Faraday Future cancels ~49.9M warrants, restructures July financing

Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI) announced it has terminated warrants to purchase 5,359,525 shares of Class A common stock through agreements with two investors, bringing its cumulative warrant cancellations to approximately 49.9 million shares since 2025, according to a press release.

The latest terminations follow the cancellation of warrants covering 44,551,199 shares in December 2025. The company said the eliminations reduce potential dilution and simplify its capital structure.

Separately, Faraday Future amended and restated a securities purchase agreement originally dated July 14, 2025, related to a convertible note financing. The first closing under the original agreement was completed on August 22, 2025. Under the amended terms, certain investors will no longer receive common stock purchase warrants in subsequent closings, the volume-weighted average price condition to closing has been removed, and the original single second closing has been divided into eight separate closings. Each closing will occur only after the company has received at least $5 million of additional funding since the immediately preceding closing, unless otherwise agreed upon.

The company filed a Current Report on Form 8-K with the U.S. Securities and Exchange Commission on July 10, 2026, disclosing additional details about both the warrant termination agreements and the amended securities purchase agreement.

Faraday Future, headquartered in Los Angeles, California, describes itself as an embodied AI ecosystem company. The company has disclosed that it currently lacks sufficient share capital to meet obligations and execute its strategy, and has noted the risk of seeking bankruptcy protection if future financing efforts fail.

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