AIXC M&A announcement

Please go ahead. Good morning, everyone.

My name is John Schilling, Global Director of Public Relations, Communications, and Government Affairs at Faraday Future. Thank you for joining our conference call to discuss the proposed transaction with FF EAI Robotics and AIxC, and introduce the soon-to-be Faraday Future FF EAI Robotics Ecosystem Inc., which will officially begin trading under the new identity and ticker, FFR, starting September 30, 2026. 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 Jia, our Founder and Global CEO.

Thank you, John. Good morning, everyone, and thank you for joining us today. First and foremost, I'm very happy to share a major milestone with you. FF's robotics business has taken a big step toward its independent public listing. Yesterday, September 28th, Nasdaq-listed AIxC, soon to be FFR, announced a proposed combination with FF EAI Robotics to start a major strategic restructuring. This could make it number one public traded pure-play Four-Core Full-Stack AI ecosystem company. It could put us in a stronger position to lead the global Embodied AI robotics industry. It would also put us on a faster path to maximize the strategic and the capital market value of FFR's robotics ecosystem. At the same time, FF AI announced a major strategic upgrade. We plan to become a robotaxi and EAI cabin shared mobility operations company, as well as a Physical AI investment holding company.

Our goal is to help drive the next wave of change in the auto industry and the Physical AI once again. These initiatives represent a significant step forward in our journey to become a leading Physical AI ecosystem company. First, we are taking a major step to accelerate the development and value realization of our robotics business. FF AI and AIxC have signed a non-binding term sheet under which AIxC proposes to acquire and consolidate our robotics assets and business at an approximately $200 million market-based valuation, and FF AI would receive AIxC shares in exchange, where FF AI is expected to become AIxC's single largest controlling stockholder. Following AIxC's previously announced name change to FF EAI Robotics Ecosystem Inc., new ticker symbol FFR beginning tomorrow, we believe this transaction has the potential to create one of the most unique public robotics platforms in the market.

Our aim is to become the first Nasdaq-listed pure-play robotics ecosystem company built on a Four-Core Full-Stack AI ecosystem in the U.S. Most importantly, upon completion of the proposed transaction, FF AI is expected to become the largest controlling stockholder of FFR and continue participating in the future value creation of the robotics business. Following completion of the proposed transaction, FF AI is expected to consolidate FFR's financial results into its own financial statements, subject to FF AI's resulting ownership interest and applicable accounting standards and to the definitive agreements. This is not a divestiture in the traditional sense. Instead, it is a strategic restructuring designed to provide the robotics business with an independent platform for growth, financing, valuation recognition, and execution, while allowing FF AI shareholders to continue benefiting from its long-term upside.

Subject to closing of the proposed deal, FFR will provide a standalone platform to highlight and unlock the value of the robotics business, which may gradually reduce reliance on substantially dilutive financing and is expected to significantly reduce FF AI's potential equity dilution. Following the strategic upgrade of its automotive business, a lighter operating model is expected to help substantially reduce costs. Together, these initiatives are intended to help FF AI's intrinsic value be better recognized and accelerate the maximization of value for stockholders. We believe robotics and Physical AI represent one of the largest opportunities of the next decade. Our vision is built around what we call the Four-Core Full-Stack AI ecosystem: EAI Brain and Developer Platform, EAI Devices, Industry Productivity Solutions, and EAI Data Factory.

Together, these components create a powerful closed-loop ecosystem where deployments generate data improves intelligence enhances products, and stronger products drive broader adoption. In less than one year, we have already made substantial progress. We completed phase one of our Built in USA acceleration program. We launched 24 FCC-certified products across three robot forms. We have started customer deliveries and achieved cumulative sales and shipments of 552 EAI devices by the end of August. Under preliminary projections prepared by FFAI management for the FF EAI Robotics business on a standalone basis, the business is projected to reach positive operating cash flow in the third quarter of 2028, with cumulative funding requirements of approximately $150 million before then. In 2026, total revenue across the Four-Core Full-Stack AI ecosystem is projected to reach $7.1 million, with a positive growth margin of 9.9%.

