Faraday Future raised $25 million for its robotics pivot. The fine print tells a different story.

"Faraday Future announced on Thursday that it has raised $25 million through convertible promissory notes, bringing its total financing over the past two months to $70 million. The company says the capital is sufficient to fund Phase 1 of its robotics business plan through the end of 2026. The stock, which trades on Nasdaq under the ticker FFAI, closed below $1 per share and is currently under a Nasdaq deficiency notice for failing to maintain the minimum bid price requirement."

"Of the $25 million, only $12.5 million goes directly into the company's operating account. The remaining $12.5 million is deposited into control accounts held by the investors, and will be released to Faraday Future only upon satisfaction of certain undisclosed conditions. The press release describes "institutional investors' confidence" in the company's prospects but does not name any of the investors. The shares underlying the convertible notes are unregistered and subject to trading restrictions."

"The company's own risk factors, filed with the SEC, acknowledge that it currently lacks sufficient share capital to execute its strategy and that obtaining stockholder approval for additional shares could result in "substantial additional dilution." Faraday Future is pivoting from electric vehicles to what it calls "Embodied AI," positioning itself as a physical AI company that delivers both humanoid and bionic robots."

"The company says it shipped 68 robots as of 30 April, with a full-year target of 1,500 units across four product lines aimed at education, security inspection, reception and guided tours, performance, and university research. Its Q1 2026 financial results reported that the robotics business achieved positive gross margins and generated ecosystem revenue, though the company did not disclose the total revenue figure in its press release."

Faraday Future raised $25 million through convertible promissory notes, bringing total financing over two months to $70 million. The company stated the funds are sufficient to support Phase 1 of its robotics business plan through the end of 2026. Only half of the proceeds entered the company’s operating account, while the other half was placed in investor control accounts and released only after certain conditions are met. The convertible notes’ underlying shares are unregistered and subject to trading restrictions. The stock trades below $1 per share and remains under a Nasdaq deficiency notice for failing to meet minimum bid price requirements. The company is pivoting from electric vehicles to “Embodied AI,” targeting humanoid and bionic robots, and reported positive gross margins and ecosystem revenue for robotics in Q1 2026.

Read at TNW | Electric-Vehicle