- \n
- \nYT\u2019s Additional Equity Incentives Tied to Market Cap and\/or Stock Price.\n<\/li>\n
- \nFF Enters Founder + Professional Manager Era with 10 Key Transformations for Company Success at Company\u2019s \u2018FF Stockholder Community and FX Co-Creation Day\u2019 Held Today in Los Angeles.\n<\/li>\n
- \nBusiness Targets: First FX Vehicle Off the Line by 2025 Year-End;\n<\/li>\n
- \nFinancial Targets: Achieve Positive Gross Margin and Operating Cash Flow and Move Toward Overall Profitability.\n<\/li>\n
- \nCapital Targets: Put Stakeholders First, Restore Market Confidence, and Launch a Global AI and AIEV Tech M&A Strategy to Build a Global AI Vehicle Ecosystem.\n<\/li>\n
- \nThe Global Bridge Strategy Supports Restructuring of the US Auto Industry.\n<\/li>\n
- \nCompany to Fully Transform FF to Maximize Stakeholder Value Without Compromise; Stand Firm Against Illegal Short Selling.\n<\/li>\n<\/ul>\n
LOS ANGELES–(BUSINESS WIRE<\/a>)–
\nFaraday Future Intelligent Electric Inc. (NASDAQ: FFAI) (\u201cFaraday Future\u201d, \u201cFF\u201d or the \u201cCompany\u201d), a California-based global shared intelligent electric mobility ecosystem company, today announced that FF Founder and current Chief Product and User Ecosystem Officer (CPUO), YT Jia, has been appointed Co-CEO of the Company. YT will add finance, legal, and supply chain to his direct reporting lines with the current Global CEO of FF, Matthias Aydt, in addition to his current reporting lines. YT will share CEO duties with Matthias Aydt. This marks a fundamental change in top management structure and decision-making in the Company. YT also announced a series of key transformations he hopes will bring Company success. YT\u2019s newly created equity incentive plan is directly linked to market capitalization and stock price.\n<\/p>\nThis press release features multimedia. View the full release here: https:\/\/www.businesswire.com\/news\/home\/20250424591651\/en\/<\/a><\/p>\n
![\"Faraday](\"https:\/\/mms.businesswire.com\/media\/20250424591651\/en\/2449307\/4\/Photo_1.jpg\")
<\/p>\nFaraday Future Announces that Company Founder YT Jia is Appointed Co-CEO of FF, Targeting Tens of Thousands of FX Units to Be Sold Within Two Years of Production.<\/p>\n<\/div>\n
\nOther speakers at today\u2019s event included Lev Peker, FF Board Member, Chair of the Audit Committee & Independent Director at FF, Matthias Aydt, Jerry Wang, Global President of FF, Koti Meka, CFO of FF, Xiao (Max) Ma, CEO of the FX brand (via video), Lou Martinez, Mayor of Hanford (via video), Anthony Rendon, former speaker of the House for the State of California (via video), and Edric Guo, CEO and Head of the Investment Banking Division at Univest Securities. During the meeting, these leaders gave pertinent updates as well as congratulatory messages on YT\u2019s appointment as Co-CEO. YT also gave a number of new business updates and key transformational aspirations for the Company.\n<\/p>\n
A replay of today\u2019s event with speeches can be found here: <\/b>https:\/\/www.ff.com\/us\/FX-CoCreation\/<\/b><\/a><\/p>\n
\nToday\u2019s event, the \u2018FF Stockholder Community and FX Co-Creation Day\u2019 was meant to further increase transparency and real-time communication with FF\u2019s stockholders in an effort to close the information gap, eliminate misunderstandings, and highlight the Company\u2019s fundamental progress. This event was a unique opportunity for all stakeholders to experience FF\u2019s vision, value, and strategy firsthand. The event was held in conjunction with the Company\u2019s employee all-hands meeting and was open to registered guests, including stockholders, followers and fans of FF.\n<\/p>\n
\n\u201cI\u2019d like to extend my warmest congratulations to our founder, YT Jia, on his return to a crucial leadership role as Global Co-CEO of Faraday Future. This is not only a meaningful personal moment for YT, but also a defining one for the future of our Company,\u201d said Matthias Aydt. \u201cIt was wonderful to have our valued stockholders, Developer Co-Creation Officer candidates, members of the global FF community, media, fans, and most importantly, our employees and their families joining us today at this event and along with YT\u2019s appointment as Co-CEO, signals the beginning of a brand-new chapter.\u201d\n<\/p>\n
\n\u201cFF is undoubtedly a pioneer in the global new energy industry, making significant contributions in technological innovation, talent acquisition, and the construction of a technological ecosystem,\u201d said Anthony Rendon, former speaker of the House for the State of California, \u201cFF\u2019s Global Automotive Industry Bridge Strategy exemplifies the globalization and open cooperation spirit we advocate.\u201d\n<\/p>\n
\nIn addition to the FF and FX product experience and Co-Creation, FF was actively recruiting FX Developer Co-Creation Officers during the event, inviting visionary partners to collaborate with the Company in shaping the development of FX product and technology.\n<\/p>\n
The fully translated transcript of YT Jia\u2019s Speech from the 4.24.25 FF Stockholder Community and FX Co-Creation Day follows below (the italicized text is added for highlights):<\/i><\/b><\/p>\n
