**Bullish Points:**
1. **Research and Development (R&D) Expenses**: R&D expenses decreased significantly by $16.4 million (76%) to $5.2 million for the three months ended September 30, 2024, and by $89.5 million (85%) to $15.2 million for the nine months ended September 30, 2024.
2. **Sales and Marketing Expenses**: Sales and marketing expenses decreased by $2.7 million (51%) to $2.6 million for the three months ended September 30, 2024, and by $11.2 million (62%) to $6.9 million for the nine months ended September 30, 2024.
3. **General and Administrative Expenses**: General and administrative expenses decreased by $15.7 million (66%) to $8.3 million for the three months ended September 30, 2024, and by $28.3 million (42%) to $39.3 million for the nine months ended September 30, 2024.
4. **Settlement on Accrued R&D Expenses**: The company recognized a gain of $14.9 million for the three and nine months ended September 30, 2024, from settling previously accrued R&D obligations at amounts lower than initially estimated.
5. **Change in Fair Value of Notes Payable and Warrant Liabilities**: The company recorded a gain of $8.3 million for the three months ended September 30, 2024, and $28.9 million for the nine months ended September 30, 2024, due to revaluation at lower fair values.
**Bearish Points:**
1. **Net Loss**: The company reported a net loss of $77.7 million for the three months ended September 30, 2024, and $234.6 million for the nine months ended September 30, 2024.
2. **Revenue**: Revenue decreased by $0.5 million (98%) to $9,000 for the three months ended September 30, 2024, compared to the same period in 2023. For the nine months ended September 30, 2024, revenue decreased by $0.2 million (45%) to $304,000.
3. **Cost of Revenues**: Cost of revenues increased by $5.3 million (33%) to $21.5 million for the three months ended September 30, 2024, and by $40.4 million (177%) to $63.1 million for the nine months ended September 30, 2024.
4. **Lease Impairment Loss**: The company recorded a lease impairment loss of $7.7 million for the nine months ended September 30, 2024, due to moving out of leased facilities.
5. **Loss on Disposal of Property, Plant, and Equipment**: The company recognized a loss of $2.6 million for the three months ended September 30, 2024, and $2.5 million for the nine months ended September 30, 2024, related to the abandonment of certain assets.
6. **Loss on Settlement of Notes Payable**: The company recognized a loss of $59.1 million for the three months ended September 30, 2024, and $117.5 million for the nine months ended September 30, 2024, due to the settlement of notes payable.
7. **Interest Expense**: Interest expense increased by $1.4 million to $1.4 million for the three months ended September 30, 2024, and by $4.8 million to $5.4 million for the nine months ended September 30, 2024.
8. **Related Party Interest Expense**: Related party interest expense increased by $1.1 million to $1.2 million for the three months ended September 30, 2024, and by $7.7 million to $7.8 million for the nine months ended September 30, 2024.
9. **Cash and Cash Equivalents**: As of September 30, 2024, the company had unrestricted cash on hand totaling $7.3 million.
10. **Debt**: The company had significant related party notes payable and notes payable facilities, with total notes payable of $79.7 million as of September 30, 2024.
**Summary:**
Faraday Future Intelligent Electric Inc. (FFAI) has shown some positive signs in terms of reducing expenses in R&D, sales and marketing, and general and administrative areas. Additionally, the company has benefited from gains related to the settlement of accrued R&D expenses and the revaluation of notes payable and warrant liabilities. However, the company faces significant challenges, including substantial net losses, declining revenue, increased cost of revenues, and significant losses related to lease impairments, disposal of assets, and settlement of notes payable. The increase in interest expenses and related party interest expenses, along with a relatively low cash balance and high debt levels, further complicates the financial outlook.
For more information, you can read the original text of Faraday Future Intelligent Electric Inc.'s financial report.
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