Faraday Future outlines convertible note and financing plan changes

Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI) announced a set of capital structure initiatives, including a $5.00 per share conversion price floor on existing convertible notes, weekly disclosure of conversion activity, and plans to explore standalone financing for its robotics business.

The company said it intends to maintain the $5.00 floor price for all existing convertible notes, subject to applicable law and contractual obligations. It also plans to publish weekly updates on conversions or debt reductions tied to those notes, in addition to required regulatory filings.

Faraday Future said it aims to pursue equity financing structures in place of convertible note financings and explore a standalone capital raise for its robotics business, including potential future independent public listing opportunities, subject to negotiation with counterparties.

On liabilities, the company stated a goal of reducing total liabilities from $230 million as of the end of the first quarter of 2026 to less than $100 million within four quarters. It said it plans to allocate the substantial majority of any newly raised funds toward its robotics business rather than repayment of historical debt.

"By establishing a conversion price floor, providing comprehensive disclosure of conversion activity under existing convertible notes, and maintaining rigorous capital discipline, we are aiming to build a solid capital foundation for the potential standalone financing and long-term development of our robotics business," said Jerry Wang, Global Executive Chairman of FF.

The company said additional details on its capital value plan are expected to be discussed during its upcoming second quarter 2026 earnings call. The announcement is based on a company press release and involves forward-looking statements subject to material risks, including the company's ability to continue as a going concern and its current inability to pay outstanding obligations.

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