AIXC LD Micro 20th Annual Main Event Conference

Thank you very much. Greetings, ladies and gentlemen. Thanks a lot for joining us today. My name is Jerry Wang. I am the Executive Chairman of Faraday Future Robotics. We are a California company, public traded on Nasdaq, and we believe we are the first physical AI ecosystem company as a publicly listed company in the United States. It sounds fancy, but what we do is very straightforward. We build robots. This is one of our products. Looks amazing. I will quickly introduce the company for approximately 10 minutes, then we will do a quick robotic show demonstration for 2 or 3 minutes, and then I will open the floor for questions for 5 minutes or so. Let us get started. We started as an intelligent electric vehicle manufacturer company, founded in California 12 years ago. We raised a lot of money, approximately $4 billion. We built two brilliant vehicles.

As we can see from the market development, for those well-established electric vehicle companies, for example, Tesla, are all expanding their portfolio into robotics. Actually, there is a lot of similarity of building cars and building robots, right? It has very similar product definition, very similar manufacturing, supply chain, quality control, sales, after sales, and much straightforward and much less complicated compliance, at least from a hardware perspective. Definitely, the robot market, the robot industry, is definitely a huge blue ocean market that I believe will be fast-growing for the next 10 or 20 years. My personal belief is that there will be more robotic products compared to human beings in the next 10 years or so. We are talking about 10 billion device opportunities in the next 10 years. Faraday would like to be part of it.

The stock is public traded under the ticker of FFR, and so far we are doing great. We officially start this pivot from beginning of this year. We start sales of our product in March, and up to today, we already sold more than 800 of them, making us ranking number one in the United States regarding unit of shipment, actual shipment into the market. Our target this year is to generate approximately $70 million revenue and sell approximately 2,000 robot. We are on track of doing so. Every month that we reach record high monthly delivery. We are very excited about the future coming months and future coming years. We will continue to ramp up and continue to generate meaningful value to the industry as well as to our shareholders. What makes us different? There are many robotic companies, right?

There is a lot of them in China. There is many of them in the U.S. So what makes us different? What is the difference between Faraday and, for example, Tesla or Figure? First of all, we are a very small company compared to them. But on the other hand, our path is quite unique. I like to highlight two things. The first, we believe that our strategy is more like an Android platform. We are an open ecosystem. We are like an open-looped platform. And we believe that there should be one brain, have multi forms, and multi-form do multitasks. Unlike Tesla, which is doing great, right? They have one brain, having one form as general humanoid, and try to have the humanoid do as many tasks as possible. That is not wrong. But as of today, most question that I have been being asked is, what can robot actually do?

To be honest, those general form humanoid are great. Very advanced technology, very complicated to make. But what can it do as of now or in the next 6 months? Quite limited. Can it clean your home? Probably not. Can it like doing the security and surveillance? Probably not. Can it start actual work in the manufacturer facility? Probably not as of now. So what is our solution? If I go back to our first slide. We believe in one brain. You cannot develop multiple brains. One brain, open platform, multiple forms. As you can see, we have almost 24 different form of robot. Multiple forms doing multiple tasks, which is very straightforward and very practical to train. We want to bring real-world value as of now instead of in the next 3-5 years. So that is what our core belief.

People ask, what can those robot do? We have three different types of robots. The first is humanoid. We have a larger one, as you can see in the middle of the screen. We have a smaller one. This is the smaller size. And we have mini version of the humanoid as well. First of all, for those humanoid are perfect for entertainment, performance, hospitality-related works. And we have a second type or form of robot. It is a robotic dog. We call it quadrupeds. The dogs are perfect for, the first, education. Similar to we grew up, our parents buy us computer to learn Microsoft, to learn programming. For our next generation, the parents would love to buy robots for them to get familiar of the physical AI. What does it mean the next 10, 20 years when they grow up?

