{"success":true,"data":{"pressRelease":{"id":"133297","rtpr_id":"nBw69N36a","ticker":"FFAI","exchange":"NASDAQ","all_tickers":["FFAI"],"title":"Faraday Future Announced that It has Entered Into Incremental Warrant Termination Agreements With Each March 2025 Financing Investor as It Continues to Make Progress in Reducing Its Debt and Improving Its Capital Structure","author":"Business Wire","published_at":"2026-09-02T00:40:00.180Z","article_body":"Faraday Future Announced that It has Entered Into Incremental Warrant\nTermination Agreements With Each March 2025 Financing Investor as It Continues\nto Make Progress in Reducing Its Debt and Improving Its Capital Structure\n\n\n * Under the Termination Agreement, the Company has cancelled all 21,021,369\noutstanding Incremental Warrants issued in the 1st to 3rd closings pursuant to\nits March 2025 Financing, permanently removing the potential dilution\nassociated with their future exercise.\n\nFaraday Future Intelligent Electric Inc. (NASDAQ: FFAI) (“Faraday Future”,\n“FF” or the “Company”), a California-based global Embodied AI (EAI)\necosystem company, today announced that it has entered into Incremental\nWarrant Termination Agreements with each investor from its March 2025\nconvertible note financing (the “March 2025 Financing” and each such\ninvestor, a “March Investor”). With the support of all participating\ninvestors, the Company continues to make progress in reducing its debt and\nimproving its capital structure.\n\nThis press release features multimedia. View the full release here:\nhttps://www.businesswire.com/news/home/20260901991778/en/\n(https://www.businesswire.com/news/home/20260901991778/en/)\n\nFaraday Future Announced That It has Entered Into Incremental Warrant\nTermination Agreements With Each March 2025 Financing Investor as It Continues\nto Make Progress in Reducing Its Debt and Improving Its Capital Structure\n\nUnder the Termination Agreement, the Company has cancelled all 21,021,369\noutstanding Incremental Warrants issued in the 1st to 3rd closings pursuant to\nthe March 2025 Financing, permanently removing the potential dilution\nassociated with their future exercise. Based on the current $5.00 conversion\nfloor price for outstanding convertible notes issued pursuant to the March\n2025 Financing, the exercise of these Incremental Warrants could have resulted\nin approximately 45% of potential maximum dilution. Along with the amendment\nagreement the Company entered into with each March Investor dated as of August\n20, 2026, which eliminated the Company’s obligation to issue common warrants\nand incremental warrants at future March 2025 Financing closings, all common\nwarrants and Incremental Warrants under March 2025 SPA have now been fully\ncancelled. On a fully diluted basis, the cancellation eliminates approximately\n57.48% of the potential dilution associated with the March 2025 Financing,\nfurther reducing the Company’s dilution overhang and optimizing its capital\nstructure.\n\nFollowing the second quarter, the two optimization actions taken with respect\nto the liabilities arising from the March 2025 Financing are expected to\ndirectly reduce the approximately $5.794 million in fair-value-measured\nliabilities disclosed in the Company's previously reported second-quarter\nfinancial results. This reduction represents a meaningful improvement to the\nCompany's balance sheet and liability profile.\n\n“These Incremental Warrant Termination Agreements represent another concrete\nstep in delivering on our commitment to capital value restoration and\nrepresents our latest action to reduce the Company’s potential dilution,\nreducing debt and optimizing our capital structure,” said Jerry Wang,\nExecutive Chairman of FF.\n\nABOUT FARADAY FUTURE\n\nFounded in 2014, Faraday Future (FF) is a U.S.-based Physical AI ecosystem\ncompany dedicated to reshaping the future of robotics and mobility solutions\nthrough AI innovation and technologies. FF focuses on two major product\nstrategies within the Embodied AI (EAI) robotics business: EAI humanoid and\nbionic robots, and EAI automotive-focused robots. By building a \"Four-Core\nFull-Stack AI\" ecosystem of EAI Brain, Device, Industry Productivity Solutions\nand Developer Platform, and Data Factory, FF aims to create an evolutionary\nflywheel: scaled device delivery, data collection and training, continuous\nevolution of the EAI Brain, stronger product capability, and even larger-scale\ndelivery and deployment. Through this flywheel, FF seeks to maximize its\ncommercial value and lead to the advancement of Physical AI. For more\ninformation, please visit Faraday Future's official website:\nhttps://www.ff.com/\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.ff.com%2F&esheet=54597766&newsitemid=20260901991778&lan=en-US&anchor=https%3A%2F%2Fwww.ff.com%2F&index=1&md5=a8fd5c70e719820f39e7aa43af74624d)\n\nFORWARD LOOKING STATEMENTS\n\nThis press release