Introduction<\/i><\/p>\n
\nThank you to Lev and the Board for appointing me. Dear FF colleagues and friends watching online, welcome.\n<\/p>\n
\nToday, I finally have the chance to reintroduce myself \u2014 this time, as the Co-CEO of Faraday Future. I feel a mix of emotions: it’s both a complicated and exciting moment for me.\n<\/p>\n
\nOver the past four years, I\u2019ve carried heavy burdens, and the company has gone through tremendous challenges and trials. Now, both our operating fundamentals and corporate compliance have improved. But once again, several days ago, our stock price has fallen below the one-dollar per share minimum required by Nasdaq. The need for deep transformation can no longer wait.\n<\/p>\n
\nIn a moment, I will announce a series of major transformations for both FF and FX. Together with Matthias, under our new Founder + Professional Manager model, and alongside every FF team member, we will fight to turn the tide. We will rebuild trust and confidence, firmly uphold the principle of putting large stockholders and individual stockholders first, and drive FF and FX toward success, creating maximum value for all stockholders.\n<\/p>\n
Before getting started, I want to make clear that what I am going to say represents my personal views only and are not necessarily those of the Company as a whole or the Board.<\/b><\/p>\n
Adding Finance, Legal, and Supply Chain to My Direct Reporting Lines, Marking Fundamental Changes in Top Management Structure and Decision-Making<\/i><\/p>\n
\nFrom Founder and CPUO to Co-CEO, I am now entrusted with co-leadership and co-decision-making authority over three of the most critical functions in the company: Finance, Legal, and Supply Chain, now jointly managed with Matthias. My existing responsibilities will remain unchanged. With this adjustment, we have seen a fundamental shift in FF\u2019s top-level organizational structure and decision-making dynamics. On the foundation of full legal and regulatory compliance, I will lead the creation of a more rigorous financial management system \u2014 including strict cost control and cash flow discipline \u2014 and build an efficient, cost-effective supply chain to accelerate the achievement of our strategic goals, reaching positive operating cash flow and profitability as soon as possible.\n<\/p>\n
Additional Equity Incentive Plan Fully Tied to Stock Price and Market Cap; $1.2 Million in Promotion Bonus to Be Used for Open-Market Share Purchase With One-Year Lock-Up.<\/i><\/p>\n
\nToday is our second Investor Community Day. I want to sincerely thank the stockholders who are here in person, and all those who continue to support us from afar. Without you, there would be no FF and FX today.\n<\/p>\n
\nAs Co-CEO, my additional new equity incentives are strictly tied to the company\u2019s KPI on stock price market cap, and stockholder interest. It reflects the company\u2019s unwavering belief in putting stockholders first.\n<\/p>\n
\nUpon taking on the Co-CEO role, I am committing to use 100% of my after-tax amount of my $1.2 million promotion bonus to increase my personal stake in FF by purchasing shares in the open market during an open trading window when I do not possess material nonpublic information, with a one-year lock up. I will be one of you, stand shoulder to shoulder with you, and defend FFAI together.\n<\/p>\n
\nTo that end, the Board has adopted a transformative \u201cStockholders First\u201d equity incentive for me as Co-CEO, which is divided into two phases.\n<\/p>\n
Phase One:<\/b><\/p>\n
\nFor every $5 increase in the stock price, or every $700 million increase in market capitalization, I would be granted a 1% equity incentive, capped at 5% for this phase.\n<\/p>\n
Phase Two:<\/b><\/p>\n
\nAfter reaching a 5% ownership stake, for every additional $20 increase in stock price, or every $3 billion increase in market capitalization, I will receive another 1% equity incentive, with a maximum cap of 9% total.\n<\/p>\n
\nThese increases will exclude the impact of stock splits and stock dividends and, in the case of market capitalization, merger and acquisition activity.\n<\/p>\n
\nTo put it simply, in order to earn the full 9% equity incentive, FF\u2019s stock price must exceed $106, which is around 100 times today\u2019s price, or our market cap must reach around $16 billion. By that time, our stockholders would likely have seen exponential returns.\n<\/p>\n
\nI will do everything I can to accelerate improvements in our operating fundamentals and lead the company toward our most critical strategic milestones. I\u2019m confident that, together with the entire FF team, we will deliver on these milestones and create maximum value for our stockholders.\n<\/p>\n
\nWhen this equity incentive is achieved, I will dedicate half of my earnings to repay my debts and fulfill my responsibilities under Chinese law. Returning home after clearing my debts is a mission I must accomplish. While legally I have no debt obligations under U.S. laws, my personal values compel me to act otherwise. I still remain committed morally and personally to fulfilling my responsibilities and giving creditors a proper resolution. I see this as my mission, and I will complete it. The other half, I will reinvest it into the FF ecosystem to help FF achieve even greater success.\n<\/p>\n
