Hello, everyone. Thank you so much for being here with us today. It is my pleasure to introduce to you Jerry Wang, Executive Chairman of Faraday Future.
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 two or three minutes, and then I will open the floor for questions for five 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 $7 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 United States. 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 six 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 three to five 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 libe 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 Los Angeles, 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 $500,000 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.
Instead, having a four-leg dog can walk freely, takes much less cost, and very, very efficient on the energy control, but also having cameras, having lidars, and even it has a temperature detector, more like a military technology. At night, when the camera does not work, you can see different temperatures, and people can see in this user interface about everything. Right now, each property will have at least one or even multiple security guards. I think very quickly in the near future, maybe one security guard can control 20 robotic dogs, and the dogs can do the automatic surveillance, and it will be a central room. It has 20 screens. The security, one guy can oversee 20 dogs, can perform and oversee 20 different sites. Think of how much productivity it can increase and how much value it can create.
Each dog we are selling, those dogs, the cheapest we are selling is about $4,000. If you have multiple advanced top hats, for example, LiDAR and siren, we are selling $20,000, $30,000. Very affordable compared to one security position, 24/7, we are talking about $200,000 per year on an average cost. That is how efficient we are moving forward our business. Very last is on the data factory.
We already generated 2,000 hours per month on August 2026. We are in the process of doing 20,000 hours per month by year-end. Already generate $400,000 revenue by October, and the revenue numbers continue to grow. We have orders from the large AI companies all buying our data because of the diversity, because those are real data, and because we package the data, we clean the data, we tag the data really, really well for them to train their advanced frontier foundational models.
This is our device portfolio. As you can see, we have almost 20, more than 20 different devices. Humanoid, we have lots of humanoids. We just announced a very small one, like Nova. We are selling $2,500. The Nova Mini is a desktop robot. We are selling $200 or $300. The kids really love it. You can do the programming, say that there is a We develop all this software by ourselves. There is a camera so people can move, and it will capture those motions, and the robot will do exactly the same moves no matter how small or how large it is. The kids really enjoy having a very good time doing so. For the dogs, this is for education. All the rest dogs are for civilians and industrial applications. All this wheel-based, we have very, very strong demand.
Most of the factory owners would like to replace. They understand they are not able to replace 50% of the labor force by robot right now, but at least they like to see. Buying five, buying 10, see how it goes, develop those skills with us together, and gradually to replace the labor force as much as possible. This is our RoboShare business. We are not only selling robot, but we are leasing robot as well. For people still spending $4,000, $10,000 buying a robotic device, some people will hesitate. No problem. Rent one from us. We are renting $300, $500, $1,000 per day for some important events, or if you wanted to try it out from your factory, from your warehouse, from your home, no problem. Rent one, and we will perform task for you. Also, if you own one, no problem. Put it on our platform.
You can use it however that you want. When you do not use it can continue to generate income for you, and we are going to help you take care of all these leasing demands. We already generate revenue on the RoboShare platform. We have lots of purchasing orders, and it is growing from Los Angeles. We are starting in New York and in some other cities as well. Very lastly, talking about some financial numbers.
This is actual delivery. This is not forecast. We started delivery in March this year. We only sell 22. It is the very beginning. But in September, we sold more than 250 once, and it is continued to grow. As you can see, this momentum is great. First year, actually, this is unaudited management financials, but we are looking at something like 30% gross margin with some more than $1 million revenue that we create.
We estimate by year-end, we will have $7 million revenue. We try to sell. We feel very confident to sell 2,000 robots by year-end. We are targeting a less smaller gross margin because we do not want to sell it too expensive. We want to sell as many as possible to keep this wheel spinning going forward. Next year, we are targeting 30% gross margin, and this increase is not because we price it higher, but because of the software revenue will pick up because each of the robot we sell will continue to generate software revenue. Next year, delivery number will be more than 7,000 as a target, and the margin will be 31%, and the revenue we are trying to generate is something around $50 million.
By end of 2030, five-year projection, we are talking about $1 billion revenue target and a 50% gross margin, again, because of the increase of the software revenue generating from the whole ecosystem. This is our financial projection. This is much asset light compared to automotive business. We estimate by end of 2028, we will be break-even, both from operating cash flow as well as from a net income perspective. The cumulative funding that we need is less than $150 million. We believe that we will create significant, meaningful value compared to the overall funding needs. So great ROI experience, great ROI opportunity. Very last, some peer comparison. Two very well-known. One is Figure AI, is private. Valuation is $40 billion or even higher. They haven't sold and delivered any one single robot yet. One almost public company, Agility Robotics, is merger with a SPAC, with Churchill.