includes \"forward looking statements\" within the meaning of\nthe safe harbor provisions of the United States Private Securities Litigation\nReform Act of 1995. When used in this press release, the words \"plan to,\"\n\"can,\" \"will,\" \"should,\" \"future,\" \"potential,\" and variations of these words\nor similar expressions (or the negative versions of such words or expressions)\nare intended to identify forward-looking statements. These forward-looking\nstatements, which include statements regarding FF's vehicle business and FF's\nentry into the embodied AI robotics market, involve a number of known and\nunknown risks, uncertainties, assumptions and other important factors, many of\nwhich are outside the Company's control, which could cause actual results or\noutcomes to differ materially from those discussed in the forward-looking\nstatements.\n\nImportant factors, that may affect actual results or outcomes include, among\nothers: the Company's ability to continue as a going concern and improve its\nliquidity and financial position; the Company's ability to pay its outstanding\nobligations, which it currently lacks; the availability of sufficient share\ncapital to meet its current obligations and execute on its strategy; the\nwillingness of convertible debt investors to fund the Company; demand for the\nCompany's robotics products; the ability of B2B preorder companies to locate\ncustomers to purchase our robotics products, on which their nonbinding\npreorders substantially depend; competition in the robotics industry, which\nincludes companies with far superior experience, funding and name recognition;\nthe ability of the Company to build an EAI education ecosystem that serves\nboth the B2C consumer market and the B2B institutional education market; the\nacceptance by teachers and students of the Company's robotics products in the\neducation market; the ability of the Company to expand into additional markets\nfor its robotics products; the Company's reliance on a single OEM for most of\nits robotics products; the Company's reliance on Chinese OEMs for all of its\nrobotics products; the possibility of the federal government banning imports\nof Chinese robotics products; the Company's ability to get the planned\nrobotics products to comply with all applicable U.S. rules and regulations;\nthe ability of the robotics OEM to timely supply robotics to the Company;\ntariff uncertainty for imported products, particularly from China; demand from\nautomobile dealers for robotics products; the Company's ability to homologate\nFX vehicles for sale; the Company's ability to secure the necessary funding to\nexecute on the FX strategy, which is substantial; the Company's ability to\nsecure an occupancy certificate covering all of its Hanford facility; the\nCompany's ability to remediate its material weaknesses in internal control\nover financial reporting and the risks related to the restatement of\npreviously issued consolidated financial statements; the Company's limited\noperating history and the significant barriers to growth it faces; the\nCompany's history of substantial losses and expectation of continued losses;\nthe success of the Company's payroll expense reduction plan; the Company's\nability to execute on its plans to develop and market its vehicles and the\ntiming of these development programs; the Company's estimates of the size of\nthe markets for its vehicles and cost to bring those vehicles to market; the\nrate and degree of market acceptance of the Company's vehicles; the Company's\nability to cover future warranty claims; the success of other competing\nmanufacturers; the performance and security of the Company's vehicles; current\nand potential litigation involving the Company; the Company's ability to\nreceive funds from, satisfy the conditions precedent of and close on the\nvarious financings described elsewhere by the Company; the result of future\nfinancing efforts, the failure of any of which could result in the Company\nseeking protection under the Bankruptcy Code; the Company's indebtedness; the\nCompany's ability to use its \"at-the-market\" program; insurance coverage;\ngeneral economic and market conditions impacting demand for the Company's\nproducts; potential negative impacts of a reverse stock split; potential cost,\nheadcount and salary reduction actions may not be sufficient or may not\nachieve their expected results; circumstances outside of the Company's\ncontrol, such as natural disasters, climate change, health epidemics and\npandemics, terrorist attacks, and civil unrest; risks related to the Company's\noperations in China; the success of the Company's remedial measures taken in\nresponse to the Special Committee findings; the Company's dependence on its\nsuppliers and contract manufacturer; the Company's ability to develop and\nprotect its technologies; the Company's ability to protect against\ncybersecurity risks; and the ability of the Company to attract and retain\nemployees, any adverse developments in existing legal proceedings or the\ninitiation of new legal proceedings, and volatility of the Company's stock\nprice. You should carefully consider the foregoing factors and the other risks\nand uncertainties described in the \"Risk Factors\" section of the Company's\nForm 10-Q for the quarter ended June 30, 2026 filed with the SEC on August 13,\n2026; the quarter ended March 31, 2026, filed with the SEC on May 14, 2026,\nand Form 10-K filed with the SEC on March 31, 2026, and other documents filed\nby the Company from time to time with the SEC.