Why Appointed Co-CEO Only Now? Four Years of Hardship and Instability Since IPO Point to the Return of the Founder Model as a Path Forward to Safeguard the Company and Deliver Value to Stockholders.<\/i><\/p>\n
\nYou may wonder: why did it take four years after the IPO for me to become Co-CEO?\n<\/p>\n
\nTo answer that, I need to go back to where it all started, when I first came to the United States. Many friends in the U.S. may not know much about me or the story behind FF. So today, I\u2019d like to take a moment to share that.\n<\/p>\n
\nIn 2014, I was 41 years old, I came to the United States alone with the dream of revolutionize the industry. Personally, I invested nearly 700 million US dollars to start FF. It\u2019s now been 11 years. Through countless setbacks and near-death moments, we survived. We fought tenaciously and survived. FF went public on the Nasdaq, delivered production vehicles, and launched our second brand FX serving mass market demands. Today, FF stands as one of the last four remaining new EV startups based in the United States.\n<\/p>\n
\nBut since I voluntarily stepped down as CEO over four years ago, FF has gone through wave after wave of trials and turmoil. Several days ago, Our stock has once again fallen below the $1 threshold. And we must face all the hard questions head on.\n<\/p>\n
\nSome say that FF’s top-level management has long seen complexity, and that management has been chaotic. Some say that FF “got up early but arrived late”.\n<\/p>\n
\nSome mock us for having built \u201conly a dozen cars in ten years\u201d, saying we\u2019re all talk and never truly committed.\n<\/p>\n
\nSome question whether the Global Automotive Industry Bridge can still hold under the storm of rising tariffs.\n<\/p>\n
\nSome worry that the company will have to issue too many shares in order to raise funds.\n<\/p>\n
\nSome are concerned about how long can FF\u2019s cash last.\n<\/p>\n
\nSome say that my personal debt is a burden to FF, and that I\u2019ll never be able to repay it or return home.\n<\/p>\n
\nTruth is, some of these concerns are valid, but many are also misunderstandings and distortions of facts.\n<\/p>\n
\nSo how did the company get to where they ended up today? We need to go back to when I stepped down as CEO and executive Chairman, right before FF went public.\n<\/p>\n
\u201cStepping Down as CEO Is My Deepest Regret\u201d<\/i><\/p>\n
\nFF was preparing to go public in 2021, and there were all these voices constantly ringing in my ears, voices from the SPAC company, from financial advisors, and even from some of our own executives, all urging me to step back. They warned that if I were to remain CEO, my personal debt would impede our fundraising, our IPO, and the company\u2019s future development.\n<\/p>\n
\nAt that critical moment, I gave in. For the sake of the bigger picture, I compromised. I resigned as CEO. I even idealistically believed that bringing in a new CEO, someone who loved the company and would fight for it as hard as I did, would create a powerful alliance, and perhaps that\u2019s the best thing for FF.\n<\/p>\n
\nBut what happened next, many of you have seen with your own eyes. While the company did successfully go public, what followed was a nightmare. The group of bankruptcy directors from Wall Street joined forces with certain former executives and started the Day-One Plan. They inappropriately seized control of FF under the pretense of conducting an \u201cindependent investigation.\u201d I, along with several core members of the Chinese founding team, were stripped of decision-making authority, some of us were even pushed out of the company. I was almost entirely excluded from final decisions. As a result, nearly $1 billion raised through the IPO was burned away, vehicle deliveries were delayed, and the stock price and market cap plummeted. We were literally one vote away from going bankrupt in the board meeting.\n<\/p>\n
\nIronically, it was once said that my debt would hinder fundraising, but quite the contrary, nearly 80\u201390% of the financing we secured still came directly through me, or because of me.\n<\/p>\n
\nYet I had almost no say in how those funds were used. I thought that by compromise and sacrifice, I was doing what was best for the company. I was wrong. What FF experienced instead was an endless series of crises and near-death moments. We found ourselves repeatedly on the edge of bankruptcy. A string of unthinkable disasters, like something out of a cruel novel that I would never be able to predict. But in the end, the FF Global Partner company, then serving as a major shareholder, fought through overwhelming challenges and helped bring FF back from the brink, restored order and defeated the so-called group of Bankruptcy Directors and brought FF back from the brink of bankruptcy. After those bankruptcy directors left, we saw some improvement in our fundamental operations and successfully delivered SOD2. However, due to a variety of lingering issues, the company still operates under a professional manager model, and top-level organizational complexities remain till this day.\n<\/p>\n
