Faraday Future Investor Presentation Deck slide image

Faraday Future Investor Presentation Deck

Summary of Risk Factors (continued) . . FFIE may be classified as a PRC "resident enterprise," which could result in unfavorable tax consequences to us and our non-PRC enterprise stockholders. FFIE and our stockholders face uncertainty with respect to indirect transfers of equity interests in China resident enterprises through transfer of non-Chinese-holding companies. PRC regulation of loans to and direct investments in PRC entities may delay or prevent us from making loans or additional capital contributions to our PRC Subsidiaries. The PRC government can take regulatory actions and make statements to regulate business operations in China with little advance notice so our assertions and beliefs of the risks imposed by the Chinese legal and regulatory system cannot be certain, and actions related to oversight and control over offerings that are conducted overseas and/or foreign investment in issuers with substantial operations in China could significantly limit or completely hinder our and the Selling Securityholders' ability to offer or continue to offer shares of Class A Common Stock $0.0001 par value, and warrants to purchase shares of Class A Common Stock to investors and cause the value of our securities to significantly decline or be worthless. 8 The approval of, or filing or other administrative procedures with the China Securities Regulatory Commission or other PRC governmental authorities may be required in connection with certain of our financing activities, and, if required, we cannot predict if we would obtain such approval or complete such filing or other administrative procedures. Certain PRC rules and regulations establish complex procedures for some acquisitions by foreign investors that could make it more difficult for us to grow in China. The complexity, uncertainties and changes in PRC regulations on internet-related business, automotive businesses and other business carried out by FFIE'S PRC Subsidiaries could adversely affect FFIE. We face challenges from the evolving regulatory environment regarding cybersecurity, information security, privacy and data protection. Any independent auditor operating in China that FF engages for its operations in China is currently not permitted to be subject to inspection by the Public Company Accounting Oversight Board ("PCAOB"). U.S. regulatory bodies may be limited in their ability to conduct investigations or inspections of our operations in China. There may be difficulties in effecting service of legal process, conducting investigations, collecting evidence, enforcing foreign judgments or bringing actions in China against us and our management. Source: S-1/A October 7, 2022. Ⓒ2022 FARADAY FUTURE 37 PROPRIETARY AND CONFIDENTIAL
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