How does it mean to live together with robot? And how to understand AI, how to do the vibe coding, how to control the robot, and have the robot be a physical AI agent work for you instead of having it replace your job. Right? The dog in the middle is perfect for safety and surveillance. Thinking, especially in L.A., the safety is not so great. And having a dog, we can do it right now. Having a dog do the automatic surveillance, no matter at night, at your yard, around your house, home, or say, at your office space or your warehouse, your factory, having dog do the automatic surveillance. It has a camera, it has a lidar, 3D mapping technology that we develop in-house by ourself, as well as it has a siren. So it has a facial recognition.

It will know you, know your family, know your colleagues, know your working people. But if it sees strangers, in the automatic surveillance, the siren will alarm, it call the police, send you phone notifications, making sure that your whole family is protected. We have a third form, which is the industrial application. We call it mobile manipulator or the wheel-based solutions. It is actually on the very right side of our portfolio. This is perfect for the industrial application. There are multiple U.S. robotic company, for example, Tesla, using full-scale humanoid, try to do the factory work. They are not wrong. But to be honest, having this baby standing up at the current technology will cost almost half of the battery capacity out. Having that form standing up. So why having a so complicated product doing most of the basic works?

We are not trying to replace the whole factory by robot. As long as there is 10%, 20%, very simple job can be replaced by robot right now. This can create significant value. As we know, both labor shortages as well as the high labor cost cause U.S. manufacturer lots of problem. So right now, we are not trying to solve everything altogether in awesome technology, but we are trying to solve it step by step. Why not have a mobile manipulator that have a wheel-based instead of a two-leg, very easy to train and almost take no energy to stand up, and have a very simple hardware architecture with two straightforward hand or arm doing all the simple works. Moving objects from point A to point B, helping with all the manufacture process, and helping with all the logistics.

It is very simple to train, it is very efficient to work, and the cost is amazingly low. Our cost is 20% compared to the normal average humanoid robot available at market right now. So all of that advantage leading us to the current financial result, which is in half a year, we already deliver more than 800 unit, with first half of this year, 30% positive gross margin. We hope to continue to ramp up very quickly. Our five-year target is to be the top three U.S. robotic companies regarding to the unit of sales as well as ecosystem revenue. So I keep saying ecosystem. What does a ecosystem mean? Are you a just pure hardware company? Actually, we are not. We are building a four-core full stack ecosystem. Device is very important. It is physical AI. But just having a robot hardware looks cool. What can it do? You need not only to have different kind of device doing different tasks.

The second is you need data to train those robot. You need real-world data to train those robots. We are gathering lots of data. We are generating 2,000 hour per month data from our data factory business right now. We use to train our robot. We are selling those datas to large AI companies to train their AI infrastructure capabilities as well. We already generate almost half a million dollar revenue on the data factory side. What does it train? It trains the brain. It trains the brain to having more data, to understand more how to do the more efficient on the surveillance. How does the education can be more effective, designing courses and coming up with solutions for kids to really familiar and have a really big interest in the robotic devices and knowledges.

This brain will be very helpful to our industrial productivity solutions, which is the fourth core of our ecosystem. We want those robots to be in the factory right now, to be in the workspace right now, to have practical daily solutions with a very, very affordable price. Those four ecosystems work together as a flywheel, similar to Tesla. The more cars that they sell, the more data they can get, the better their full autonomous driving capability will have, the more cars they are able to sell. Very similar. The more devices we are selling, the more data that we can gather, the smarter the brain will be, the better industrial solutions that we can develop by ourself, and hopefully, the more devices we can sell.

We are starting to see this positive spin of this flywheel, demonstrated by each month's record high delivery, starting from March till September, and we believe this will continue to go on and beyond. This is a business progress we have achieved so far. On the brain, 100% deployed. We already have 100 skills and 200 developers on our platform developing those skills. Device, we already sold 817 by end of September, and October sales number is looking great. By year-end 2026, we will have multiple industrial productivity solutions. For example, on this chart, we show our safety and surveillance solution we develop in-house by ourself. This is mainly conducted by a robotic dog. Why you need a humanoid to do all the safety and the inspection? It is very less efficient.