\nAfter a lifetime of entrepreneurship, stepping down as CEO is my deepest regret. It turns out that I didn\u2019t drag FF down. Truth is, after I resigned CEO, FF lost its greatest driver forward. It directly contributed to FF\u2019s multiple downfalls and, most painfully, caused many who once believed in us to lose their trust. That breaks my heart.\n<\/p>\n
\nFF is like my child. It carries my lifelong belief, my resources, my passion, my only remaining spark, after years of sacrifice, battles, and hard choices. I\u2019ve invested nearly $700 million of my own money into FF, more than the personal investments of many of the most successful EV founders combined, including those behind Tesla and China’s leading EV startups. And yet today, FF\u2019s market value sits at just around $100 million, barely one-seventh of what I personally put in. The disconnect between FF\u2019s real value and its current valuation is staggering. Our value is far from being truly recognized. So, if we\u2019re talking about losses, I am the one who has lost the most. And that\u2019s exactly why I\u2019m the one most determined to lead this company to success, where it belongs\n<\/p>\n
\nBut I don’t harbor resentment and have embraced these experiences, injustices, and even persecution. I believe this is the price I’m paying for past mistakes.\n<\/p>\n
\nOver the past four years, the company lost the soul it should have had as a startup. During this time, I repeatedly expressed my interest in taking on more responsibilities, these efforts were not successful.\n<\/p>\n
\nToday, I am grateful that the board for making this significant decision during such a critical time. I believe this signals they recognize the founder’s model and spirit can be major fundamental driving forces of a startup. II believe it also suggests an acknowledgement of my past successes and failures as valuable assets, which are the only path to save FF and bring value to shareholders and investors. I thank the Board for making this significant decision during such a critical time. This isn’t for me; it’s for FF and to regain the lost trust.\n<\/p>\n
FF still in crisis \u2014 not the old kind; post-rescue, time to break through<\/i><\/p>\n
\nFortunately, this crisis is unlike those in the past. This time, the challenges stem mainly from broader market downturns and other external, uncontrollable factors \u2014 rather than internal issues. I believe these conditions have contributed to FFAI\u2019s stock price dropping below the $1 threshold, which might trigger a compliance issue. Yesterday when we are running rehearsals, stock price was still below one dollar.\n<\/p>\n
\nIn contrast, I believe that the company\u2019s operational performance and capital structure are currently at their strongest in recent years.\n<\/p>\n
\nThis progress is largely the result of the six key initiatives we launched in May last year under the \u201cBattle to Safeguard FF Dreams\u201d strategy, which led to significant improvements in FF\u2019s business and financial fundamentals. At one point, our stock price surged over 100-fold, with single-day trading volume hitting $3.1 billion. The number of U.S. retail shareholders grew exponentially, and the media even hailed FF as the only “meme stock king” bridging Chinese and American retail investors.\n<\/p>\n
\nLast year was about survival and self-rescue. This year, we\u2019re standing at the threshold of a true breakthrough. While some may see the current stock price pressure as a crisis, we believe it could be the ideal moment to unlock FF\u2019s \u201csecond growth curve.\u201d\n<\/p>\n
Root cause: long-term complexities in top leadership<\/i><\/p>\n
\nLooking back at the true root cause of FF\u2019s stagnation over the past four years, the surface-level issue may appear to be financial challenges. However, I believe the underlying issue has never been money. Instead, I believe it lies in the complexities within the company\u2019s management structure.\n<\/p>\n
\nFor the past four years, I only held advisory rights, not decision-making power for three of the most critical decision-making functions at FF \u2014 Legal, Finance, and Supply Chain. Legal is essential for corporate compliance, but it was often used as a political tool. Finance, the foundation for resource allocation and the company\u2019s value. And the Supply Chain, the most crucial area for cost control, represents a significant portion of the company\u2019s expenses.\n<\/p>\n
\nOver the years, many have blamed me for FF\u2019s problems. However, no matter what position I held or what transpired, as the founder, I\u2019ve always been the biggest “scapegoat,” repeatedly stepping up to take responsibility.\n<\/p>\n
\nToday, I can say with confidence that things have changed. The Day One Plan and their aftermath have finally come to an end.\n<\/p>\n
