Faraday Future Unveils Independent Robot Funding to Revive Market Value

After 12 years of storytelling and fewer than 20 cars delivered, Faraday Future (FF) has finally played a different card.

It's spinning off its robot business for independent funding, aiming to restore its market value to the level at its 2021 Nasdaq listing.

On August 6, FF announced four key measures under its 'Four-Core All-Intelligence' robot capital value return campaign.

First, it will lock the minimum conversion price of existing convertible notes at no less than $5 per share. This mechanism prevents excessive dilution when the stock price is low, signaling that FF will not sell shares at a discount.

Second, it will disclose weekly progress on convertible note conversions or debt reductions, addressing long-standing criticism of opaque capital structure and showing investors the dilution progress.

Third, the core action: exploring independent funding for the robot business and a future public listing. This spin-off reduces dilution at the FF level and allows the robot segment to raise funds on its own pace, potentially creating a standalone 'FF Robot' public company.

Fourth, it plans to reduce total liabilities from $230 million to below $100 million within three to four quarters. New funding will be primarily used for the robot business, not legacy debt.

The target of returning to IPO-level market value within two years is backed by robot business progress: initial sales revenue and positive gross margin expected in Q1 2026, with 157 units shipped from March to July. The 2026 shipment target has been raised from 1,000 to 1,500 units.

FF Global Executive Chairman Jerry Wang said, "The return of capital value is not only a return to financial targets, but also a return of market confidence." The market cap curve from $4.5B to $0.2B and back to $4.5B resembles a U-shape, and whether it completes depends on whether the robot business can support the story once told for cars.