Their valuation is $2.5 billion. Last year, they generate something around $1.7 million revenue, but a negative 150% gross margin. They try to do everything by themselves. They are exactly having the humanoid do the factory work. In five or 10 years, that might be possible or very likely to be possible. But is this the best solution as of today? It is absolutely not. Our valuation is something around $150 million- $200 million. Start trading ticker under FFR. We believe this is a very good It has a significant upside opportunity compared to other peers. We are doing a reverse merger right now. The agreement has already been signed with FFR, and we are targeting to get it closed very soon. After closing, Faraday Future, our parent company, and management will own something like 75%. PIPE investor, we are doing a common equity-only PIPE.
PIPE investor will own something like 5%, and the public float with the previous existing FFR shareholders will own something around 10%. So very clean, very healthy cap table, and this company have almost no liability as well. That is about it. We only have five minutes. We will do a quick robotic demonstration, and then I will open floor for questions.
Thank you. As you can see, it is very agile. It can do lots of cool movements, dancing, entertainment, and it can talk to you as well and giving you hospitality. It is perfect for the hotel front desk concierge for greetings. It still needs some people protection. Why there is no music? Oh, I see. All right, that's about it. Yeah, before I hit someone. All right, yeah. I'll open floor for question. Thank you. Yeah, please.
How long does that last until it's got to charge or how does that work?
Regarding the battery capacity as well as charging, we're able to charge it very fast, like less than one hour and that should be fine. And, just by standing up, it can stand up for three to four hours, but by doing some specific tasks, it will take lots of battery. So under normal usage, we're talking about one half to two hours per charge.
A half an hour?
One and a half
One and a half
One and a half to two hours per charge. Something like that. Yes. This structure, actually this is very heavy. This weighs 100 pounds.
Yeah.
Yeah, and just by having it standing up takes a lot of energy.
Yeah.
So that's why in the very beginning I was sharing this is less efficient to do actual daily work. Maybe in future, three to five years with the battery capacity improvement as well as more advanced hardware, software architecture, this would be more efficient. But as of now, I really doubt it can do actual, meaningful, real-world tasks. Yes, please.
Can you talk a bit about the regulatory environment, and I know DJI was having a little bit of sell their products. Their ability to sell.
Yeah. Thank you very much. Yeah, it's actually a great question. As we know, the China robotic companies are much advanced or significantly advanced compared to the U.S. ones. By year-end, I think the industry estimate, or at least my estimate, in China will be selling 50,000 or even more humanoid robots by year-end, the full year 2026. But in the United States, except us, I guess the number will be less than 1,000. This is a huge difference between the development, how mature the robotic industry is between U.S. and China. The mainly regulatory arm for the robotic is FCC, Federal Communications Commission, and they already ban all the foreign robotic, physical AI robotic product from coming into United States. So we're a U.S. company. We develop our software skills capabilities in the U.S. We plan to start manufacturing in the U.S.
We're doing assembly and quickly manufacturing in the U.S. starting early next year, so we're fully compliant with the FCC requirement. It's actually a good thing for us to having a onshore local U.S. company doing the robotics business and continuing to grow our portfolio in here.
Thank you.
Yes, sir.
You mentioned reverse merger with FFR. Could you just talk us through the strategic rationale of that?
That's a great question. Strategic rationale between the reverse merger of our robotic company and FFR. We believe the robotic company is still at early stage as we can see we're generating less than $10 million revenue by year-end as of our projection. But we try to pair it with a relatively clean public company to form a pure play, pure physical AI ecosystem company that the market can do its own valuation. If we combine with our existing vehicle business, then you have two business. Tesla is doing great. That's not a problem for Tesla.
But for us, if you have existing car business and on top of that you have a robotic business, when people buying shares or doing the valuation, it might be too complex, especially the robotic business is at its very beginning, early startup stage. We're seeing as a pure public trading company only focusing on the robotic business can give market a better understanding about the valuation as well as future growth opportunities. Yes, sir.
What do you think your manufacturing capacity could be in, say, 2027 or following year? How many of these can you produce in the U.S.?
Yeah, that's a great question. We have no concern, or we're quite confident to reach those unit projections, and here is the reason. We come up from a vehicle manufacturer background. It's much, much more complex to manufacture a car compared to a robot. On the car, we're talking about four major steps. You have welding, you have crash, you have stamping, and you have final assembly. Even for the final assembly alone, we're talking about 3,000 parts. But for this baby, we're talking about 200 parts. It's much less complex compared to manufacturing cars, so we feel quite confident about that. Yeah, we're running out of time. Thank you very much.