\nWe have an advanced AIEV technology foundation, and, even more importantly, we are proud to have a dedicated and skilled workforce. However, it is important to acknowledge that our employees have also been impacted by the challenges and distortions within our management structure. Many of them have been with FF and FX for five or even ten years, making them the company\u2019s most valuable asset. It\u2019s now my responsibility to ensure their hard work translates into real value for the company \u2014 and that everyone recognizes their contribution.\n<\/p>\n
Determined to lead FF, revive the glory of LeEco.<\/i><\/p>\n
\nSome may ask, “What makes you believe you can lead FF to success?\u201d Others have questioned whether the failure of LeEco tarnishes my record.\n<\/p>\n
\nTo that, I want to say quite the contrary, my experience with LeEco was the most expensive lesson of my life \u2014 but it is also one of FF\u2019s greatest assets today.\n<\/p>\n
\nOver a decade ago, LeEco built the world\u2019s one and only comprehensive ecosystem spanning eight major sectors: cloud computing, content, television, smartphones, cars, sports, finance, and the internet. LeTV.com became the world\u2019s first video streaming platform to IPO. LeTV Super TV became an industry leader within just three years, and LeTV\u2019s smartphones sold 17 million units in their first year, nearly tripled the 6 million units sold by the iPhone in its debut year. LeTV Mall was once among China\u2019s top three e-commerce platforms. At its peak, LeEco employed over 20,000 people worldwide.\n<\/p>\n
\nWe were at the forefront of the industry \u2014 twice:\n<\/p>\n
\nFirst, with LeEco, the world\u2019s most successful internet ecosystem companies.\n<\/p>\n
\nAgain, in 2017, at CES, when we launched the FF91. At the time, its influence in the industry was nothing short of Tesla. Following Tesla\u2019s electrification revolution, FF propelled the entire new energy vehicle industry from electrification to intelligence.\n<\/p>\n
\nBut not long after, I became the one who fell from the highest peak to the deepest valley, and paid the heaviest price.\n<\/p>\n
\nI want to take this opportunity to express my deepest apology to everyone who once worked at LeEco, and to all those who supported it.\n<\/p>\n
\nI am committed to turning all of my past entrepreneurship and life experiences into the driving force that will lead FF to success. With FF and FX\u2019s success, I will regain the trust I once earned.\n<\/p>\n
FF Enters Founder + Professional Manager Era; Commits to Individual Stockholder First Strategy and New Business, Financial, and Capital Goals; Targets Tens of Thousands FX Units Sold Within Two Years of Mass Production<\/i><\/p>\n
\nSo the question is: how will we lead this company to true success?\n<\/p>\n
\nToday I am standing here, also marking the era of “Founder + Professional Manager” is beginning at FF. We are announcing three major targets for FF in 2025 and 2026.\n<\/p>\n
Business targets: First FX Vehicle Off the Line by 2025 Year-End; Tens of Thousands FX Units to Be Manufactured and Sold Within Two Years of Production<\/i><\/p>\n
\nThe first one is Business target. In 2025, the company will leverage the momentum of the Ultimate AI TechLuxury FF 91 to empower FX, swiftly launch development of three FX vehicle programs to seize blue ocean market opportunities, and secure that our first FX vehicle could get off the line by year-end, build FX Super One as the top choice of AI MPVs in the United States, and reach tens of thousands units sold within two years of FX mass production, subject to securing the necessary rights and funding.\n<\/p>\n
\nOn the sales and user ecosystem front, we kicked off the refundable paid pre-order collection campaign, supported by our user acquisition and operation system, with Ecosystem Co-creation Online Direct Sales and AI platform at its core. The total refundable pre-order volumes could cover the entire 2026 and 2027 production capacity. This would build a strong foundation for rapid ramp-up, striving to make every FX model a hit product, or even a super hit product.\n<\/p>\n
\nIn terms of product technology, we are going all in on AI, accelerating development at full speed across our super AI Hybrid Extended Range (AIHER) system and its technology, AI cabin, and aiDriving platform. Our goal is to equip FF and FX products with super AI capabilities, disruptive product power and technology power.\n<\/p>\n
\nAs for the Middle East strategy, we aim to kick off FX manufacturing and sales in the region as soon as possible, reinforcing its strategic position as the third pole for FF.\n<\/p>\n
Financial Targets: Strive to Achieve Positive Gross Margin and Operating Cash Flow As Soon As Possible, and Move Toward Overall Profitability<\/i><\/p>\n
\nOn our second major target, the financial target, through the gradual realization of our business objectives, we will strive to achieve a positive gross margin in the short term, reach positive operating cash flow as soon as possible, and further push toward overall profitability.\n<\/p>\n
\nAt the same time, we will continue to strictly control expenses and costs, focusing on core operational areas to provide solid support for strategic execution.\n<\/p>\n
