historical liabilities. Q: Why has the company set a debt reduction target at this stage? A: CEO YT Jha emphasized that investors and partners do not want the early-stage high-growth robotics strategy constrained by legacy automotive liabilities from 2021. The debt resolution program advances on two tracks: operating debt reduction and capital structure optimization. Building on $20 million in debt resolution completed in Q2, the company targets reducing total liabilities to under $100 million within three to four quarters, creating a cleaner balance sheet to unlock the intrinsic value of the robotics business. Q: What were the key financial results for Q2 2026? A: CEO YT Jha reported total revenue of $836,000, a 1,500% increase year-over-year and a 64% increase quarter-over-quarter, driven by scaling EAI robotics deliveries with positive product gross margins. Cost of revenue dropped 57% year-over-year to $11.54 million, and net loss narrowed by 69% to $38.96 million. Total liabilities decreased by $61 million year-over-year to $278 million, and the company completed $20 million in debt resolution during the quarter. Q: What is the status of the eAI Data Factory and its commercial progress? A: CEO YT Jha stated that the eAI Data Factory has formed a complete commercial closed loop, generating initial sample payments. A primary customer's potential order value could reach over $400,000, with price negotiations ongoing. The company has engaged over 20 supplier partners and reached initial agreements for Southeast Asia data collection sites. Production capacity is expected to reach 2,100 qualified data collection hours by end of August, 20,000 hours by end of December, and 50,000 hours for the full year. Q: How is the developer platform contributing to the ecosystem? A: CEO YT Jha highlighted that the developer platform completed a full business closed loop in Q2, deploying the eAI SOL framework, brain block modular architecture, open SDK, and API interfaces. The platform has over 20 qualified developer organizations under active engagement, with Redwood Education joining as a flagship ecosystem partner. The company aims to grow the developer community to 200 members and expand the portfolio to 100 skills by end of 2026. Q: What capital market actions were taken to protect listing status and curb dilution? A: CEO YT Jha detailed several actions: permanent cancellation of approximately 49.9 million Class A warrants since December 2025, amendment of the $82 million convertible note agreement to split into eight tranches with reduced warrant issuances and no VWAP-based pricing, and a 1-for-150 reverse stock split effective July 24, 2026, which restored Nasdaq compliance. The company also secured $70 million in new institutional commitments in Q2. Q: What is the outlook for the eAI automotive business? A: CEO YT Jha stated that the eAI automotive business remains a core business and important component of the overall eAI strategy. However, the company will proceed with a highly disciplined approach, strictly aligning execution pace and capital deployment with the availability of dedicated funding. The business will not accelerate unless and until sufficient funding has been secured, aligning with strategic partner development plans. Q: What are the key milestones for the eAI Brain technology? A: CEO YT Jha reported that the whole-body motion model achieved approximately 98% motion tracking success rate on standard simulation benchmarks. The company completed initial development of its core technology framework, including VLA models and robotic manipulation, leveraging NVIDIA G-Root for model fine-tuning. FF expects to deepen NVIDIA technology integration, advance complex grasping and multi-step manipulation, and drive Sonic technology from simulation to real hardware control. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Revenue surged to $836,000 in Q2 2026, a YoY 1,400%+ from $54,000 in Q2 2025, $1.35 million revenue in H1 2026 driven by expanding commercial deliveries and positive robot margins; cost of revenue dropped 57% YoY to $11.54 million and net loss narrowed 69% YoY to $38.96 million. FF officially upgraded its robotics roadmap to the FF EAI "Four-Core Full-Stack AI" Ecosystem Strategy, integrating the EAI Brain, EAI Devices, Industry Productivity Solutions and Developer Platform, and EAI Data Factory, reflecting a vital market shift from standalone robotic hardware toward full-system, productivity-driven enterprise solutions. By the end of the second quarter, the Company had reduced liability by more than $100 million year over year and plans to further accelerate debt reduction. FF has begun implementing a comprehensive debt-resolution plan to address legacy obligations, strengthen its balance sheet, and enable the robotics business to operate with greater flexibility and unlock its underlying capital-market value quickly. The Company generated $76.37 million in net cash inflows from financing activities for the first six months of 2026, securing the operating runway needed to solidify its first-mover advantage in robotics, while advancing its Capital Value Restoration Plan to optimize its capital structure, significantly curb equity dilution, reduce liabilities, and officially regain full Nasdaq listing compliance. Across its Four-Core Full-Stack AI Ecosystem, the Company expects to deepen the integration of NVIDIA’s technology stack with FF’s proprietary EAI Brain, robotics platform, and data infrastructure this year, advancing GR00T training and validation on embodied AI capabilities. The EAI Data Factory is expected to reach a monthly capacity of 2,100 qualified real-world data collection hours by the end of August and 20,000 hours by the end of December, for a full-year total of 50,000 hours. In Industry Productivity Solutions and the Developer Platform, the Company plans to scale standardized, replicable industry solutions across California, Texas, and the Eastern U.S. while opening robot capabilities, skills, and application platforms to a broader base of developers and partners. Building on the launch of the FF EAI Robotics Open Source and Open Developer Platform, the Company expects to build a portfolio of 100 skills, and a developer community of 200 members by the end of 2026. Looking ahead, potentially benefiting from the new FCC policy environment, the Company is focused on establishing a sustainable revenue model and optimizing its balance sheet: driving continued revenue expansion and steady gross margin improvement across the Four-Core Full-Stack AI Ecosystem, led by commercial device shipments and accelerating monetization of the EAI robotics ecosystem; targeting cumulative shipments of more than 2,000 EAI robot units by year-end; and reducing total company liabilities to under $100 million within the next three to four quarters. LOS ANGELES, August 13, 2026--(BUSINESS WIRE)--Faraday Future Intelligent Electric Inc. (Nasdaq: FFAI) ("FF", "Faraday Future", or the "Company"), a California-based global Embodied AI (EAI) ecosystem company, today announced financial results for its second quarter ended June 30, 2026, and provided updates on key operational and strategic developments. "The second quarter of 2026 marked a major milestone as our robotic business is entering a new phase of revenue acceleration, with our strategy fully evolved into the ‘Four-Core Full-Stack AI’ ecosystem, cementing Faraday Future’s leading position in the U.S. Embodied AI robotics market," said YT Jia, Global CEO of Faraday Future. "Driven by our ‘Built in USA’ initiative, localized data security, and full FCC policy alignment, we expanded our commercial scale while converting our technological first-mover advantage into market volume dominance. We have regained full Nasdaq listing compliance and achieved meaningful debt resolution, reflecting an integrated approach to clearing historical burdens, improving net equity, and establishing a lightweight legacy structure that empowers our core business." Jia added: "Looking ahead, we will continue our relentless focus on debt resolution and balance sheet optimization, laying a solid capital foundation for our next phase of growth. We are becoming the only complete, end-to-end robotics ecosystem enterprise in the United States, and establishing Faraday Future as the nation’s leader in Physical AI robotics education solutions. By continuing to scale our Four-Core flywheel, expanding our developer ecosystem, and executing our Capital Value Restoration Plan, we are positioned to drive sustainable profitability, lead the U.S. robotics transformation, and deliver long-term value for our stockholders." SECOND QUARTER 2026 HIGHLIGHTS EAI Robotics Commercial Traction and Shipment Execution The total cumulative sales and shipments of robotics units were 220 units for the quarter, with single-month sales and shipments reaching 105 units in June alone. The Company maintained its cumulative shipment target of 2,000 EAI robots by year-end. The Company advanced strategic cooperation with Triple I Group to deploy its EAI devices in educational settings, while RobotShop confirmed drop-shipping support following procurement evaluations. Upgraded the Three-in-One EAI Ecosystem to Four-Core Full-Stack AI Ecosystem The Company officially upgraded its robotics roadmap from a Three-in-One model to the Four-Core Full-Stack AI Ecosystem Strategy, integrating the EAI Brain, EAI Devices, Industry Productivity Solutions and Developer Platform, and EAI Data Factory. Under this strategy, device deployment expanded across its six-product series and three form factors, including the launch of the industrial grade FF Faber mobile manipulator series. Ecosystem software and data platforms also achieved key execution milestones. The EAI Data Factory platform completed its commercial closed loop during the quarter, generating initial sample payments. Customer engagement remains strong. FF launched its Open Developer Platform with open SDK and API interfaces, established California’s first education innovation lab, and onboarded Sequoia Education Center as a flagship partner. Regulatory Alignment and Established "Built in USA" Program Recent FCC guidance restricting non-compliant foreign robotics in the domestic market has strengthened Faraday Future’s competitive positioning. Operating as a domestic enterprise with full FCC certifications across its product lineup, the Company launched its Global Value-Chain Partner Recruitment Initiative to serve as a compliant gateway for global component suppliers and OEMs expanding into the United States. FF is uniquely positioned to capitalize on this historic strategic opportunity through its seven core competitive advantages: the "Full-Form FF EAI Robot World" built around six major product series and the "One Brain, Multiple Forms" and "Multiple Forms, Multiple Capabilities" strategies; the "Four-Core Full-Stack AI" ecosystem integrating the EAI Brain, EAI Devices, Industry Productivity Solutions & Developer Platform, and EAI Data Factory; its "5+1" ecosystem-based direct-sales and user co-creation system spanning key customer touchpoints; its compliance capabilities as a U.S.