Insider Brief
- Faraday Future raised $105 million, including $82 million in new commitments, to fund the launch and production ramp-up of its FX Super One EV, targeting the AI-driven, affordable EV market.
- The financing, led by global and Middle Eastern investors, offers more favorable terms than previous rounds and will support expansion of FF and FX brands and AI technologies.
- The company and key executives received Wells Notices from the SEC over alleged 2021 disclosure violations, potentially impacting future engagements with major investors and banks.
PRESS RELEASE — Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI) (“Faraday Future”, “FF” or the “Company”), a California-based global shared intelligent electric mobility ecosystem company, announced that it has secured approximately $105 million in new cash financing, which includes $82 million of new financing commitments described below. The Company expects that it will have sufficient capital to launch its new product, FX Super One, upon closing of the financing, and intends to use the funds to accelerate development and distribution efforts for its FF and FX brands and AI-related technologies, support the ramp up of FX Super One initial production while building on the momentum for the upcoming product launch taking place on July 17, 2025.
“The $105 million in additional funding will significantly strengthen the Company’s ability to launch FX Super One and scale up the production readiness,” said Jerry Wang, Global President of Faraday Future. “With our efficient operation, we plan to maximize the impact of this capital to further drive our strategy to be a leader in the U.S. market for affordable AI EVs.”
The $105 million transaction is structured with a $82 million in new financing commitments (“New Financing”), primarily in the form of unsecured convertible notes (“Convertible Notes”) and warrants (“Warrants”) to acquire additional shares of the Company’s Class A common stock (the “New Financing”) and $22 million in cash received from previous investors pursuant to the conversion and exercise, as applicable of convertible securities issued in prior financings. The initial conversion price of the Notes to be issued in the New Financing is the lower of the market closing price of the Company’s Class A common stock on July 11, 2025 and the average daily weighted average price of the Class A common stock for the two trading days following the date hereof (“Conversion Price”), and initial Warrant exercise price is 120% of the Conversion Price, in each case, subject to certain adjustments. Univest Securities is acting as the Placement Agent for the New Financing.
The New Financing is mainly funded by existing fundamental institutional investors, including Master Investment Group, the Company’s Middle East strategic partner and investment firm of Sheikh Abdulla Al Qassimi from Ras Al Khaimah, United Arab Emirates. Certain new fundamental institutional investors also participated in the New Financing. The terms of the New Financing is more favorable to the Company compared to the previous recent financing, including a meaningful reduction in warrant issuance to reduce dilution, and a lockup from investors ending on the earlier of (i) 6 months from the date of the second closing for the New Financing and (ii) the effectiveness of a registration statement registering for resale by the investors the securities issued to such investors at such second closing, which the Company has the option to file in its sole discretion, demonstrating strong confidence from investors.
The shares of Class A common stock underlying the Convertible Notes and Warrants to be issued in the New Financing will initially be unregistered and not immediately tradable. The Financing is subject to customary closing conditions. For additional information regarding the material terms relating to the Financing, please see the Company’s Form 8-K to be filed with the SEC on July 16, 2025.
The Convertible Notes, along with the Warrants and other securities in the New Financing, will be offered and sold in a transaction exempt from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”), pursuant to the exemption for transactions by an issuer not involving any public offering under Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D of the Securities Act and in reliance on similar exemptions under applicable state laws.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the convertible notes, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
Wells Notice from SEC
The Company and two of its executives, Mr. YT Jia and Mr. Jerry Wang, and two other former Company employees, recently received a Wells Notice from the U.S. Securities and Exchange Commission (the “Commission”) stating that the Commission staff made a preliminary determination to recommend that the Commission file an enforcement action against them, alleging violations of various anti-fraud provisions of the federal securities laws, marking a preliminary conclusion to the more than three-year investigation. If the Company, Jerry and YT are able to resolve these matters with the Commission, it could facilitate the Company’s engagement with top-tier investment banks, major institutional investors, and strategic investors.
The alleged violations generally pertain to purported false or misleading statements in connection with the Company’s 2021 PIPE and SPAC listing, relating to (i) related party transactions and (ii) Mr. YT Jia’s role in the Company. An enforcement action may seek an injunction or cease-and-desist order against future violations of provisions of the federal securities laws, the imposition of civil monetary penalties, disgorgement or other equitable relief within the SEC’s authority, or any combination of the foregoing. In the case of individuals, an enforcement action may also seek a bar from serving as an officer or director of a public company.
A Wells Notice is neither a formal charge of wrongdoing nor a final determination that the recipient has violated any law but is a preliminary determination by the Commission staff to recommend to the Commissioners of the Commission that they authorize the filing of an enforcement action. The Company, Jerry and YT plan to engage with the Commission staff about why an enforcement action is not warranted. If the Commission determines to proceed with an enforcement action and the parties do not reach a settlement, the Commission would need to proceed through a formal litigation process, during which the Company, Jerry and/or YT, as applicable, could defend themselves. For additional information regarding the Wells Notice, please see the Company’s Form 8-K to be filed with the SEC on July 16, 2025.
The Company remains committed to its “Shareholder First” principle and to maximizing long-term stockholder value.
ABOUT FARADAY FUTURE
Faraday Future is a California-based global shared intelligent electric mobility ecosystem company. Founded in 2014, the Company’s mission is to disrupt the automotive industry by creating a user-centric, technology-first, and smart driving experience. Faraday Future’s flagship model, the FF 91, exemplifies its vision for luxury, innovation, and performance. The FX strategy aims to introduce mass production models equipped with state-of-the-art luxury technology similar to the FF 91, targeting a broader market with middle-to-low price range offerings. FF is committed to redefining mobility through AI innovation. Join us in shaping the future of intelligent transportation. For more information, please visit https://www.ff.com/us/.
Contacts
Investors (English): ir@faradayfuture.com
Investors (Chinese): cn-ir@faradayfuture.com
Media: john.schilling@ff.com
