Faraday Future Intelligent Electric Inc. has announced a $45 million financing agreement with a U.S.-based institutional investor, providing fresh capital to accelerate its embodied artificial intelligence (EAI) ecosystem strategy, including developments in robotics and electric vehicles.
The company confirmed that the full funding amount was received on the same day the agreement was signed. Of the total, $15 million is immediately available for operational use, while the remaining $30 million has been placed in a controlled deposit account and is expected to be released in phases, subject to certain conditions.
According to the company, the financing is structured through two notes. The first note, valued at $15 million, carries an annual interest rate of 9%, with provisions for higher rates in case of default. The second note is secured against the funds held in the deposit account. The agreement also includes provisions for staged redemptions over a period beginning six months after closing and extending up to 24 months.
Redemptions under the agreement may be made either in cash or through the issuance of common stock, depending on market conditions and the company’s financial position. The conversion price for equity-based redemptions will be linked to prevailing market prices, calculated using either the most recent closing price or a five-day volume-weighted average price, whichever is lower.
The financing transaction was facilitated by Univest Securities, which acted as the exclusive placement agent. The company noted that the agreement includes standard provisions related to covenants, default conditions, and shareholder approval requirements in line with Nasdaq regulations, including a cap on share issuance unless further approvals are obtained.
Faraday Future stated that the new capital will be directed toward advancing its “Three-in-One” EAI ecosystem strategy. This includes scaling its EAI robotics business and supporting the phased rollout of its FX Super One electric vehicle platform. The company indicated that the funding is expected to cover a substantial portion of its initial strategic goals in the robotics segment.
Founder and Global Co-CEO YT Jia described the financing as one of the company’s most favorable transactions in recent years, citing reduced potential dilution for existing shareholders and a deferred redemption structure. He noted that the notes are not redeemable for at least six months and that any share conversion will be based on future stock prices rather than current valuations.
Jia also highlighted that approximately 120 million shares may be reserved for potential conversion, though these would not be issued during the initial six-month period. The actual number of shares issued would depend on market conditions at the time of conversion, potentially reducing dilution if stock prices improve.
The announcement follows the recent closure of a regulatory review by the U.S. Securities and Exchange Commission (SEC), which concluded without enforcement action. Company leadership suggested that the successful completion of the financing shortly thereafter reflects renewed confidence from institutional investors.
In parallel, Faraday Future outlined key proposals ahead of its 2026 Annual Meeting of Stockholders. These include a plan to increase authorized shares by approximately 45%, or around 140 million additional shares, primarily to support financing needs and equity incentives. The company is also seeking approval for a potential reverse stock split, which it described as a contingency measure aimed at maintaining compliance with Nasdaq listing requirements.
Additionally, the company announced changes to its corporate governance structure, including the appointment of new executive directors to its Board and an ongoing restructuring of its management team. These measures are intended to strengthen oversight and improve operational performance.
Faraday Future emphasized that the combination of new financing, governance changes, and strategic focus on EAI technologies is aimed at enhancing long-term shareholder value while advancing its position in the evolving mobility and intelligent systems market.