-based company; its data-driven evolutionary flywheel powered by large-scale deployment and real-world data; its asset-light, operationally lean financial model focused on positive product gross margins and payment-before-delivery discipline; and its differentiated capital value, supported by the potential standalone value-unlocking path for its robotics business. The Company accelerated its three-phase "Built in USA Acceleration Program", potentially moving from localized AI platform integration into Assembled in USA and Made in USA manufacturing. Under its Global Bridge Strategy, all R&D, operations, continuous model iterations, and data storage for the EAI Brain, Data Factory, and Developer Platform aim to remain localized within the United States to ensure complete regulatory compliance while integrating global supply chains for final device delivery. Capital Structure Optimization and Legacy Debt Resolution Faraday Future executed a series of decisive capital markets and balance sheet initiatives driven by the Company’s conviction that the true commercial value of its EAI robotics business is significantly higher than what is currently reflected in the Company’s market capitalization. To unlock this value, the Company’s debt solution program is advancing along two parallel tracks consisting of combining operating debt reduction with capital-structure optimization. As of the end of the second quarter, excluding the liability for the new fundings below, the actual debt reduction exceeded $100 million. This included an approximately $61 million reduction in total liabilities, which decreased to approximately $278 million at second quarter from approximately $340 million at the end of the second quarter of 2025. Regarding the financings disclosed, $42.5 million was deposited into accounts subject to deposit account control agreements and was classified as restricted cash as of June 30, 2026. FF is systematically clearing historical operating burdens while establishing long-term debt management and internal control mechanisms. In parallel, the Company took aggressive steps to optimize its broader capital structure, secure operating liquidity, and protect stockholder equity. FF secured $70 million in cumulative new institutional commitments, permanently canceled approximately 49.9 million Class A warrants since December 2025, and amended its $82 million convertible note agreement to eliminate VWAP-based pricing conditions and most warrant issuances. Following a 1-for-150 reverse stock split effective July 24, 2026, the Company received formal confirmation from Nasdaq that it has regained full minimum bid price compliance. Removing legacy obligations across both operating and capital levels provides a cleaner, highly flexible balance sheet that enables the robotics business to accelerate commercial deployment while actively evaluating independent capital strategies, including standalone financing and a potential independent public listing roadmap. Enterprise AI Systems and Corporate Governance The Company continued advancing its AI governance framework, refining management structures across AI application governance, risk classification, token cost visualization, and lifecycle data management. Operational processes were deepened through AI integration to advance workflow automation, productivity evaluation, task tracking, and cross-departmental knowledge sharing. On compliance and internal controls, FF elevated its risk management, cybersecurity governance, and information disclosure systems. These optimizations strengthen privacy controls, improve cross-functional auditability, and ensure regulatory adaptability as the Company scales operations. RESULTS FOR SECOND QUARTER 2026 Revenue: For the second quarter of 2026, total revenue reached $836,000, representing an increase of over 1,400% compared to $54,000 in the second quarter of 2025 and bringing cumulative first-half revenue to $1.35 million. Cost of Revenue: Decreased 57% year-over-year from $26.91 million in Q2 2025 to $11.54 million in Q2 2026. Net Loss: $38.96 million for the second quarter of 2026, representing a 69% decrease from $124.7 million in Q2 2025, marking an $85.71 million year-over-year bottom-line improvement driven by revenue contribution, healthier product contribution margin, structural cost optimization and disciplined operating expense management. Total Stockholders’ Equity: $1.41 million as of June 30, 2026, maintaining a positive equity position. 2026 OUTLOOK Looking ahead, the second half of 2026 represents a critical period of operational scaling, regulatory alignment, and capital discipline as Faraday Future advances its Five Key Transformations across finance, strategy, business operations, capital structure, and AI systems. With its robotics roadmap formally expanded to the Four-Core Full-Stack AI Ecosystem Strategy, the Company is concentrating its resources on commercial revenue expansion, domestic assembly execution, systematic debt resolution, and establishing a clear trajectory toward sustainable profitability. Financial Outlook Embodied AI (EAI) Robotics serves as Faraday Future’s primary near-term commercial engine. Driven by rising demand across four key commercial sectors, Education, Industrial Applications, Security Inspection, and Existing Core Commercial Markets, the Company is targeting cumulative shipments of more than 2,000 EAI robot units by year-end. Moving into the second half of 2026, our financial strategy is focused on establishing a sustainable revenue model and achieving balance optimization through three primary pillars: Revenue and Ecosystem Growth – Accelerate the growth of all businesses across our Four-Core Full-Stack AI Ecosystem strategy, driving continued revenue expansion and steady improvement in overall gross margin, driven primarily by commercial device shipments and accelerating monetization of our EAI robotics ecosystem. Liability Reduction – We reemphasize our clear debt resolution target to reduce total company liabilities to under $100M within the next three to four quarters, providing continued support for the growth of our robotics business. Operating Cash Flow Optimization – We are building a differentiated growth model based on our strategic upgrades to continuously optimize operating cash flow. This approach supports near-term cash flow generation with limited additional capital investment, while backing our long-term ecosystem expansion. Four-Core Full-Stack AI Ecosystem: Integrating Devices, Brain, Data, and Productivity Solutions Building on its initial commercial traction, the Company is executing its expanded "Four-Core Full-Stack AI" framework, unifying EAI Devices, the EAI Brain, Industry Productivity Solutions and Developer Platform, and the EAI Data Factory. This integrated architecture allows Faraday Future to monetize the entire hardware, software, data, and service lifecycle. On the EAI Devices front, we are accelerating deployment across key verticals including education, industrial, and security/inspection, continuously expanding the robotics product portfolio and scaling commercial deliveries. The EAI automotive business remains one of FF’s core businesses and an important component of the Company’s overall EAI strategy. The Company will proceed with a highly disciplined and prudent approach, strictly aligning the pace of execution and capital deployment with the availability of dedicated funding, and will not accelerate the business unless and until sufficient funding has been secured. Meanwhile, FF will align its execution with the development plans and progress of its strategic partners. On the EAI Brain front, the Company expects to further deepen the integration of NVIDIA’s technology stack with FF’s proprietary EAI Brain, robotics platform, and data infrastructure over the course of this year. We will continue advancing GR00T training and validation on embodied AI capabilities including complex grasping and multi-step manipulation, while driving SONIC technology from simulation-based training toward full body robot control on real hardware and cross platform migration across different robot form factors. On the EAI Data Factory front, the Company will further close the complete loop encompassing real‑world robot data collection, training, evaluation, deployment, and continuous learning. This will accelerate the formation of a self‑reinforcing flywheel — "Device → Data → Brain → Solution → Device" — and build an embodied AI technology framework that is quantifiable, continuously iterable, and scalable across diverse robot morphologies, providing core technical support for the ongoing evolution of our autonomous EAI Brain, industry solutions, and the broader Four‑Core Full‑Stack AI Ecosystem. The EAI Data Factory is expected to reach a monthly production capacity of 2,100 qualified real-world data collection hours by the end of August, 20,000 hours by the end of December, and a total of 50,000 hours of data collection for the full year. On the Industry Productivity Solutions and Developer Platform front, we are building standardized, replicable, and scalable industry solutions to enhance customer value and return on investment (ROI), with planned geographic expansion across California, Texas, and the Eastern U.S. within the year. Concurrently, we are continuously strengthening the developer ecosystem by opening up robot capabilities, skills, and industry application platforms to attract more developers and partners to co‑build the robotics application ecosystem. For the Developer Platform, we completed a full business closed loop, deploying our EAI Soul framework, Brain Block modular architecture, open SDK, and API interfaces in the second quarter. We officially launched the FF EAI Robotics Open Source and Open Developer Platform, featuring both General and Youth Developer Editions alongside four core developer tools. For the remainder of 2026, we are continuing to streamline our product portfolio to prioritize robotics products with clear commercialization potential and positive unit economics. Supported by expanding demand across our key use cases, specifically education, by the end of 2026, we aim to ship more than 2,000 EAI robot units, expand our portfolio to 100 skills, and grow our developer community to 200 members. Together with real-world data collection across multiple use cases, these efforts will lay a solid foundation for larger-scale shipments and broader data collection in the years ahead. Manufacturing & Product Compliance: Accelerating "Built in USA" Phase 2 In manufacturing and mobility, the Company is advancing its domestic production strategy into Phase 2, aiming to transition from localized AI platform integration to "Assembled in USA" manufacturing. This domestic footprint reinforces supply chain resilience, shortens delivery timelines, and directly leverages recent regulatory actions—such as new FCC equipment authorization policies and evolving ICTS standards restricting foreign-produced robotics—positioning Faraday Future as a trusted, fully compliant supplier of Physical AI hardware in the United States. Across both its vehicle and robotics portfolios, Faraday Future continues to optimize its product roadmap, prioritizing high-margin offerings characterized by near-term commercial viability, rapid monetization, and positive unit-level economics. Capital Strategy: Capital Value Restoration Plan and Debt Resolution From a capital perspective, Faraday Future is aggressively pursuing its Capital Value Restoration Plan to enhance capital efficiency, curb equity dilution, resolve legacy liabilities, and rebuild stockholder trust. Key Initiatives: Exploring Standalone Financing and Public Listing for the Robotics Business – We are actively evaluating independent financing and potential public listing opportunities for our robotics segment. Such a move would secure dedicated growth capital for our EAI ecosystem, reduce equity dilution at the FFAI level, and directly benefit our stockholders. Accelerating Historical Debt Resolution – Our total liabilities at the end of the second quarter of 2026 declined by more than $100 million compared with the same period in 2025, excluding the $42.5 million in restricted cash received from financing and its corresponding liability. We are targeting a further reduction to below $100 million over the next three to four quarters, and we have committed that any new capital raised will be allocated primarily to robotics business development, rather than to servicing legacy obligations. Strengthening Financing Discipline – We have locked in a conversion floor price of $5.00 per share for the substantial majority of our outstanding convertible notes and have imposed daily conversion caps to strictly mitigate dilution risk. Focusing on Operating Revenue Growth and Cost Controls – We are intensifying efforts to drive revenue growth and contain costs, thereby reducing our reliance on external financing while steadily advancing our long‑term debt reduction targets. Our EAI ecosystem continues to gain traction, and our underlying fundamentals are improving. Nevertheless, management believes that our current market capitalization does not yet reflect the true potential of our robotics business. Collectively, the above initiatives are expected to optimize our capital structure, unlock business value, and generate sustainable long‑term value for our stockholders. Long-Term Positioning Faraday Future is solidifying its market position as a leading U.S.-based Physical AI enterprise and the premier full-stack AI-robotics provider in North America. Concurrently, the Company is accelerating its organizational transition into an AI-native business, embedding artificial intelligence across management, financial, and compliance systems to maximize operating leverage. Anchored by its Four-Core Full-Stack AI ecosystem, Phase 2 "Built in USA" domestic assembly, and disciplined Capital Value Restoration Plan, Faraday Future is focused on driving organic revenue growth, clearing historical liabilities, and realigning its public market valuation with the intrinsic worth of its Physical AI technology platform. EARNINGS WEBCAST Faraday Future management will host a webcast today, August 13, 2026, at 7:00 p.m. Eastern time (4:00 p.m. Pacific time). Interested investors and other parties can listen to the conference call by either logging into: https://viavid.webcasts.com/starthere.jsp?ei=1772066&tp_key=069a8ec43b or onto the Investor Relations section of the Company's website at https://investors.ff.com/. A replay of the webcast will be available on the Company's website shortly thereafter. More detail on FF’s 2026 Q2 earnings, when filed, can be found in our SEC filings and online at https://investors.ff.com/financial-information/sec-filings. ABOUT FARADAY FUTURE Founded in 2014, Faraday Future (FF) is a U.S.