Gasgoo Munich- Faraday Future (FF) announced that $45 million in financing from U.S. mid-to-large institutional investors has fully landed. Founder and Co-CEO Jia Yueting noted the deal closed less than a month after the U.S. Securities and Exchange Commission (SEC) concluded its investigation without penalties — a signal that capital markets are betting on FF's strategy and business momentum.
Image Source: Faraday Future
The deal marks FF's lowest-cost dilution and most favorable terms in years. Under the agreement, investors cannot redeem cash or convert shares until six months after closing — effectively a six-month lock-up period. Crucially, the conversion price will hinge on the market price at that future date, not the current valuation. FF only needs to reserve authorized shares subject to approval at the annual shareholder meeting. Jia illustrated the upside: if FF's stock rebounds above $1, the number of shares issued upon conversion would shrink, leaving the remaining equity with the company.
Proceeds will primarily accelerate FF's "trinity" EAI ecosystem strategy, with a focus on the EAI robotics business and the phased delivery of the FX Super One. This capital essentially covers the funding requirements for the first phase of the EAI robotics strategy. Additionally, FF plans to host an EAI Developer Ecosystem Forum in the San Francisco Bay Area on April 25, where it will unveil an open-source developer platform.
FF has scheduled its annual shareholder meeting for May 22, where investors will vote on proposals including a 45% increase in authorized shares, totaling 140 million. Roughly 120 million of those shares are earmarked for the current institutional investors, with the remainder set aside for future financing and team incentives.
Jia emphasized that the reverse stock split proposal is merely a backup plan to maintain NASDAQ listing compliance. The company prefers to drive the stock price back above compliance thresholds by improving its fundamentals within six months. Recently, founding members Jerry Wang and Lucky Jiang were appointed executive directors, as management pushes for a major overhaul to sharpen its focus on performance and oversight mechanisms.