\nFinancial compliance is the foundation. We will quickly establish a strong financial management system to eliminate risks such as delayed financial reports and protect the interests of our large stockholders and individual stockholders.\n<\/p>\n
Capital Targets: Put Stockholders First, Restore Market Confidence, and Launch a Global AI and AIEV Tech M&A Strategy to Build a Global AI Vehicle Ecosystem<\/i><\/p>\n
\nThe third would be capital targets. We are building a Stockholder-First Philosophy on the basis of full legal and regulatory compliance to help restore market confidence and drive growth through both operational excellence and strong market performance.\n<\/p>\n
\nWe will launch an M&A Initiative to leverage our unique capital positioning to acquire high-value, cost-effective AIEV technologies and companies around the world, including those in the broader AI-driven mobility ecosystem. These efforts aim to accelerate the recovery of FF\u2019s capital market value back to its true intrinsic value. All of this will be done under full legal and regulatory compliance, with one clear purpose: to maximize long-term value for our stockholders.\n<\/p>\n
10-Punch Combo Fully Transforms FF to Maximize Shareholder Value<\/i><\/p>\n
So, how do we achieve these three categories of strategic goals? I will lead the company to launch a comprehensive set of initiatives \u2014 what we call the \u201c10-Punch Combo\u201d \u2014 to completely vitalize both FF and FX.<\/i><\/p>\n
\nThis time, we\u2019re not just fighting to survive. We are here to win in technology, win in AI, win in the market, win users, win capital, and most importantly, win back trust and respect.\n<\/p>\n
\n1. Transformation of Mentality, Culture, and Values:\n<\/p>\n
\nWe are introducing Stockholders-First Philosophy, Disruptive Spirit, Performance-Is-King Mentality, and Lion-Wolf Culture.\n<\/p>\n
\nWe will let our products, performance, and stock price speak for themselves. We\u2019re bringing the Lion-Wolf Culture to the U.S.: Leadership like lions. Unity like a wolfpack. We ask all hands on deck to reignite our warrior spirit and win back trust. By driving continuous breakthroughs in our business fundamentals, we are determined to maximize value for our shareholders.\n<\/p>\n
\n2. Transformation of Strategy\n<\/p>\n
\nWith our FF and FX dual brands strategy, we are combining the spire market with scalable mass market. Through our Light, Swift, and Empowering model. we aim to rapidly launch mass-market products with extreme price-experience ratio, making AIEVs accessible to every U.S. user as quickly as possible.\n<\/p>\n
\nFX is focused on capturing four major blue ocean opportunities in the U.S. market: extended-range vehicles, AI Cabin with \u201cfridge, TV, and big sofa\u201d comfort features, First Class AI-MPVs, and AIEVs priced under $40,000. Our Bridge Strategy will continue to drive win-win collaboration among global auto industries, helping bring manufacturing and supply chain strength back to the U.S., while supporting the expansion and outreach of the global EV industry\n<\/p>\n
\n3. Transformation of Product and Technology\n<\/p>\n
\nWe\u2019re focused on creating blockbuster products. FX is designed to deliver extreme price-to-performance ratio, the ultimate AIEV for the blue ocean market. We\u2019re going all in on AI, aiming to build the strongest AI mobility ecosystem in the industry.\n<\/p>\n
\nWe\u2019re accelerating the development and implementation of our AIHER system, AI intelligent cabin and aiDriving to deliver an all-round AI solution for the EV ecosystem.\n<\/p>\n
\n4. Transformation of Manufacturing and Delivery Systems\n<\/p>\n
\nWe aim to rapidly build an efficient, secure, and cost-effective global supply chain and manufacturing system, with the goal of reaching tens of thousands of FX units sold within two years of mass production, subject to securing the necessary rights and funding. At the same time, we will significantly strengthen our delivery operations, ensuring we hit every upcoming delivery milestone with precision and confidence.\n<\/p>\n
\nNext, let\u2019s hear a message from Mayor Lou Martinez of Hanford, the city where our FF ieFactory is located. [Video followed]<\/i><\/p>\n
\n5. Transformation of the User Ecosystem\n<\/p>\n
\nWe\u2019re building a one-of-a-kind three-pillar model of user acquisition, user co-creation, and user operation, including the Co-Creation Ecosystem Online Direct Sales System, , designed to make every FX model a hit product\u2014 or even a super hit product. Our efforts aim to accelerate the accumulation of user equity and brand equity.\n<\/p>\n
\n6. Transformation of Government Affairs and Strategic Partnerships:\n<\/p>\n
\nThrough our Bridge Strategy, we\u2019re building strong connections with governments and strategic partners, positioning FF and FX as the golden gateway to unite and integrate the global automotive industry.\n<\/p>\n
\nIn addition to the over 50% localized supply chain foundation, we\u2019ve already built, we are further deepening the localization of core components. Through our Supply Chain Alliance Strategy, we aim to achieve even greater efficiency and robustness in terms of cost control and industrial collaboration, while also supporting the global outreach of our supply chain partners.\n<\/p>\n