-based Physical AI ecosystem company dedicated to reshaping the future of robotics and mobility solutions through AI innovation and technologies. FF focuses on two major product strategies within the Embodied AI (EAI) robotics business: EAI humanoid and bionic robots, and EAI automotive-focused robots. By building a "Four-Core Full-Stack AI" ecosystem of EAI Brain, Device, Industry Productivity Solutions and Developer Platform, and Data Factory, FF aims to create an evolutionary flywheel: scaled device delivery, data collection and training, continuous evolution of the EAI Brain, stronger product capability, and even larger-scale delivery and deployment. Through this flywheel, FF seeks to maximize its commercial value and lead to the advancement of Physical AI. For more information, please visit Faraday Future’s official website: https://www.ff.com/ FORWARD LOOKING STATEMENTS This press release 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 press release, the words "plan to," "can," "will," "should," "future," "potential," 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 FF’ vehicle business and FF’s entry into the embodied AI robotics market, involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, which could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, 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 pay its outstanding obligations, which it currently lacks; the availability of sufficient share capital to meet its current obligations and execute on its strategy; the willingness of convertible debt investors to fund the Company; demand for the Company’s robotics products; the ability of B2B preorder companies to locate customers to purchase our robotics products, on which their nonbinding preorders substantially depend; competition in the robotics industry, which includes companies with far superior experience, funding and name recognition; the ability of the Company to build an EAI education ecosystem that serves both the B2C consumer market and the B2B institutional education market; the acceptance by teachers and students of the Company’s robotics products in the education market; the ability of the Company to expand into additional markets for its robotics products; the Company’s reliance on a single OEM for most of its robotics products; the Company’s reliance on Chinese OEMs for all of its robotics products; the possibility of the federal government banning imports of Chinese robotics products; the Company’s ability to get the planned robotics products to comply with all applicable U.S. rules and regulations; the ability of the robotics OEM to timely supply robotics to the Company; tariff uncertainty for imported products, particularly from China; demand from automobile dealers for robotics products; the Company's ability to homologate FX vehicles for sale; the Company’s ability to secure the necessary funding to execute on the FX strategy, which is substantial; the Company’s ability to secure an occupancy certificate covering all of its Hanford facility; the Company's ability to remediate its material weaknesses in internal control over financial reporting and the risks related to the restatement of previously issued consolidated financial statements; the Company’s limited operating history and the significant barriers to growth it faces; the Company’s history of substantial losses and expectation of continued losses; the success of the Company’s payroll expense reduction plan; 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 Company’s ability to cover future warranty claims; the success of other competing manufacturers; the performance and security of the Company’s vehicles; current and potential litigation involving the Company; 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 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 use its "at-the-market" program; insurance coverage; general economic and market conditions impacting demand for the Company’s products; potential negative impacts of a reverse stock split; potential cost, headcount and salary reduction actions may not be sufficient or may not achieve their expected results; circumstances outside of the Company's control, such as natural disasters, climate change, health epidemics and pandemics, terrorist attacks, and civil unrest; risks related to the Company's operations in China; 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 manufacturer; the Company's ability to develop and protect its technologies; the Company's ability to protect against cybersecurity risks; and the ability of the Company to attract and retain employees, any adverse developments in existing legal proceedings or the initiation of new legal proceedings, and volatility of the Company’s stock price. You should carefully consider the foregoing factors and the other risks and uncertainties described in the "Risk Factors" section of the Company’s Form 10-Q for the quarter ended June 30, 2026; the quarter ended March 31, 2026, filed with the SEC on May 14, 2026, and Form 10-K filed with the SEC on March 31, 2026, and other documents filed by the Company from time to time with the SEC. View source version on businesswire.com: https://www.businesswire.com/news/home/20260813743465/en/ Contacts Investors (English): [email protected] Investors (Chinese): [email protected] Media: [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Designated RoboShare as the top operating priority for the second half of 2026, shifting the company's focus from strategic planning to tangible commercial execution. Identified the 'user layer' as the primary constraint in the robotic economy, positioning RoboShare as a marketplace to connect robot owners with enterprises to lower adoption costs. Introduced the 'Robot Second Life Cycle' model to create an asset-light expansion strategy by onboarding third-party robots and generating revenue through utilization and network value. Advanced the AI Agent strategy through internal enterprise testing and strategic partnerships, including collaboration with Faraday Future as a lead ecosystem partner. Sequenced the EAI platform and RWA tokenization initiatives behind RoboShare to concentrate resources on the nearest path to revenue generation. Maintained strict share count discipline with no new shares issued during the second quarter to preserve shareholder value during the transition. Leveraged the Automate 2026 launch to establish the digital infrastructure for future residual value standards and robotic resale markets. Targeting the initiation of marketplace-facilitated rental activity in Los Angeles in August 2026, which will serve as the primary test market for the business model. Implementing a 90-day monitoring period for the Los Angeles pilot to evaluate cumulative usage days, repeat customer activity, and per-order economics before expanding. Conditioning future expansion into Silicon Valley and New York on pilot performance, partner readiness, and local market conditions. Anticipating initial revenue opportunities in the third quarter of 2026, subject to operational readiness and revenue recognition requirements. Planning the future launch of a pre-owned robot business to provide predictable resale information and valuation standards for the industry. Management explicitly flagged liquidity as a significant constraint, with the company's ability to continue as a going concern subject to substantial doubt. Reported a reclassification of $12 million in Faraday Future related investments into parent company equity, described as a balance sheet reclassification without altering the underlying position. Recorded a $984,000 unrealized loss on digital assets due to cryptocurrency price fluctuations, highlighting the volatility of the company's treasury holdings. Reduced related party payables significantly from $1.65 million at year-end to approximately $237,000 as of June 30. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. RoboShare is the singular priority for the second half of the year, with a focus on the Los Angeles rental marketplace launch. Revenue recognition from these activities remains dependent on execution and specific accounting requirements. Operating expenses fell from $4.3 million to $3 million due to reduced marketing spend and lower reliance on external legal and accounting counsel. The company has strengthened in-house departments to decrease professional service fees significantly. Liquidity is managed by prioritizing RoboShare spending while treating the $5.2 million in digital assets as volatile non-cash equivalents. Future hiring and expansion plans are strictly gated by available liquidity and the performance of the initial pilot.

Image source: The Motley Fool. Thursday, May 14, 2026 at 7:30 p.m. ET Chief Executive Officer — Matthias Aydt Chief Financial Officer — Koti Meka Global President — Jerry Wang VP, Investor Relations & Corporate Communications — John Schilling Matthias Aydt: Thank you, John, and thank you to everyone who is joining us today. 2025 marked a fundamental transition for Faraday Future from strategy to execution. We are now entering early commercialization across both our EV and Robotics businesses, supported by growing demand signals and early validation of our gross margin profile. This is the first time in 12 years from company inception that we can expect to generate revenue with a positive margin. Most importantly, we are evolving beyond the traditional EV company into an embodied EAI ecosystem platform powered by a dual engine model of EAI EV plus EAI Robotics. The EAI strategy and the EAI industry Bridge Strategy are our core strategies. The EAI strategy is a 3-in-1 EAI ecosystem strategy driven by the EAI technology platform consisting of EAI devices, the EAI Brain and open-source, open platform and the EAI decentralized and centralized data factory, forming an open closed-loop EAI ecosystem. The EAI upgrade builds upon the IP and technology foundation of FF's original vehicle business. FF holds over 660 patents. The team is currently reviewing these existing patents to align with the EAI strategy. First, the devices under the EAI strategy, scalable embodied EAI devices for delivery include vehicles and robots. Second, the EAI Brain and open-source, open platform, this creates general purpose, Brain for multimodal embodied AI consisting of the EAI Brain, cerebellum and neural hub powered by EAI foundation models, EAI agents and skill technologies. Through an open-source, open platform we can unite the entire industry, empower each other and unlock massive value. Third, the EAI decentralized, centralized data factory. But on a multimodal all scenario common data infrastructure, this establishes a decentralized and centralized network ecosystem that integrates Web2 data monetization with Web3 data assetization, creating a new data business model. As the first U.S. listed company to achieve scale delivery of both humanoid and biomimetic EAI robot devices, FF not only has a unique first-mover advantage, but can potentially generate a series of chain reactions through this closed-loop ecosystem, internal ecosystem. The 3 businesses, devices, brain and data mutually fuel each other's growth. Mass delivery and adaptation of devices generate vast amounts of data, which enhance the EAI Brain's capabilities which in turn improves EAI terminal products and drives even larger sales, forming a close product technology loop. At the same time, this can reinforce the EAI business and accelerate the realization of fundamental value for the FFAI business. External ecosystem by open-sourcing FF's technology and platform and opening up protocol standards, FF can connect with industry partners and developers while organically linking shareholders, investors and users, creating synergies and co-creating shared value. Bridge strategy. With FF as the industry's bridge, the strategy can integrate global hardware strength with North American AI, R&D advantages, supports localized production and delivers affordable, high-performance intelligent products to target market users. Entering the U.S. Blue Motion market with a relatively asset-light fast iteration approach. The strength of this strategy lies in industrial efficiency and marginal cost benefits driven by deep synergies. Let me now walk through our business update. In the fourth quarter, we continued to move the reservation, production and delivery of EAI devices, highlights in the fourth quarter 2025, reached 2025's most significant milestone, the first FX Super One preproduction vehicle successfully rolled off the company's California AI factory, validating FF's ability to integrate resources across