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260901991778/en/\n(https://www.businesswire.com/news/home/20260901991778/en/)\n\nInvestors (English): ir@ff.com \n(mailto:ir@ff.com) \nInvestors (Chinese): cn-ir@ff.com \n(mailto:cn-ir@ff.com) \nMedia: john.schilling@ff.com (mailto:john.schilling@ff.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw69N36a","title":"Faraday Future Announced that It has Entered Into Incremental Warrant Termination Agreements With Each March 2025 Financing Investor as It Continues to Make Progress in Reducing Its Debt and Improving Its Capital Structure","author":"Business Wire","ticker":"FFAI","created":"2026-09-02T00:40:00.180Z","tickers":["FFAI"],"exchange":"NASDAQ","article_body":"Faraday Future Announced that It has Entered Into Incremental Warrant\nTermination Agreements With Each March 2025 Financing Investor as It Continues\nto Make Progress in Reducing Its Debt and Improving Its Capital Structure\n\n\n * Under the Termination Agreement, the Company has cancelled all 21,021,369\noutstanding Incremental Warrants issued in the 1st to 3rd closings pursuant to\nits March 2025 Financing, permanently removing the potential dilution\nassociated with their future exercise.\n\nFaraday Future Intelligent Electric Inc. (NASDAQ: FFAI) (“Faraday Future”,\n“FF” or the “Company”), a California-based global Embodied AI (EAI)\necosystem company, today announced that it has entered into Incremental\nWarrant Termination Agreements with each investor from its March 2025\nconvertible note financing (the “March 2025 Financing” and each such\ninvestor, a “March Investor”). With the support of all participating\ninvestors, the Company continues to make progress in reducing its debt and\nimproving its capital structure.\n\nThis press release features multimedia. View the full release here:\nhttps://www.businesswire.com/news/home/20260901991778/en/\n(https://www.businesswire.com/news/home/20260901991778/en/)\n\nFaraday Future Announced That It has Entered Into Incremental Warrant\nTermination Agreements With Each March 2025 Financing Investor as It Continues\nto Make Progress in Reducing Its Debt and Improving Its Capital Structure\n\nUnder the Termination Agreement, the Company has cancelled all 21,021,369\noutstanding Incremental Warrants issued in the 1st to 3rd closings pursuant to\nthe March 2025 Financing, permanently removing the potential dilution\nassociated with their future exercise. Based on the current $5.00 conversion\nfloor price for outstanding convertible notes issued pursuant to the March\n2025 Financing, the exercise of these Incremental Warrants could have resulted\nin approximately 45% of potential maximum dilution. Along with the amendment\nagreement the Company entered into with each March Investor dated as of August\n20, 2026, which eliminated the Company’s obligation to issue common warrants\nand incremental warrants at future March 2025 Financing closings, all common\nwarrants and Incremental Warrants under March 2025 SPA have now been fully\ncancelled. On a fully diluted basis, the cancellation eliminates approximately\n57.48% of the potential dilution associated with the March 2025 Financing,\nfurther reducing the Company’s dilution overhang and optimizing its capital\nstructure.\n\nFollowing the second quarter, the two optimization actions taken with respect\nto the liabilities arising from the March 2025 Financing are expected to\ndirectly reduce the approximately $5.794 million in fair-value-measured\nliabilities disclosed in the Company's previously reported second-quarter\nfinancial results. This reduction represents a meaningful improvement to the\nCompany's balance sheet and liability profile.\n\n“These Incremental Warrant Termination Agreements represent another concrete\nstep in delivering on our commitment to capital value restoration and\nrepresents our latest action to reduce the Company’s potential dilution,\nreducing debt and optimizing our capital structure,” said Jerry Wang,\nExecutive Chairman of FF.\n\nABOUT FARADAY FUTURE\n\nFounded in 2014, Faraday Future (FF) is a U.S.