For 2027, we project $45.7 million in revenue and a growth margin of 30.5%, marking our entry into a high-growth margin phase. Over five years, cumulative revenue is projected to reach $1.98 billion, with growth margin rising gradually to 54% in 2030. We also plan to invest an estimated total of $300 million in R&D over five years so we can stay ahead in both breadth and technology. Our EAI device sales targets are 2,001 units in 2026 and 7,400 in 2027. Over five years, the target is more than 130,000 units. Beyond devices, the ecosystem is rapidly taking shape. Our proprietary EAI Brain has entered engineering, testing, and delivery. Developer Platform 1.0 is live. Our EAI Data Factory has established its first commercial closed loop, and RoboShare has already secured multiple paid orders.

These achievements give us confidence that our robotics strategy is transitioning from concept to execution and from execution towards scale. Based on this five-year plan, once the transaction is completed, our goal is for FFR to remain among the top three EAI robotics ecosystem companies overall over the next five years. The second major strategic upgrade involves our automotive business. When I first proposed the four future trends of electrification, AI, internet, and sharing many years ago, I believed the automobile industry would eventually evolve beyond vehicle ownership into intelligent, connected, shared mobility systems. Today, we believe that transition is accelerating. As a result, Faraday Future Intelligent Electric Inc. plans to evolve from being primarily an intelligent EV manufacturer into a robotaxi and EAI cabin technology operator. This transformation includes three key initiatives.

First, we plan to enter robotaxi operations and explore connectivity with autonomous mobility networks, including potential integration opportunities with the Cybercab ecosystem. Second, we intend to extend our EAI cabin technologies beyond FF vehicles and into other intelligent vehicle platforms. Third, we plan to enable FF vehicles themselves to participate in future robotaxi networks. Through collaboration with RoboShare, we also plan to pursue opportunities in vehicle onboarding, operations, fleet management, mobility services, and user support. This represents a lighter asset operating model that aligns with where we see the industry heading. Rather than relying solely on manufacturing scale, we can leverage technology, software, operations, data, and ecosystem partnerships to create additional revenue streams and improve capital efficiency. Beyond these business transformations, we are also evolving our corporate structure. Faraday Future Intelligent Electric Inc. plans to strengthen its role as a Physical AI investment incubation and holding company.

Our long-term vision is inspired by proven structures such as Berkshire Hathaway and Alphabet, where a central platform incubates, supports, and grows multiple businesses while allowing them to operate independently and maximize their individual value. The proposed robotics transaction represents the first important step in that strategy. Over time, our goal is to establish a model that combines industrial operations, capital investment, business incubation, and ecosystem collaboration to create multiple engines of growth. This structure is designed to help reduce the valuation discount that often occurs when multiple businesses are bundled together under a single corporate framework. It also creates the potential for mature businesses to pursue their own financing, strategic partnerships, and growth opportunities while remaining connected to the broader FF ecosystem. We believe these initiatives can unlock value across four key dimensions. First, strategic value. FFAI will maintain meaningful ownership in the publicly traded robotics company while advancing its broader Physical AI strategy.

Second, business value. The combination of robotics, robotaxi operations, mobility services, data platforms, and AI technologies creates significant ecosystem synergies and multiple growth opportunities. Third, financial value. Independent reporting structures can provide greater transparency into business performance, capital requirements, profitability, and growth trajectories. Fourth, capital market value. A dedicated public platform for robotics may enable investors to better recognize the value of that business independently, while potentially reducing financing pressure and dilution at the FFAI parent level. We are still in the early stages of executing this vision. The proposed transaction remains subject to definitive agreements, board approvals, regulatory approvals, financing arrangements, and other customary closing conditions. However, what excites us most is the opportunity ahead. We believe Physical AI will become one of the defining technology platforms of the coming decade.