regions, industry and ecosystems, achieved a broad product competitiveness of Super One, a first-class MPV with 130 inches wheel-based flat floor, flexible zero gravity rear seats, FF EAI architecture and the world's first Super EAI F.A.C.E. System, emotional grill interface to be available in pure electric or AI hybrid extended range power options covering both urban and long-distance travel. Mass production preparation is on track as scheduled. A series of certification-related activities proceeded as planned. Additionally, purchase agreements for the first batch of FX Super One parts were signed in October. The final assembly line was completed in December. On the commercial front, we are building a 4-pillar sales architecture covering community, partner, B2B and third-party e-commerce channels. The B2B2C co-creation ecosystem expanded to 6 U.S. states. The cumulative non-binding, non-refundable pre-orders for the FX Super One reached over 11,000 units by the end of 2025. In the Middle East, the region transitioned from initial market entry to early commercial validation following the official launch of the FX Super One on October 28. Football legend, Andrés Iniesta became the world's first owner and co-creation officer in November, helping to strengthen regional influence. We are currently prioritizing deliveries to high-quality co-creation partners including local government entities while establishing operational foundation in Ras Al Khaimah. To support these global efforts, Faraday Finance, Inc. was established in October to provide diversified financing solutions. An application has been filed with the relevant order finance license with the California Department of Financial and Protection and Innovation. Meanwhile, the ultra-luxury FF 91 flagship continues its niche presence with a targeted delivery, and the company has released redesign sketches for our planned FX 4, which is positioned as the RAV 4 Disruptor in the AIEV Era. We also have amazing upgrades on the FFAI technology stack. The system now natively supports over 50 languages and includes real-time web searches with voice synthesis and RAG knowledge-based support. Technical improvements also include an AEC upgrade to support seamless conversation, interruption and the successful migration of end-to-end autonomous driving model. We have developed vision-based 3D object detection and a scalable automated labeling algorithm alongside the implementation of gesture-controlled door entry using the DinoV3 vision model. These are not isolated features. They form the foundation of a scalable cross-terminal intelligence system. Furthermore, FF has submitted a patent for a blockchain and Web3-based vehicle sharing system that allows for one-click sharing, automated credit verification and revenue distribution. Qualigen Therapeutics Inc., an independently operated company strategically invested in and controlled by FF was renamed AIxCrypto Holdings, Inc. NASDAQ AIXC. In November, FF expects to expand brand exposure and low-cost financing channels through potential cooperations with AIXC. Highlights of subsequent events, FF EAI Robotics was launched on February 4, and the deliveries officially commenced in late February. FF became the first listed company in the U.S. to deliver humanoid and bionic robots by March 2026, cumulative shipments of FF EAI Robotics, including predeliveries, reached 22 units, exceeding preset target, accompanied by the start of robot sales revenue and positive product gross margin in the first quarter. As of the launch event, total non-binding, non-refundable pre-orders of FF EAI Robotics reached over 1,200 units. FF EAI robots focus on education, home security and entertainment scenarios to drive product deployment and market awareness. By expanding the existing automotive sales system to include both EAI vehicles and EAI robots, we are maximizing our reach with limited incremental investment. Following the NADA Dealer Summit in January 2026, several memorandums of understanding have been signed with U.S. dealerships. By February 2026, the company upgraded cooperation with its bridge strategic partners, signing agreements for mass production component procurement and engineering services as it enters the final sprint towards full-scale production. In the U.S. market, 800-volt high-voltage drive systems are becoming a core label defining the product strength and technological leadership of high-end electric vehicles. We have already started work on product-related research and development. FFAI has achieved cross-platform sharing EAI vehicles and EAI robotics such as voice dialogue capabilities and multimodal interaction capabilities. Model training platforms and tool chains as well as multimodal environmental perception models have also been shared. Part 3, system building. Now let's discuss our recent progress on system building. Our update in the fourth quarter 2025 focuses on the reinforcement of our internal management systems, talent acquisition and regulatory framework, helping us transition toward AI-driven corporate management, effectively transforming our internal company processes through the integration of advanced AI technologies. We introduced the overall PPTIA governance methodology and implemented it across FFAI. To drive operational efficiency and strategic growth, Faraday Future continues to invest in world-class leadership and infrastructure. On the regulatory and governmental front, our leadership remains proactive in securing the company's position with the domestic policy landscape. FF and FX executives held a series of constructive meetings in Washington, D.C. with several U.S. members of Congress and government officials. These dialogues are essential as we continue to refine our corporate governance and ensure our strategic initiatives are well understood by key stakeholders. A major milestone was reached with the conclusion of the SEC investigation in March 2026, a result that we believe validates the significant reinforcement of our legal and compliance system. In March, our headquarters relocated to Silicon Beach, a strategic move that has significantly enhanced our ability to attract top-tier senior talent in the heart of major technology hub. By combining a validated compliance framework with a high-caliber talented pool and AI enhanced management tools, we have established a resilient organizational foundation to support the next phase of our global expansion. Now I will turn the call over to Koti Meka to discuss the fourth quarter and full year financial updates. Koti Meka: Thank you, Matthias. For the full year 2025, revenue was essentially flat year-over-year. This reflects early-stage commercialization with stable market engagement as we continue to refine our plan. Loss from operations was $32.3 million for the 3 months ending December 31, 2025, and $331 million for the full year 2025, primarily reflecting R&D investments, headcount growth and select asset-related adjustments. Excluding onetime impairments or losses, the operating loss was $185 million, reflecting the company's cost optimization efforts. The onetime asset impairment in 2025 resulted from the strategic shift from the FF 91 program to the planned FF 92 upgrade, along with reorganization and retooling for the FX Super One commercial production. The impaired assets are expected to be redeployed with limited additional investment in retrofitting and upgrades. Operating cash outflow was $107.5 million for the full year 2025, primarily driven by changes in working capital and the operational ramp-up of the FX platform. Financing cash inflow was $161.4 million for the full year 2025, a 100% increase from $80.7 million in 2024. Stockholders' equity was $7.7 million at the end of 2025, primarily impacted by manufacturing optimization expenses, fair value adjustments related to our convertible notes and impairment provisions for certain assets. As a reminder, our capital structure includes equity-linked instruments and as a result, reported figures may experience meaningful noncash volatility period-to-period. I will now turn the call over to Jerry Wang, our Global President, to discuss capital markets updates. Jerry Wang: Thanks, Koti. In 2025, we remain focused on aligning capital deployment with key milestones while maintaining flexibility to support execution and long-term growth. The company achieved a net financing inflow of $161.4 million, demonstrating an ability to raise capital despite a cooling electric vehicle financing environment. Throughout the fourth quarter, leadership maintained close communication with capital markets, participating in multiple conferences and roadshows to enhance visibility and active pursue analyst coverage. This momentum carried into February 2026 when the company successfully hosted an investor event in Hong Kong. During this event, we engaged with over 30 investment institutions to deeply record the result and future road map of the EAI Bridge Strategy, highlighting how the EAI EV plus EAI Robotics Dual Engine approach is driving a significant reevaluation of the company's market worth. We believe the market is beginning to recognize FF not as a traditional EV company, but as an EAI-driven ecosystem platform with a newly launched Robotic business. To optimize the capital structure, the company entered into agreements with several warrant holders in the fourth quarter 2025 to terminate and cancel a total of 44.5 million warrants previously issued under various of security purchase agreements. This decisive move aims to simplify the company's capital structure and reduce potential future share dilution. These structural improvements are being paired with aggressive measures to protect stockholders and investors. In March 2026, the company received a letter from U.S. SEC stating that the SEC has formally closed its investigation, which lasted more than 4 years and decides not to take any enforcement or legal action against the company, YT, Jerry or others. This removes the historical constraints and destabilizing factors that have hindered the company's development and stands as the most powerful and definitive response to illegal short sellers. The company will immediately launch an updated version of its [ term ] pronged transformation initiative to swiftly and cost effectively achieve 4 phased goals: short term, 180 days, mid- to short term, 1 year, midterm, 3 years and long term, 5 years. We will go all out to build sustainable and growing positive cash flow, rebuild market confidence and deliver returns to our shareholders and investors. In addition, on March 20, the company received a notice from NASDAQ regarding a 180-day compliance period to meet its share price listing requirement. We'll do our utmost to regain compliance without resorting to a reverse stock split. We have launched a collective share purchase plan by executives and employees and initiated steps towards legal action against potential illegal short selling as well as the dissemination of false and misleading information intended to manipulate the market and obtain improper gains. This collective action serves as a clear signal of our belief in the company's trajectory and our commitment to actively protecting the interest of the company and all stockholders. I will now hand the call over to Matthias to discuss our 2026 outlook. Matthias Aydt: Thank you, Jerry. Looking ahead to 2026, Faraday Future is focused on deepening strategic execution aimed at driving continuous growth of business and deliveries. In our Robotics division, we have set a clear trajectory for the year with cumulative shipment volume target of over 1,000 units by the end of 2026. Throughout this period, we will continue to ensure the positive product gross margin and ramp up production to prepare for high-volume delivery in the following years. For the FX Super One, our priority remains the enhancement of overall product competitiveness with stable cash flow as a prerequisite. With the initial deployment of the technology-driven ecosystem strategy and deeper open-sourcing of the EAI Brain and technology platform, we expect to generate software-related revenue within 2026. Considering EAI robotics to require considerably less investment than EAI vehicle, we expect the limited additional investment and the positive product gross margin of EAI robotics will improve our 2026 operating cash flow. On the capital and regulatory front, our objectives for 2026 are focused on restoring market confidence and ensuring long-term stability. This includes working towards regaining compliance with NASDAQ's minimum bid price requirement within the applicable 100-day compliance period and actively introducing strategic investments from top-tier global investment institutions. Our systems and corporate governance will undergo a major transformation to support the scale. We are establishing an advanced