-based Physical AI ecosystem\ncompany dedicated to reshaping the future of robotics and mobility solutions\nthrough AI innovation and technologies. FF focuses on two major product\nstrategies within the Embodied AI (EAI) robotics business: EAI humanoid and\nbionic robots, and EAI automotive-focused robots. By building a \"Four-Core\nFull-Stack AI\" ecosystem of EAI Brain, Device, Industry Productivity Solutions\nand Developer Platform, and Data Factory, FF aims to create an evolutionary\nflywheel: scaled device delivery, data collection and training, continuous\nevolution of the EAI Brain, stronger product capability, and even larger-scale\ndelivery and deployment. Through this flywheel, FF seeks to maximize its\ncommercial value and lead to the advancement of Physical AI. For more\ninformation, please visit Faraday Future's official website:\nhttps://www.ff.com/\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.ff.com%2F&esheet=54597766&newsitemid=20260901991778&lan=en-US&anchor=https%3A%2F%2Fwww.ff.com%2F&index=1&md5=a8fd5c70e719820f39e7aa43af74624d)\n\nFORWARD LOOKING STATEMENTS\n\nThis press release includes \"forward looking statements\" within the meaning of\nthe safe harbor provisions of the United States Private Securities Litigation\nReform Act of 1995. When used in this press release, the words \"plan to,\"\n\"can,\" \"will,\" \"should,\" \"future,\" \"potential,\" and variations of these words\nor similar expressions (or the negative versions of such words or expressions)\nare intended to identify forward-looking statements. These forward-looking\nstatements, which include statements regarding FF's vehicle business and FF's\nentry into the embodied AI robotics market, involve a number of known and\nunknown risks, uncertainties, assumptions and other important factors, many of\nwhich are outside the Company's control, which could cause actual results or\noutcomes to differ materially from those discussed in the forward-looking\nstatements.\n\nImportant factors, that may affect actual results or outcomes include, among\nothers: the Company's ability to continue as a going concern and improve its\nliquidity and financial position; the Company's ability to pay its outstanding\nobligations, which it currently lacks; the availability of sufficient share\ncapital to meet its current obligations and execute on its strategy; the\nwillingness of convertible debt investors to fund the Company; demand for the\nCompany's robotics products; the ability of B2B preorder companies to locate\ncustomers to purchase our robotics products, on which their nonbinding\npreorders substantially depend; competition in the robotics industry, which\nincludes companies with far superior experience, funding and name recognition;\nthe ability of the Company to build an EAI education ecosystem that serves\nboth the B2C consumer market and the B2B institutional education market; the\nacceptance by teachers and students of the Company's robotics products in the\neducation market; the ability of the Company to expand into additional markets\nfor its robotics products; the Company's reliance on a single OEM for most of\nits robotics products; the Company's reliance on Chinese OEMs for all of its\nrobotics products; the possibility of the federal government banning imports\nof Chinese robotics products; the Company's ability to get the planned\nrobotics products to comply with all applicable U.S. rules and regulations;\nthe ability of the robotics OEM to timely supply robotics to the Company;\ntariff uncertainty for imported products, particularly from China; demand from\nautomobile dealers for robotics products; the Company's ability to homologate\nFX vehicles for sale; the Company's ability to secure the necessary funding to\nexecute on the FX strategy, which is substantial; the Company's ability to\nsecure an occupancy certificate covering all of its Hanford facility; the\nCompany's ability to remediate its material weaknesses in internal control\nover financial reporting and the risks related to the restatement of\npreviously issued consolidated financial statements; the Company's limited\noperating history and the significant barriers to growth it faces; the\nCompany's history of substantial losses and expectation of continued losses;\nthe success of the Company's payroll expense reduction plan; the Company's\nability to execute on its plans to develop and market its vehicles and the\ntiming of these development programs; the Company's estimates of the size of\nthe markets for its vehicles and cost to bring those vehicles to market; the\nrate and degree of market acceptance of the Company's vehicles; the Company's\nability to cover future warranty claims; the success of other competing\nmanufacturers; the performance and security of the Company's vehicles; current\nand potential litigation involving the Company; the Company's ability to\nreceive funds from, satisfy the conditions precedent of and close on the\nvarious financings described elsewhere by the Company; the result of future\nfinancing efforts, the failure of any of which could result in the Company\nseeking protection under the Bankruptcy