\nAs a company that has been deeply rooted in the U.S. for over 11 years, and one that brings unique value to the U.S. economy, FF is actively engaging with government agencies at all levels to explore tariff exemptions and supportive policy opportunities.\n<\/p>\n
\nI will soon share more details with you on our perspective on U.S. tariff policy and our response tactics.\n<\/p>\n
\nNow, let\u2019s hear from Anthony Rendon, the longest-serving Speaker in California State Assembly history and now Speaker Emeritus. [Video followed<\/i>]\n<\/p>\n
\n7. Transformation of Corporate Management\n<\/p>\n
\nWe are treating the company itself as a product, driving a complete transformation of our operations, management, and systems toward productization, platformization, and AI integration to build a low-cost, high-efficiency original innovation system.\n<\/p>\n
\nBy leveraging AI tools, modular operations, and data-driven decision-making, we are creating a lightweight, AI management system, one that\u2019s built for the future mobility.\n<\/p>\n
\nWe will fully transition our company management and systems toward productization, platformization, and AI integration. (We\u2019re going to transform how we manage the company by treating our tools and services like scalable products, building a flexible tech platform that others can grow with, and deeply integrating AI into everything we do). Our goal is to build a low-cost, high-efficiency, original innovation system.\n<\/p>\n
\n8. Transformation of Financial Systems\n<\/p>\n
\nWe will build stronger financial and compliance systems and use AI to transform financial systems.\n<\/p>\n
\n9. Transformation of Organization and Incentives\n<\/p>\n
\nEveryone\u2014from top management to frontline staff\u2014should be aligned in goals and willing to execute with full commitment and urgency. Get rid of outdated, egalitarian reward systems roll out incentive schemes that are tied to shareholder interests. Create a clear system of rewards and punishments: reward outstanding performance heavily, and penalize poor performance just as strongly.\n<\/p>\n
\nBuild an ecosystem organization that breaks down the traditional boundaries between AI, technology, industrial sectors, and mobility industries. Introduce and implement this ecosystem organization model into the automotive industry.\n<\/p>\n
\nThe key to organizational change is the reconstruction of incentive mechanisms. The company is exploring the possibilities of wider application of our \u201cStockholder First\u201d Incentive, that closely ties employee rewards to company performance, to the management team and, eventually, to more key employees across the organization.\n<\/p>\n
\n10. Transformation of Capital and Stockholder Value Generation\n<\/p>\n
\nStockholder First, maximize the interests of all stockholders, especially individual investors.\n<\/p>\n
\nIn addition to the above nine major changes, we will maximize stockholder value by working with co-creator shareholders to implement demands and suggestions.\n<\/p>\n
\nWe firmly oppose a reverse stock split and resolutely safeguard the company\u2019s public listing status.\n<\/p>\n
\nWe have officially launched a campaign to combat illegal short selling and have already issued legal letters. We do not rule out possibilities to further pursue other measures like legal action.\n<\/p>\n
\nI believe that the company will restore its true value in the near future, and we will spare no effort in strengthening its fundamentals.\n<\/p>\n
\nToday, the return isn\u2019t just about me\u2014It\u2019s the gradual return of FF\u2019s founding spirit, of our partnership culture.\n<\/p>\n
\nWhat I\u2019m fulfilling is not only a founder\u2019s promise to the company, but a commitment to every stockholder, and every supporter who has stood by us.\n<\/p>\n
\nThrough action, we\u2019ll prove to the capital markets\u2014and to every partner and user who has supported us. We will win back confidence and trust.\n<\/p>\n
\nToday sees our stock price back above the one dollar threshold, thanks to all the support and trust from our stockholders.\n<\/p>\n
\nWhether it\u2019s FF or FX, originality, transformation, and disruption are in our DNA.\n<\/p>\n
\nWe\u2019re not just building products\u2014we\u2019re building a community of dreamers and doers who share one vision, a partner ecosystem.\n<\/p>\n
\nOver the years, I\u2019ve carried the weight of misunderstanding, blame, even punishment\u2014deserved or not, I bear it all.\n<\/p>\n
\nTrue entrepreneurship is never a smooth road. It means walking into the headwind. Taking risks\u2014often alone. The heart of an entrepreneur isn\u2019t fragile\u2014it\u2019s forged like diamond.\n<\/p>\n
\nThe more pressure it endures, the brighter it shines. The more it\u2019s tested, the stronger it becomes.\n<\/p>\n
\nThis journey\u2014from darkness to light\u2014is the most authentic and powerful brand story of FF and FX. I was the outlier, swept aside by the tides of change.\n<\/p>\n
\nAnd now\u2014I am the one who lights a spark in the ruins, carrying the dream, fighting my way back against the headwind.\n<\/p>\n
