Climate Change Data

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Limited operating history under current business model, no production vehicle sales.
• Incurred losses and anticipate continued losses; may never achieve profitability.
• Significant increase in operating expenses expected.
• Inability to manage future growth or improve systems, processes, and controls.
• Reliance on assumptions and analyses in operating results forecast.
• Potential inability to meet future capital requirements.
• Substantial existing indebtedness and potential for additional debt.
• Debt agreement covenant restrictions limiting business operations.
• First vehicle production not expected until Q1 2022 (if at all).
• Five identified material weaknesses in internal control over financial reporting.
• Dependence on revenue from limited number of vehicle models.
• Nascent and not established market for vehicles.
• High dependence on single-source suppliers.
• Potential economic distress or bankruptcy of suppliers.
• Challenges in sale and marketing of vehicles (volatile demand, potential range/performance/quality variations from estimates, brand establishment difficulties, consumer awareness, competition, high branding costs, inability to keep up with technological changes, insufficient dealer partners).
• Complex software and technology systems development challenges.
• Lack of licenses and rights in certain technologies, software, and content.
• Risks associated with in-house manufacturing in Hanford, California.
• Reliance on third-party contract manufacturer in South Korea.
• Potential challenges in establishing a joint venture in China.
• Economic, operational, and legal risks specific to China.
• Complexity, uncertainties, and changes in PRC regulations.
• Adverse effects from changes in U.S. and international trade policies.
• Limitations on independent registered public accounting firm operating in China.
• Increased price competition in the automotive industry.
• Risks related to natural disasters, health epidemics, terrorist attacks, civil unrest, and the COVID-19 pandemic.
• Challenges in attracting and retaining key employees.
• Potential for employee strikes or work stoppages.
• Risks associated with product defects, recalls, and warranty costs.
• Potential for product liability claims.
• Potential inability to obtain patent protection on certain technologies.
• Risks associated with protecting technologies as trade secrets.
• Competition from better-funded competitors with strong patent portfolios.
• Limited patent coverage outside the United States and China.
• Risks and difficulties in enforcing intellectual property rights, particularly in China.
• Potential for lawsuits for infringement or misappropriation of intellectual property.
• Stringent and changing laws, regulations, standards, and contractual obligations related to data privacy and security.
• Cybersecurity risks relating to systems and software.
• Complex and stringent data protection and privacy laws and regulations.
• Risks associated with self-driving functionality (security and safety failures, liability, complex and changing regulations).
• Potential inability to obtain regulatory approval for vehicles.
• Increased environmental and safety regulations.
• Risks related to anti-corruption, anti-bribery, anti-money laundering, economic sanctions, and other laws and regulations.
• Increased costs, supply disruptions, or shortages of materials.
• Competition in the automotive industry.
• Developments in alternative technologies affecting demand for electric vehicles.
• Developments in new energy technology affecting demand.
• Risks associated with lithium-ion battery cells (fire, smoke, flame, mishandling).
• Inability to guarantee customers access to efficient charging solutions.
• Risks associated with international operations.
• Potential inability to obtain and maintain sufficient insurance coverage.
• Changes in tax laws.
• Changes in government financial support, incentives, and policies for electric vehicles.
• Limitations on using net operating loss carryforwards and other tax attributes.
• Increased complexity and risk of audit or examination by taxing authorities.
• Inability to provide financing, leasing, or subscription arrangements for vehicles.
• Risks associated with direct-to-consumer leasing, financing, or subscription arrangements.
• Dependence on key personnel.
• Circumstances affecting Founder Yueting Jia’s reputation.
• Unresolved legal proceedings and claims.
• Dual-class common stock structure and potential for super-enhanced voting rights for FF Top Holding Ltd.
• Potential for depressed trading price and volatility of Class A common stock.
• Lack of analyst research or negative reports affecting share price.
• Dependence on appreciation in Class A common stock price for investor returns.
• Potential for write-downs, write-offs, restructuring, impairment, or other charges.
• Failure of Business Combination benefits to meet investor expectations.
• Volatility in trading price of securities.
• Lack of public market for capital stock prior to Business Combination.
• Failure to implement controls and procedures required by Section 404(a) of the Sarbanes-Oxley Act.
• Exemptions from disclosure requirements as an emerging growth company.
• Increased expenses and administrative burdens as a public company.
• Potential issuance of additional shares diluting stockholder interest.
• Exclusive forum for stockholder litigation in Delaware Court of Chancery.
• Potential for charter documents and Delaware law to prevent favorable takeovers.
• Claims for indemnification by directors and officers reducing available funds.
• Exercise of registration rights affecting market price of Class A common stock.
• Concentration of ownership delaying or preventing a change in control.

Supply Chain Management

Climate-Related Risks & Opportunities