Faraday Future SPAC Presentation Deck
Risk factors - (cont'd)
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We will depend on revenue generated from a limited number of models of vehicles in the foreseeable future.
The market for our vehicles is nascent and not established. In particular, the market for ultra-luxury electric vehicles may not develop in accordance with our expectations or at all.
We are highly dependent on our suppliers, the majority of which are single-source suppliers, and the inability of these suppliers to deliver necessary components of our products according to our schedule and at
prices, quality levels and volumes acceptable to us, or our inability to efficiently manage these suppliers, could have a material adverse effect on our business and operating results.
If any of our suppliers become economically distressed or go bankrupt, we may be required to provide substantial financial support or take other measures to ensure supplies of components or materials, which
could increase our costs, affect our liquidity or cause production disruptions.
We, our outsourcing partners and suppliers are subject to substantial regulation and unfavorable changes to, or failure by us, our outsourcing partners or our suppliers to comply with, these regulations could
substantially harm our business and operating results.
We face a number of challenges in the sale and marketing of our vehicles, including, without limitation:
Demand in the automobile industry is highly volatile.
Final delivered range, performance and quality of our production vehicles may vary from estimates.
We may not succeed in continuing to establish, maintain and strengthen the Faraday Future brand.
Many consumers are not aware of the benefits of our products.
We compete with other automotive manufacturers for consumer spending.
It is expensive to establish a strong brand.
Our failure to keep up with rapid technological changes could make our vehicles less attractive than those of competitors or make potential customers unwilling to pay a premium for our vehicles
We may not be able to attract a sufficient number of dealer partners to support our expected sales volumes.
There are complex software and technology systems that need to be developed in coordination with vendors and suppliers in order to reach production for an electric vehicle such as ours, and there can be no
assurance such systems will be successfully developed.
We have yet to obtain licenses and other rights in certain technologies, software, and content needed for our vehicles and we may face technical difficulties and attendant delays in integrating such technologies in
our vehicles. Licensing third party technology carries risks that are difficult to control. Accordingly, we may need to modify aspects of planned vehicle designs and alter features.
Our decision to manufacture our own vehicles in our Hanford, California facility significantly increases our anticipated capital expenditure and does not guarantee we may not incur significant delays in the
production of our vehicles.
Production and manufacturing of some of our vehicles will be outsourced to a third-party contract manufacturer in South Korea on which we will be heavily reliant. If such contract manufacturer fails to produce and
deliver our vehicles in a timely manner for any reason, our business could be materially harmed.
We may establish a joint venture in China to produce vehicles for the Chinese market and elsewhere. No definitive documentation with respect to the contemplated joint venture in China has been executed. As a
result, the joint venture may not occur or occur on substantially different terms than described herein. There is no guarantee or assurance that we will be able to establish a joint venture in China or elsewhere.
2021 FARADAY FUTURE
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