governance system aimed at maximizing the interest of stockholders and investors while embedding AI governance into our very core. By achieving the systemization and automation of AI governance, including risk identification, compliance control and token cost management, we will enable dynamic monitoring and intelligent optimization of our EV and robotics operations. This AI governance system is designed to achieve cross-regional compliance and optimal resource allocation, effectively transforming our operational capabilities into a core corporate competitiveness and strategic advantage. Simultaneously, we remain in continuous dialogue with government departments regarding the bridge strategy and tariffs to secure policy support and create value by bringing global supply chain capabilities back to the United States. Through these efforts, we are building an ecosystem supporting long-term valuation enhancement and our participation in the formulation of industry standards. In summary, Faraday Future has entered a new phase in 2026 from concept to execution, from single business to dual engine growth, from EV company to EAI ecosystem platform. We are approaching an inflection point toward a positive gross margin of robotics delivery and commercialization scale with continued creation of long-term value. We believe this transition positions us for long-term value creation and a potential re-rating of our market valuation. Thank you. To conclude, I will now hand the call over to John for the Q&A. John Schilling: Thank you to everyone who presented today. As we wrap up, I would like to briefly highlight the materials included in the appendix. In the appendix, you'll find our unaudited balance sheet and financial statements as of and for the 3 months and full year ended December 31, 2025, providing additional detail on our financial position. These materials offer helpful context to supporting everything we have shared today. John Schilling: With that, we would now like to open the floor for Q&A. Question one. Who is buying the robotic products today? And what are the primary use cases driving that demand? Matthias Aydt: Our Robotics business is structured across 3 core layers: robotic device deployment and decentralized data factory as well as the EAI Brain and open-source, open platform. In this context, robot sales represent only one component of our broader strategic architecture, albeit an important or complementary one. The robotic hardware deployment layer encompasses not only direct sales and rental, but also a full suite of user operation services, including aftersales support, spare parts, ecosystem products and financial services. Our goal is to become a U.S.-based leader in early-stage robotics deployment in North America, establishing a strong market presence and defensible moat. In terms of use case scenarios, our target customers span a wide range of industries, including high-end hospitality and vacation rentals, automotive dealership, showrooms, security and patrol, education, entertainment and life performance, agricultural harvesting and research laboratories. We have already achieved early deployment in several of these verticals. Our data factory business has completed its strategic planning and has now entered execution. Within the embodied AI industry, real-world robotic data collection and training serve as a critical complement to simulation-based data and are essential for validation. This creates a closed-loop system between sim to real and real to sim. Our data collection solution is already capable of seamless integration with the NVIDIA Isaac ecosystem. As our robot fleet continues to scale, it will become a key source of high-value data generation. In parallel, we are integrating this capability with AIXC's on-chain infrastructure, creating a differentiated and competitive advantage. On the EAI Brain and open developer platform, we have already made meaningful progress and plan to move into the implementation phase in the near term. John Schilling: Question two. How does your B2B2C model translate into actual revenue generation? Matthias Aydt: The so-called B2B2C model refers to FF working in collaboration with FF partners on the sales side to jointly engage and serve end consumers [ C-end ] users. FF's B2B2C model mainly relies on cooperation with various [ B-side ] commercial partners to convert high-end customers' resources into actual sales revenue. The company works with real estate agencies, high-end clubs, corporate clients, dealers and other partners to reach high net worth individuals through their channels, then completes vehicle sales and delivery to generate direct revenue from car sales. At the same time, the company incentivizes partners to acquire customers through reasonable commission and profit sharing arrangements, which not only lowers its own customer acquisition costs, but also quickly expands order volume. In addition to car sales, the company will also generate recurring revenue through value-added services such as aftersales maintenance, connected car services and automotive financing programs. This light asset model rapidly expands channels, targets high-volume customers and shortens the sales cycle, allowing orders to be converted into cash flow and revenue more quickly. As partner channels expand and delivery efficiency improves, valid orders driven by [ B-side ] referrals will keep growing, serving as an important pillar for the company to improve operating cash flow and restore market confidence. John Schilling: Question three. Following the approval to increase authorized shares, how are you balancing funding needs with dilution sensitivity? What principles are guiding capital allocation? Matthias Aydt: The increase in authorized shares provides us with additional flexibility, but it does not alter our disciplined approach to capital allocation. Our capital deployment remains milestone-driven and sequenced around clear value inflection points. We prioritize return potential, capital efficiency and importantly, the preservation of long-term shareholder value. Importantly, within our business mix, the EAI Robotics business represents a more capital-efficient growth engine compared to the EEI Vehicle business. It operates under a relatively light-asset model, requires less incremental capital and therefore, inherently carries lower dilution risk when funded. In addition, the Robotics business has already demonstrated revenue generation and positive product gross margin. This not only supports internal cash flow dynamics, but also contributes to expanding the company's valuation foundation, enabling the market to more appropriately reflect the intrinsic value of FFAI over time. John Schilling: Question four. What are the next steps for the EAI Brain and open-source, open platform and the data factory? Matthias Aydt: A good question. The FF EAI brain will evolve into a general purpose AI capability that can be migrated and reused across multiple scenarios, multiple tasks and multiple terminal devices, supporting the continuous evolution of vehicles and robots in different applications. Through open-source mechanism, open interfaces and ecosystem collaboration mechanisms, the open-source, open platform will potentially enable more developers, partners and various types of hardware to connect and co-build. By continuously accumulating high-quality scenario data and behavioral data, we will gradually build data commercialization capabilities for model training, capability optimization and industry applications. We plan to enter the AI infrastructure space, secure our first customer and generate revenue. In addition, we plan to actively establish broad partnership with data companies and AI enterprises to jointly promote data circulation, model coke construction and the deployment of scenario-specific capabilities. John Schilling: Question five. What measures will the company take to ensure compliance with share price requirements within 180 days? Matthias Aydt: One of the company's top priorities during the rectification period is to restore compliance with the minimum share price requirement to the greatest extent possible without conducting a reverse stock split. Firstly, the fundamental measure is to rebuild investor confidence through sustained improvement in the company's operating performance. FF Robotic has now commenced deliveries and started generating revenue with positive gross margins, making a positive signal for the company's fundamental operating performance and operating cash flow. We are focusing our strategy on business that enable rapid delivery and quick cash flow generation with a clear and progressively achievable path to profitability. Second, further optimize the company's cost structure and emphasize return on investment. Third, repurchase shares on the open market to signal internal confidence and better balance financing needs and equity dilution through strategic focus. Fourth, continue to strengthen information disclosure to stabilize market expectations and take legal actions against alleged rumor monitoring deformation and malicious stock price manipulation. Suffice it to say, our confidence is stronger today than it was a year ago. We look forward to restoring market confidence through consistent delivery positive margin products. John Schilling: Thank you for your time. This concludes our investor Q&A session. We appreciate all the questions submitted and apologize if we couldn't get to all of them today. We remain committed to maintaining open communication with our investors. That concludes today's conference call. Thank you for all of your participation. Operator: This concludes today's teleconference. You may now disconnect your lines at this time. Thank you for your participation. Before you buy stock in Faraday Future Intelligent Electric, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Faraday Future Intelligent Electric wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Faraday Future (FFAI) Q4 2025 Earnings Transcript was originally published by The Motley Fool

The Company thanks all stockholders for their support and for recognizing the company’s strategy, business direction, and the new executive leadership team. As the first U.S company to sell and deliver both humanoid and bionic robots, approval of the core proposals gives FF necessary tools to unlock value from production ramp-up, support large-scale deployment across real-world users, and strengthen its first-mover advantage. FF has raised the full-year shipment target from 1,000 to 1,500 units and will launch a new EAI Robotics product in June. Next, it plans to speed up deliveries of EAI robots and deployment across key areas including education, security, reception, tours, performances, and university research; advance its EAI brain and developer platform; and expand real-world data value from its EAI data factory, to achieve long-term corporate value growth. The Company has secured a total of $70 million in financing over the past two months, enough to fully support the Phase 1 (by end of 2026) objective of FF’s EAI robotics strategy while the financing also demonstrates institutional investors' confidence in the Company's prospects. The approved 45% authorized share increase will support future issuance obligations and the 2026 strategic plan, including the global EAI strategy. The approved reverse stock split is intended, among other factors, as a contingency measure to mitigate delisting risk and would be implemented only if the Company deems it necessary to maintain its Nasdaq listing status and the board of directors (the "Board") determines it is in the best interests of stockholders. LOS ANGELES, May 22, 2026--(BUSINESS WIRE)--Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI) ("Faraday Future," "FF" or the "Company"), a California-based global Embodied AI (EAI) ecosystem company, today announced the results of its 2026 Annual Meeting of Stockholders (the "Annual Meeting") held today, May 22nd, at which the Company’s stockholders approved all of the submitted proposals, which were meant to enhance FF’s financial stability and empower the leadership team to execute its strategic plan aimed at supporting the Company’s Global EAI Robotics strategic execution and long-term growth. "We are pleased with the overwhelming support from our stockholders at today’s Annual Meeting," said YT Jia, Faraday Future’s Founder and Global CEO. "We believe that, as owners of our Company, our stockholders see the true value in our newly announced long-term strategy and have provided us the tools we need to execute our plan and bring forth strong results. The results of this AGM help to validate our vision of becoming a Physical AI ecosystem company." The core proposals that FF Stockholders approved at the Annual Meeting include: Directors Election ProposalThe election of five directors: Jerry