Faraday Future, a California-based technology company specializing in artificial intelligence electric vehicles (AIEV), has announced that it has secured approximately $30 million in cash financing commitments. These funds will play a critical role in accelerating the company’s growth and supporting the development of the Faraday X (FX) strategy. This initiative focuses on launching affordable, high-performance AIEV vehicles equipped with cutting-edge technology, addressing a significant gap in the U.S. mainstream EV market. The financing will also be used for general corporate purposes.
As part of the FX strategy rollout, Faraday Future (FF) is set to receive its first two FX prototype mules in Los Angeles later this month. These vehicles will undergo product development and testing at FF’s manufacturing facility in Hanford, California. Before arriving at their final destination, the prototype mules will make a stop in Las Vegas from January 5 to 7, 2025. During this stop, FF plans to provide updates on its FX strategy, showcasing the brand’s vision and direction.
The $30 million financing commitment includes a pre-funded $7.5 million, received in the fourth quarter of 2024, and $22.5 million in new cash commitments. This funding, structured in the form of unsecured convertible notes (“Convertible Notes”) and warrants (“Warrants”), is part of FF’s broader financial strategy. The Convertible Notes have a conversion price of $1.16 per share, while the Warrants’ exercise price is $1.392 per share. Both prices are subject to adjustments as outlined in the agreement. The shares of common stock underlying the Convertible Notes and Warrants are currently unregistered, subject to trading restrictions, and are not immediately tradable. The completion of the financing is contingent upon customary closing conditions. Further details about the material terms of the financing will be available in the company’s Form 8-K, which will be filed with the SEC on December 23, 2024.
“The new funding lays a solid foundation for both FF and its new brand as the company approaches the end of 2024 and enters the new year,” said Matthias Aydt, Global CEO of Faraday Future. “I am optimistic about the opportunities that this new funding will bring, including supporting the ongoing production of our FF 91 2.0 and the growth of the FX brand,” Aydt added.
Jerry Wang, President of FF Global Partners and Head of Corporate Development at FFIE (Consultant), expressed his confidence in the company’s trajectory: “We are pleased to have supported FF in successfully completing this round of financing. We are enthusiastic about the promising opportunities ahead for the FX brand and firmly believe in FF’s ability to execute its strategy effectively and deliver significant value in the process.”
The Convertible Notes and Warrants were offered and sold in a transaction exempt from the registration requirements of the Securities Act of 1933, 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. Similar exemptions under applicable state laws were also relied upon. Consequently, the Convertible Notes, Warrants, and underlying shares of common stock issuable upon conversion or exercise may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from registration requirements.
To facilitate future liquidity, FF has agreed to file one or more registration statements with the Securities and Exchange Commission (SEC) to register the resale of the shares of common stock issuable upon conversion of the Convertible Notes and exercise of the Warrants issued in connection with the financing. However, this press release does not constitute an offer to sell or the solicitation of an offer to buy the Convertible Notes or any other securities, nor does it represent an offer, solicitation, or sale in any jurisdiction where such activities would be unlawful before registration or qualification under applicable securities laws.
Faraday Future is a pioneer in the Ultimate AI TechLuxury market, setting new benchmarks in the electric vehicle industry. Combining luxury with innovation, the company leverages artificial intelligence and user-generated data to create an ever-evolving, interactive in-car software and operating system. This system optimizes the user experience within a global ecosystem of contributors who shape the innovative FF model. Faraday Future is committed to redefining the EV landscape through its unique approach to technology and design.