\nToday marks the breaking of shackles and the lifting of the weight that once held me back. With this newfound freedom, I now have the chance to lead the company to soar, unlocking its full potential and delivering maximum value to our shareholders and investors.\n<\/p>\n
\nI\u2019m back, Futurism is back, back to win.\n<\/p>\n
ABOUT FARADAY FUTURE<\/b><\/p>\n
\nFaraday Future is a California-based global shared intelligent electric mobility ecosystem company. Founded in 2014, the Company\u2019s mission is to disrupt the automotive industry by creating a user-centric, technology-first, and smart driving experience. Faraday Future\u2019s flagship model, the FF91, exemplifies its vision for luxury, innovation, and performance. The new FX strategy aims to introduce mass production models equipped with state-of-the-art luxury technology similar to the FF 91, targeting a broader market with middle-to-low price range offerings. For more information, please visit https:\/\/www.ff.com\/us\/<\/a>.\n<\/p>\n
FORWARD LOOKING STATEMENTS<\/b><\/p>\n
\nThis press release includes \u201cforward looking statements\u201d 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 \u201cestimates,\u201d \u201cprojected,\u201d \u201cexpects,\u201d \u201canticipates,\u201d \u201cforecasts,\u201d \u201cplans,\u201d \u201cintends,\u201d \u201cbelieves,\u201d \u201cseeks,\u201d \u201cmay,\u201d \u201cwill,\u201d \u201cshould,\u201d \u201cfuture,\u201d \u201cpropose\u201d 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 Faraday X, future management and operational changes, building stronger financial and compliance systems, production and sales goals, financial and capital goals, potential reverse stock splits, launching a global AI and AIEV technology M&A strategy, potential collaborations with participants in the global auto industry, the development and commercialization of AIHER and EREVs, and AI-related investment and developments, are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company\u2019s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements.\n<\/p>\n
\nImportant factors, among others, that may affect actual results or outcomes include, among others: the Company\u2019s ability to secure the necessary funding to execute on its AI, EREV and Faraday X (FX) strategies, each of which will be substantial; the Company\u2019s ability to design and develop EREV technology; the Company\u2019s ability to design and develop AI-based solutions; competition in the AI and EREV areas, where actual or potential competitors have or are likely to have substantial advantages relative to the Company, including but not limited to experience, expertise, funding, infrastructure and personnel; the ability of the Company to execute across multiple concurrent strategies, including the UAE, bridge strategy, or FX, EREV, AI, and US geographic expansion; the Company’s ability to secure necessary agreements to license third-party range extender technology and\/or license or produce FX vehicles in the U.S., the Middle East, or elsewhere, none of which have been secured; the Company’s ability to homologate FX vehicles for sale in the U.S., the Middle East, or elsewhere; and the Company’s ability to secure necessary permits at its Hanford, CA production facility; the potential impact of tariff policy; the Company\u2019s ability to continue as a going concern and improve its liquidity and financial position; the Company\u2019s 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\u2019s limited operating history and the significant barriers to growth it faces; the Company\u2019s history of losses and expectation of continued losses; the success of the Company\u2019s payroll expense reduction plan; the Company\u2019s ability to execute on its plans to develop and market its vehicles and the timing of these development programs; the Company\u2019s 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\u2019s vehicles; the Company\u2019s ability to cover future warranty claims; the success of other competing manufacturers; the performance and security of the Company\u2019s vehicles; current and potential litigation involving the Company; the Company\u2019s 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\u2019s indebtedness; the Company\u2019s ability to cover future warranty claims; the Company\u2019s ability to use its \u201cat-the-market\u201d program; insurance coverage; general economic and market conditions impacting demand for the Company\u2019s 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\u2019s 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\u2019s stock price. You should carefully consider the foregoing factors and the other risks and uncertainties described in the \u201cRisk Factors\u201d section of the Company\u2019s Form 10-K filed with the SEC on March 31, 2025, and other documents filed by the Company from time to time with the SEC.\n<\/p>\n
<\/p>\n
View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20250424591651\/en\/<\/a><\/span><\/p>\n
\nInvestors (English): ir@faradayfuture.com<\/a><\/p>\n
\nInvestors (Chinese): cn-ir@faradayfuture.com<\/a><\/p>\n
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