Wang, Xiao Jiang, Chad Chen, Kevin Chen, and Lev Peker. These individuals will serve until the 2027 Annual Meeting of Stockholders and until their respective successors are duly elected and qualified.Approval of this proposal will help support the Company’s strategic continuity, strengthen closed‑loop oversight from financing through performance, enhance internal and external trust and cohesion, and improve the effectiveness and efficiency of EAI ecosystem strategy execution. Through governance optimization measures, the Company is aiming to fulfil its commitment to protecting the interests of its stockholders. Note Purchase ProposalIn accordance with Nasdaq Listing Rule 5635(d), the issuance of Class A Common Stock to holders of certain promissory notes.On April 17, 2026, the Company entered into a notes purchase agreement (the "NPA") for an aggregate amount of $45 million with an institutional investor. The redemption provisions contained in such promissory notes, which provide that such promissory notes are redeemable under certain circumstances in either cash or shares of common stock following the six-month anniversary of closing, based on the markup price upon such redemption. The Company believes the structure demonstrates its commitment to protecting existing stockholders while using raised capital to grow its business.This approval of the Note Purchase Proposal will provide the Company with critical capital and support the Company’s Global EAI Strategy execution throughout 2026, driving business growth and enhancing stockholder value.For more information on the NPA and the related financing, please refer to the Company’s Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on April 20, 2026. Share Issuance ProposalThe issuance of Common Stock to the holder of certain shares of our preferred stock and warrants, in accordance with Nasdaq Listing Rule 5635(d).Approval of the Share Issuance Proposal will help the Company meet its contractual obligations, support future capital raising efforts, and enable mutual reinforcement between its core EAI business and the digital asset ecosystem. Share Authorization Proposal Increase the number of authorized shares of Class A common stock and Class B common stock (collectively, the "Common Stock") by 140,528,448 shares, from 312,285,439 shares to 452,813,887 shares, and the number of authorized shares of preferred stock (the "Preferred Stock") by 10,839,269 shares, from 24,087,265 shares to 34,926,534 shares. As a result, the total number of authorized shares of the Company’s Common Stock and Preferred Stock will increase from 336,372,704 shares to 487,740,421 shares.The Board believes it is desirable for the Company to have a sufficient number of shares of Common Stock available for the satisfaction of its existing obligations to issue shares of Common Stock and possible future financings or acquisition transactions, stock dividends or splits, stock issuances pursuant to employee benefit plans and other proper corporate purposes. Reverse Stock Split ProposalApproval to effect a reverse stock split of the issued and outstanding shares of Common Stock by a ratio of up to 1-for-150 (the "Reverse Stock Split"), at the specific ratio to be determined in the discretion of the Board and with such action to be effected at such time and date, if at all, as determined by the Board within one year after the conclusion of the Annual Meeting.The Company remains committed to organically enhancing its value and maintaining its listing status through business development. The Company reiterates that it will reverse split its shares only if necessary to maintain its Nasdaq listing status.Though approved, the Board will implement the Reverse Stock Split if and when the Board determines that the Reverse Stock Split is in the best interest of the Company’s stockholders, which may include reference to the following principles: (i) the closing price of the Company’s common stock is at a level that could trigger a Nasdaq delisting risk due to trading below $0.10; or (ii) sufficiently in advance of the expiration of the applicable Nasdaq 180-day compliance period to allow a reasonable implementation period, the Company’s common stock has not regained compliance with the $1.00 minimum bid price requirement, and delisting risk exists. However, the Board is not required to strictly apply the foregoing standards and shall retain full discretion in making its determination. Incentive Plan ProposalThe Company’s amendment to the Faraday Future Intelligent Electric Inc. Amended and Restated 2021 Stock Incentive Plan (the "2021 Plan") in order to increase the number of shares of Class A common stock available for issuance under the 2021 Plan by an additional 50,492,075 shares.Approval of the Incentive Plan Proposal will allow the Company to continue offering long-term equity incentives as an alternative to cash compensation to help attract, retain and incentivize key talent in support of the execution of our EAI strategy. Meeting Details The Annual Meeting occurred on May 22, 2026, at 9:00 a.m. Pacific Time. More details about the results can be found here: https://investors.ff.com/ ABOUT FARADAY FUTURE Founded in 2014, Faraday Future (FF) is a U.S.-based Physical AI ecosystem company dedicated to reshaping the future of robotics and mobility solutions through AI innovation and technologies. FF focuses on two major product strategies within the Embodied AI (EAI) robotics business: EAI humanoid and bionic robots, and EAI automotive-focused robots. By building a Three-in-One ecosystem of "Device, Data, EAI Brain & Open-Source and Open Platform," FF aims to create an evolutionary flywheel: scaled device delivery, data collection and training, continuous evolution of the EAI Brain, stronger product capability, and even larger-scale delivery and deployment. Through this flywheel, FF seeks to maximize its commercial value and lead to the advancement of Physical AI. For more information, please visit Faraday Future’s official website: https://www.ff.com/ FORWARD LOOKING STATEMENTS This press release 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 press release, the words "plan to," "can," "will," "should," "future," "potential," 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 FF’s entry into the embodied AI robotics market and future deliveries, involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, which could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors that may affect actual results or outcomes include, among others: demand for our robotics products; competition in the robotics industry, which includes companies with far superior experience, funding and name recognition; our reliance on a single OEM for most of our robotics products; our ability to get the planned robotics products to comply with all applicable U.S. rules and regulations; the ability of the robotics OEM to timely supply robotics to the Company; the ability of the Company to adequately insure its robotics products; tariff uncertainty for imported products, particularly from China; the ability of the U.S. Department of Commerce to review, condition, or prohibit robotics‑related transactions with a China OEM; demand from automobile dealers for robotics products; the Company’s ability to maintain its listing on Nasdaq; the Company’s ability to timely regain compliance with Nasdaq’s minimum bid requirement; the possibility of the Company’s common stock being suspended from trading on Nasdaq if its closing price is $0.10 or less for 10 consecutive trading days; the availability of sufficient share capital to execute on its strategy, which the Company currently lacks; the agreement of stockholders to substantially increase the Company’s share capital, which could result in substantial additional dilution; the Company's ability to homologate FX vehicles for sale; the Company’s ability to secure the necessary funding to execute on the FX strategy, which will be substantial; the Company’s ability to secure an occupancy certificate for its Hanford facility; the Company’s ability to continue as a going concern and improve its liquidity and financial position; the Company’s ability to pay its outstanding obligations; the Company's ability to remediate its material weaknesses in internal control over financial reporting and the risks related to the restatement of 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; the success of the Company’s payroll expense reduction plan; the Company’s ability to execute on its plans to develop and market its vehicles and robots and the timing of these development programs; the Company’s estimates of the size of the markets for its vehicles and robots and cost to bring those vehicles to market; the rate and degree of market acceptance of the Company’s vehicles; the Company’s ability to cover future warranty claims; the success of other competing manufacturers; the performance and security of the Company’s vehicles; current and potential litigation involving the Company; 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 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; the Company’s ability to use its "at-the-market" program; insurance coverage; general economic and market conditions impacting demand for the Company’s products; potential negative impacts of a reverse stock split; potential cost, headcount and salary reduction actions may not be sufficient or may not achieve their expected results; circumstances outside of the Company's control, such as natural disasters, climate change, health epidemics and pandemics, terrorist attacks, and civil unrest; risks related to the Company's operations in China; 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 manufacturer; the Company's ability to develop and protect its technologies; the Company's ability to protect against cybersecurity risks; and the ability of the Company to attract and retain employees, any adverse developments in existing legal proceedings or the initiation of new legal proceedings, and volatility of the Company’s stock price. You should carefully consider the foregoing factors and the other risks and uncertainties described in the "Risk Factors" section of the Company’s Form 10-K for the year ended December 31, 2025 filed with the SEC on March 31, 2026; and other documents filed by the Company from time to time with the SEC. No Offer or Solicitation of Securities This communication shall not constitute an offer to sell or a solicitation of an offer to buy any securities of FF, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended. View source version on businesswire.com: https://www.businesswire.com/news/home/20260522248208/en/ Contacts Investors (English): [email protected] Investors (Chinese): [email protected] Media: [email protected]

Image source: The Motley Fool. Thursday, May 14, 2026, at 7:30 p.m. ET Global CEO — Yueting Jia Chief Accounting Officer — John Schilling Need a quote from a Motley Fool analyst? Email [email protected] Yueting Jia: Thank you, John, and thank you to those joining us here today. I would like to thank the company and the Board for their trust in acknowledging and appointing me as Global CEO. In today's call, I will provide an update on FF's first quarter 2026 results, key progress from the first quarter through today and our outlook for the next stage of growth. FF will officially evolve into a U.S.