The open letter states that in the past year, FF has made great progress despite limited funds and facing severe headwinds in the global economy, including the changing landscape of the electric vehicle industry. In 2023, FF will begin to enter the revenue delivery stage, forming a closed operating loop of user acquisition, delivery, and user operations. More and more American industry leaders will become the first batch of FF car owners and developer co-creators; the company's operating fundamentals have changed. The new management team is capable and hard-working. We believe that this is a critical period for the company's business growth and a good time for the company's next stage of development.
According to the open letter, FF has invested US$3 billion so far to build an industry-leading electric vehicle platform,IAI technology, product development and manufacturing capabilities. The company's disclosed third quarter report for 2023 shows that the company's net assets are US$261.8 million. FF's self-operated factory in Hanford, California is expected to have an annual production capacity of 10,000 units in the future, with an investment of more than US$200 million. FF's dual-home cultural foundation provides competitive advantages in the two major tram markets of China and the United States, and it is expected to enter the Middle East market in 2024. Beginning in the third quarter of 2023, the company's flagship product FF 91 2.0 Futurist Alliance will enter the second phase of the three-phase delivery plan.
The open letter also stated that the company continues to make progress in financing and believes that FF will successfully complete a new round of financing. Efforts are also underway to tighten the conversion of convertible notes and suspend the use of ATMs and ELOCs. The company has reduced its monthly cash expenditures and cut non-essential expenses for the new phase of development, while continuing to balance business investments, which are critical to the company's growth.
Faraday Future also announced its next steps, as follows:
1. Operations: Optimize and upgrade operations to achieve future sustainability.
Reduce costs and improve expenditure efficiency, including daily operations and FF 91 material costs.
Continue to deliver products to top celebrities and opinion leaders.
Through the FF cooperation and co-creation model, we can achieve industry leading advantages in product strength, technical strength and the “Ji Zhi Technology Top Luxury” brand position.
Deeply cultivate the dual home markets of the United States and China and the third pole of the Middle East.
Rapidly implement industrialization, product technology access and localization, and the establishment of a user ecosystem in the Middle East.
2. Products and technology: Continue to improve the product and technical capabilities of FF 91 2.0.
Middle East product planning and implementation: FF 91 2.0 aiFalcon launched this year.
Develop the next generation product FF 92 to maintain FF's leading edge in product and technical strength.
Focus on the application research and development of AI technology and maintain its leading position in the vertical application of generative artificial intelligence in the travel field.
3. Manufacturing/supply chain: Accelerate debugging and upgrading of FF ieFactory equipment to lay the foundation for mass production.
Comprehensively improve the factory manufacturing system and promote the comprehensive upgrade of the production and manufacturing quality system.
Promote the integration of global supply chains and establish a global strategic supplier system.
Further promote supplier quality and production capacity enhancement, improve the supply chain quality performance system and reduce costs.
4. Financing and Finance:
Continue and accelerate current plans and bring in strategic investors.
Optimize and upgrade the company's financial system in three regions, improve financial efficiency, establish healthy and sustainable cash flow management, and achieve positive cash flow as soon as possible.
The open letter states that it is believed that FF has the foundation to support future development, but it still needs to obtain additional funds. Since the start of deliveries in 2023, the company has been taking steps to reduce operating and supply chain costs to support the achievement of strategic objectives.