-based physical AI ecosystem company focusing on 2 product engines within its EAI robotics business, EAI humanoid and bionic robots, and EAI automotive robots, committed to an AI-first philosophy. By building a 3-in-1 ecosystem, consisting of device, brain and open source and open developer platform and data. FF aims to create an evolutionary flywheel of scaled device delivery, data collection and training, continued evolution of the EAI Brain, stronger product capability and larger-scale delivery with the goal of maximizing commercial value. In terms of business model, FF generates platform revenue through agent skill revenue sharing, platform service fees, and enterprise solutions. At the same time, through EAI brand licensing, FF can extend its general intelligence capabilities to more robots and intelligent devices, creating scalable licensing revenue. More importantly, every skill call, agent operation and device deployment will continuously accumulate real-world data, which will flow back to the EAI Brain through the data factory. This creates an evolutionary flywheel and builds EAI ecosystem infrastructure that will be difficult to replicate in the physical AI era. From a strategic execution standpoint, our first phase will focus primarily on humanoid and bionic robotics with EAI automotive robotics serving as a complementary business. And I also want to reiterate something very clearly regarding our vehicle robotics business. We will only fully launch that business once we have secured strategic or long-term investment and sufficient funding to support scaled production and delivery. Until then, we will continue moving forward in a disciplined way with low cost, low capital intensity, low risk and a strong focus on maximizing stockholder value. Let me now walk through our business update. The first quarter of 2026 was a pivotal period for our robotics business. As our 3-in-1 EAI ecosystem strategy began forming a tangible commercial closed loop, EAI device update. Devices serve as a physical gateway to our strategy. We're accelerating deployment of FF robotics devices across vertical use cases, capitalizing on our first-mover advantage as the first U.S. company to deliver humanoid and bionic robots. On February 4, we officially released 3 series of EAI robot products, Futurist, Master and Aegis. During the event, the company announced a cumulative nonbinding nonrefundable paid preorders for our robot products of over 1,200 units. The delivery of our EAI robots started in late February with positive product gross margins. The total shipments have reached 68 units by the end of April. This provides a new asset-light, high-margin revenue source that is expected to support short-term cash flow while reinforcing our long-term ecosystem strategy. We are also actively expanding our dealer network in robot sales, and we continue to explore diversified sales models, including customized leasing programs. EAI Brain and open source and open developer platform update. Brain smarts our products, leveraging an open-source foundation model and our data factory. We are building a proprietary EAI Brain that bridges simulation and real-robot data training. This creates a close loop of efficient Sim2Sim and Sim2Real deployment, and continuous model self-evolution, targeting manipulation autonomy by year-end. To date, we have successfully built a cross-platform architecture for our self-developed EAI interactive brain with commercial demos now running across multiple sectors. Our proprietary data portal, cloud platform and a robot management backend V1.0 are live, laying the smart management groundwork for large-scale operations. Open source and open developer platform is enabling system for our strategy. By opening our platform to global developers, we significantly expand the value and diversity of our ecosystem, speed up the flywheel and establish 1 of FF's most important levers for creating a differentiated competitive moat. We held our EAI and developer platform strategy launch in San Francisco, officially initiating the era of EAI robotics education tailored for AI native. We achieved the first practical application of open claw on our robots and are successfully testing its expansion across various scenarios. Data factory update. Data fuels our strategy. As the first U.S. company to deliver humanoid and bionic robots, we are moving aggressively to build a first-mover advantage in the data business with the goal of fully commercializing our data factory to close the loop. We closed the R&D to sales loop in just 2 months after we launched our 3-in-1 strategy in February. Our data factory powered by our proprietary data OS replaces the costly custom-built data collection model, and we've signed and begun delivery on our first sales order within 2 months of launch. The data factory consists of 2 components: centralized and decentralized. For Centralized Data Factory, we developed a full stack in-house software suite covering collection, validation, upload and conversion on par with industry benchmark tools and with the core tool chain fully under our control. The first centralized supermarket shelf scenario is deployed at our L.A. headquarters and our teleoperation data business is in active market outreach. For Decentralized Data Factory, we built our own data collection software, eliminating the need to purchase costly third-party robot hardware just to access basic software licenses. The full pipeline from collection and processing to FF cloud upload is up and running, and we've collected the first batch of pilot real-world data across our EAI devices. We have signed MOU with Boston International Business School to jointly establish the BBSI FF AI Robotics Institute, the first industry-driven physical AI and robotics institute in the U.S. Now let's dive into the first quarter of 2026 financial results. Robotics emerged as the company's new revenue engine in its inaugural quarter of deliveries. For the first quarter of 2026, the company generated revenue of $512,000, representing a 62% increase from $316,000 in the same period last year, which itself nearly matches full year 2025 revenue of $536,000. This includes both device sales and ecosystem revenue with ecosystem revenue, including skilled software capability packs, et cetera, accounting for 26% of total revenue. The continuous delivery of robots is a pivotal milestone, allowing the company to begin realizing positive product gross profit. Please note that some in-transit robots are not yet included in this first quarter revenue. The income and corresponding costs for these units will be recognized when they have been officially delivered. Our loss from operations narrowed 18% year-over-year from $43.8 million in Q1 2025 to $35.9 million in Q1 2026, of which approximately $11 million consisted of noncash items, including depreciation, amortization, goodwill impairment and share-based compensation. After adjusting for noncash items and working capital movements, net cash used in operating activities, the company's actual operating cash burn was $31.5 million for the quarter. G&A expenses declined 33% year-over-year from $13.7 million in Q1 2025 to $9.2 million in Q1 2026, primarily driven by a substantial reduction in professional fees, reflecting the company's continued discipline in optimizing its cost structure. Turning to our balance sheet. Our stockholders' equity grew 148% quarter-over-quarter, standing at $19.2 million at the end of Q1 2026, making the second consecutive quarter of positive equity growth. Q3 2025, large asset impairment was a noncash accounting adjustment. Since that trough, equity has rebounded for 2 consecutive quarters from negative $39.5 million to $19.2 million, a $59 million improvement over 6 months, driven by debt-to-equity conversion, vendor sentiment and voluntary warrant termination. We believe FF is one of the few U.S. listed companies to engineer a return to positive stockholders' equity with continued growth within just 2 quarters of a major strategic impairment. Now let's discuss capital markets update. In the first quarter and subsequent weeks of 2026, the company secured critical funding and made strategic adjustments to our capital structure to support our EAI vision. In April 2026, we amended and upsized our existing share purchase agreement with a third party designated by AIxCrypto, bringing total committed equity financing to $12 million. The amendment replaced antidilution provisions with fixed warrants tied to operational milestones, a structure we believe better serves both the company and our existing stockholders while injecting meaningful capital to support continued execution of our EAI strategy. In April, the company successfully received $45 million in new financing from American institutional investors. Given EAI Robotics asset-light operating model and a relatively modest near-term capital requirements, we are deploying these funds to build a differentiated growth model, supporting short-term cash flow generation with limited additional investment while reinforcing the long-term expansion of our EAI ecosystem. This financing provides a solid financial foundation for supporting the initial production ramp-up from the EAI Robotics strategy, while preserving optionality for further capital structure optimization and strategic investment in subsequent phases. On the regulatory front, we reached a major milestone on March 18 when the SEC formally concluded its investigation of over 4 years. The SEC decided not to take any punishment or legal action against the company or leadership. The investigation has constrained our development and its conclusion serves as a powerful counterattack against illegal short sellers. Regarding our listing status, we received a notice from NASDAQ on March 20 regarding a 180-day remediation period to satisfy stock price compliance. To get there, we are accelerating business execution, advancing strategic initiatives and fighting illegal short selling. To restore market confidence and protect stockholders' interest, we have launched a collective stockholding plan for executives and employees and initiated legal action against illegal short selling and the dissemination of false misleading information. We have also maintained high frequency engagement with the capital markets including a New York institutional investor meeting and a series of capital and industry conferences. Now let's discuss our recent progress on system building. We are fundamentally transforming our AI system by upgrading our governance concept from PPTIA to AI-PPTI. We have also introduced the overarching governance philosophy of AI first. Through this new management concept and an upgraded AI talent organization system, AI is transitioning from a simple auxiliary tool into a key infrastructure that drives business growth and decision optimization. Our corporate governance system is also undergoing major changes, specifically by strengthening our closed-loop management from financing to performance. To maintain strategic continuity, take better responsibility for investors, investment results and enhance internal and external trust and cohesion. Another exciting event came from our government affairs. FF Robotics business has received support from both the state of California and the local city government where FF is headquartered. California State Treasurer, Fiona Ma, expressed strong support for multiple areas of collaboration including the inclusion of FF products in California's GSA government procurement list, the EAI transformation of K-12 and higher education and the integration of EAI industry chain resources. 2026 outlook. With the SEC's 4-year investigation officially concluded, we believe we are entering a fundamentally new stage of development. This new chapter is defined by greater strategic clarity, improved operational flexibility and renewed momentum across our entire business. The renewal of this long-standing external overhang allows us to fully focus on execution, innovation and long-term value creation. As we move forward, management is undertaking a comprehensive 5 key transformation initiative across our strategy, business, system, finance and capital. We will fully implement the EAI 3-in-1 strategy and our industrial bridge strategy. Our near-term focus will be on building a robotic ecosystem-driven revenue base and achieving a clear path towards sustainable profitability, which lays a solid foundation for the long-term value realization of the 3-in-1 strategy. At the same time, through continuous AI system level transformation, we aim to further enhance operational efficiency and overall business performance, ultimately, prioritizing stockholder value creation. Together, these initiatives are designed to strengthen our foundation, accelerate the commercialization of our AI and mobility ecosystem, enhanced financial discipline and rebuild long-term market confidence. In the following sections, I will discuss in greater detail our strategic outlook and these 5 key transformation initiatives. First, our outlook on EAI strategy. At the core of this next chapter in our strategy evolution, the company is evolving from a traditional capital-driven growth model towards a more disciplined and sustainable framework centered on revenue validation and long-term ecosystem development. The large-scale deployment of positive gross margin robotics products is positioned as our primary growth engine, while we continue to advance our long-term ecosystem of EAI devices, the EAI brain and open source platform and the EAI centralized and decentralized data factory. Looking ahead, under the guidance of our 3-in-1 strategy, we intend to firmly focus on scaling robotics deployment and monetization with positive gross margins while advancing our AI EV initiatives with a disciplined and cost-efficient approach. Our overall business model is shifting towards revenue generation, operational efficiency and ecosystem expansion with robotics serving as the first major growth driver. In the near term, we plan to focus on achieving commercial breakthroughs, expanding user adoption and building a broader ecosystem around its EAI Brain, developer platform and data infrastructure. As deployment volumes increase, we expect to establish a scalable growth flywheel driven by recurring revenue generation and the initial maturation of its integrated 3-in-1 business model. Over time, we aim to build diversified monetization channels across products, platforms, software and data services. Second, on our product, technology and business outlook. In the near term, by 2026, we intend to streamline our product portfolio and prioritize robotics products with clear commercialization potential and positive monetization opportunities. With a growing demand across our 4 major product lines and key use cases, including education, security and inspection, reception and guidance, performances and university research together with the upcoming launch and delivery of our new K-12 education products, we have officially raised our 2026 annual shipping target to 1,500 units and will host our Educational Ecology (sic) [ Ecosystem ] & Product Launch conference in early June. FF believes that robotics education will become the largest use case in the first phase of the robotics industry's B2C market. We are building the first large-scale EAI Robotics education system in the U.S., and we aim to be a major force in the very first year of America's EAI Robotics education ecosystem. In terms of product, we expect to initially focus on humanoid robotics while progressively expanding into additional categories, including quadruped robotics and other intelligent form factors. We believe this phased approach will allow us to refine products within specific use cases, establish repeatable deployment models and develop standardized scalable solutions over time. Third, looking at our systems and organization. As previously discussed, we are advancing a comprehensive AI-driven transformation aimed at upgrading our governance philosophy, operational infrastructure and organizational capabilities. Under this AI-PPTI framework, AI is no longer viewed as a stand-alone tool, but at the core operating capability embedded across the organization. At the policy level, we are strengthening governance mechanisms around data management, AI usage standards, information security, compliance and model oversight to support scalable and responsible AI adoption. At the process level, we are redesigning workflows to enable more standardized, intelligent and automated operations allowing AI to play a larger role in analysis, coordination and execution across key business functions. At the tools and information technology levels, we are building a more unified AI native operating environment, including enterprise AI platforms, cloud infrastructure, data systems and intelligent collaboration tools. At the same time, we are evolving our organizational structure and talent strategy to better align technical capabilities with business execution. We are investing in multidisciplinary talent and strengthening collaboration between operations and technical teams to support long-term AI integration across the enterprise. Fourth, our financial outlook. On the financial front, we are strengthening our strategic finance function. This year, we started building an AI-powered finance system not only to improve data accuracy and timeliness, but more importantly, to roll out financial guidance in a planned step-by-step manner. We will build strategic financial empowerment on 3 levels. Mindset Shift, moved from business recording to business collaboration and value co-creation and from data provision to information analysis and decision guidance. AI Empowerment, embed AI brain into accounting and core finance functions. Process redesign under the new AI + human management model, redesign the financial management and operational analysis processes to match the new model and keep them dynamically optimized. By the end of 2026, we expect to achieve the following financial goals improvement across the 3 financial statements with a steadily improving balance sheet structure, scaled revenue from the derived business and the closed loop revenue model for the brain and data businesses, delivering positive unit gross margin for devices and high-margin ecosystem revenue and a safe and stable cash flow. Financial information disclosed in a timely consistent manner, fully meeting SEC compliance requirements. Our financial analysis system tailored to FF's EAI business providing real-time guidance for decisions. Finally, our capital outlook. From a capital perspective, we are shifting to a long-term value-oriented capital structure. At the initial stage of this transformation, we will rely on internally generated revenue and operating cash flow as our primary financial foundation. We will strengthen investor communication to help stabilize market sentiment and rebuild long-term investor confidence. Meanwhile, we plan to upgrade our financing approach by gradually reducing dependence on high cost short-term debt. We continue to optimize its capital structure and is currently actively engaging with strategic investors and long-term capital to secure the remaining funding required for the mass production of the FX Super One. We are also committed to regaining stock price compliance within NASDAQ's compliance period. Our preferred approach is to let the price recover naturally through operational improvements. Conclusion, at a high level, we are positioning Faraday Future for a new phase driven by internally generated growth, stronger strategic partnerships and a significantly upgraded AI-driven technology ecosystem. We strongly believe that the 5 key transformations will materially improve execution and competitiveness while decisively realigning the company's market valuation with a long-term intrinsic value of its technology platform and future business opportunities. To conclude, I will now hand the call over to John for the Q&A. John Schilling: Thank you, YT. As we wrap up, I would like to briefly highlight the materials included in the appendix. In the appendix, you'll find our unaudited balance sheets and financial statements as of, and for the 3 months ended March 31, 2026, providing additional detail on our financial position. These materials offer helpful context to support everything we have shared today. With that, we would now like to open the floor up for Q&A. John Schilling: Question. During your 2025 earnings call in April, you set a 2026 robot shipment target of 1,000 units. Now you've raised it to 1,500 units. What gives you the confidence to hit this new target? Yueting Jia: First, we are the first U.S. company to deliver both humanoid and bionic robots. That's a meaningful first-mover position in the blue ocean market. Our product lines already cover the most important use cases, EAI education, security patrolling, reception and performance applications and university research. Second, the numbers are tracking well. We've shipped 68 robots as of April 30, and we are progressing toward our 200 unit delivery target by the end of Q2. That gives us strong visibility into the full year end. Third, demand is broadening, especially in EAI education. With our K-12 education product launching shortly, we expect a meaningful new pool on top of what's already there. Also in early June, we will host FF education ecosystem and product launch event. We are building the first large-scale EAI Robotics education system in the U.S. and we aim to be a major force in the very first year of America's EAI Robotics education ecosystem. John Schilling: Question. Will FF still execute its vehicle delivery plan this year? Yueting Jia: Yes. Vehicles remain a core part of FF's strategy. What we've adjusted is the timing. Today, we have 2 core embodied AI product engines, humanoid and bionic robots, and EAI vehicles as robots. In Phase I, robotics is a priority with vehicles playing a supporting role. Why this sequence? Robotics require far less capital than vehicles, generates revenue and gross margin faster, and plays directly to FF's existing strength in AI and integrated hardware software capabilities. For FX Super One specifically, full-scale mass production and delivery will begin once we secure strategic or long-term investor funding sufficient to support the ramp. Until then, we will proceed prudently, minimizing cost and investment, prioritizing safety and maximizing stockholder value. This does shift the Super One delivery timeline. The updated plan is once funding is in place, the Super One 800-volt BEV is expected to reach its first, second and the third phases of delivery within 6 to 9 months, 12 to 15 months, and 21 to 24 months, respectively. The AIHER hybrid model is expected to reach its 3 delivery phases within 9 to 12 months, 21 to 24 months, and 24 to 28 months. This adjustment gives us several very real benefits. We can concentrate resources on robotics during its critical ramp-up, substantially reduced near-term cash outflows and accelerate the formation of an operational closed loop and significantly lower our financial risk. John Schilling: Question. You announced on May 10 that YT Jia has been appointed Sole Global CEO, and Jerry Wang as Global Executive Chairman and that Matthias Aydt has resigned. What does this transition mean for the company's strategic direction and why now? Yueting Jia: Thank you for the question. This transition is really about getting FF into the best shape we can. Clear alignment, sharper accountability, faster execution, which sets us up for the next phase of our EAI strategy. Let me be very clear, our strategic direction is not changing. We continue evolving into a U.S.-based physical AI ecosystem company with EAI Robotics as a priority business in the first phase. We shipped 68 robots as of April 30, with positive contribution margins, and we've raised our 2026 shipping target to 1,500 units. In the new organizational structure, Jerry oversee finance, legal, government affairs and strategic cooperation and risk management. I oversee product EAI R&D, supply chain, manufacturing, quality, UES and VLE, and we jointly lead the strategy, capital market and the corporate operations. This transition creates a tight close loop from how we raise capital all the way to how we deliver business results. Capital strategy and real-world business performance are now directly linked. It strengthens our execution at exactly the moment FF need it most, and it directly reflects our commitment to putting stockholders first. I also want to take a moment to personally thank Matthias for his leadership as co-CEO. With more than 4 decades of automotive industry experience, he played a central role in moving the FX Super One program forward, strengthening our manufacturing foundation and executing the bridge strategy with global partners. Through some of the most transformative moments in this company's journey, he has been a steady and trusted partner. I look forward to his continued contributions to FF in the next phase. John Schilling: Question. Revenue for Q1 2026 was $512,000, how should investors think about your revenue trajectory for the rest of the year, given how early stage this commercialization is? Yueting Jia: This is a fair question. I'd answer it in 3 parts. First, Q1 is the starting point, not a baseline. In Q1, we began generating robotic sales revenue with positive product gross margin but our full year 2026 target is cumulative shipments of more than 1,500 EAI robots, and we are tracking towards 200 cumulative units by the end of Q2. That gives investors clear visibility on the shape of the ramp through the rest of the year. Revenue contribution will scale meaningfully as deliveries accelerate. Second, investors should track several leading indicators alongside absolute revenue: one, cumulative shipment growth quarter-over-quarter; two, product gross margin stability and improvement; three, preorder momentum, which we have 1,200 paid preorders on launch day; and four, new revenue lines coming online, for example, our data factory just signed its first sales order, opening up a high-margin, asset-light repeat purchase data business on top of hardware sales. Third, at the strategic level, Q1 marks the start of our device data brain flywheel, that's why FF should be understood, not as a hardware company, but as a 3-in-1 EAI ecosystem platform, and we believe this is only the beginning of the long-term value creation curve for our EAI ecosystem. John Schilling: Thank you, YT, and thank you, everyone, for your time. This concludes our investors Q&A session. We appreciate all the questions submitted and apologize if we couldn't get to all of them today. We remain committed to maintaining open communication with our investors. That concludes today's conference call. Thank you for your participation. Operator: Thank you. This does conclude the conference. You may now disconnect. Before you buy stock in Faraday Future Intelligent Electric, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Faraday Future Intelligent Electric wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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