Code; the Company's indebtedness; the\nCompany's ability to use its \"at-the-market\" program; insurance coverage;\ngeneral economic and market conditions impacting demand for the Company's\nproducts; potential negative impacts of a reverse stock split; potential cost,\nheadcount and salary reduction actions may not be sufficient or may not\nachieve their expected results; circumstances outside of the Company's\ncontrol, such as natural disasters, climate change, health epidemics and\npandemics, terrorist attacks, and civil unrest; risks related to the Company's\noperations in China; the success of the Company's remedial measures taken in\nresponse to the Special Committee findings; the Company's dependence on its\nsuppliers and contract manufacturer; the Company's ability to develop and\nprotect its technologies; the Company's ability to protect against\ncybersecurity risks; and the ability of the Company to attract and retain\nemployees, any adverse developments in existing legal proceedings or the\ninitiation of new legal proceedings, and volatility of the Company's stock\nprice. You should carefully consider the foregoing factors and the other risks\nand uncertainties described in the \"Risk Factors\" section of the Company's\nForm 10-Q for the quarter ended June 30, 2026 filed with the SEC on August 13,\n2026; the quarter ended March 31, 2026, filed with the SEC on May 14, 2026,\nand Form 10-K filed with the SEC on March 31, 2026, and other documents filed\nby the Company from time to time with the SEC.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260901991778/en/\n(https://www.businesswire.com/news/home/20260901991778/en/)\n\nInvestors (English): ir@ff.com \n(mailto:ir@ff.com) \nInvestors (Chinese): cn-ir@ff.com \n(mailto:cn-ir@ff.com) \nMedia: john.schilling@ff.com (mailto:john.schilling@ff.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-09-02T00:40:00.219228901Z","server_sent_at_ms":1788309600219},"received_at":"2026-09-02T00:40:00.307Z","source_url":"https://www.businesswire.com/news/home/20260901991778/en/"},"analysis":{"id":"122190","press_release_id":"133297","analysis_json":{"industry":{"label":"Automobiles","sector":"Consumer Discretionary"},"redFlags":[],"eventType":"restructuring","narrative":"Faraday Future entered into Incremental Warrant Termination Agreements with investors from its March 2025 financing, cancelling all 21,021,369 outstanding warrants.\n\nThe move eliminates approximately 57.48% of the potential dilution associated with that financing round and is expected to reduce liabilities by about $5.794 million.\n\nCombined with a prior amendment, the company has now fully cancelled common warrants and incremental warrants under the March 2025 SPA, significantly optimizing its capital structure.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"FFAI eliminates majority of dilution overhang from March financing, cutting $5.8M in liabilities."},"keyFigures":{"customDimensions":{"warrants_cancelled":21021369,"conversion_floor_price":"$5.00","liability_reduction_usd":5794000,"dilution_removed_percent":"57.48%"}},"quotedText":"These Incremental Warrant Termination Agreements represent another concrete step in delivering on our commitment to capital value restoration and represents our latest action to reduce the Company’s potential dilution, reducing debt and optimizing our capital structure","namedEntities":{"people":[{"name":"Jerry Wang","role":"Executive Chairman"}],"products":["FX vehicles"],"companies":[{"name":"Faraday Future Intelligent Electric Inc.","ticker":"FFAI"}],"dollarAmounts":[{"amount":"$5.00","context":"conversion floor price for outstanding convertible notes"},{"amount":"$5.794 million","context":"reduction in fair-value-measured liabilities"}]},"materialImpact":{"score":3,"reasoning":"Cancellation of 21,021,369 warrants eliminates approximately 57.48% of the potential dilution from the March 2025 financing and reduces liabilities by roughly $5.8 million, a material balance sheet improvement for the company."},"tickerRelevance":{"others":[],"primary":"FFAI"},"globalImportance":15,"audienceRelevance":40,"eventTypeSecondary":[],"importanceComponents":{"tickerTier":"retail-favorite-micro-cap","eventGravity":"capital-structure-optimization","sectorWeight":"ev-automotive"}},"event_type":"restructuring","event_type_secondary":null,"sentiment":"bullish","material_impact_score":3,"narrative":"Faraday Future entered into Incremental Warrant Termination Agreements with investors from its March 2025 financing, cancelling all 21,021,369 outstanding warrants.\n\nThe move eliminates approximately 57.48% of the potential dilution associated with that financing round and is expected to reduce liabilities by about $5.794 million.\n\nCombined with a prior amendment, the company has now fully cancelled common warrants and incremental warrants under the March 2025 SPA, significantly optimizing its capital structure.","key_figures":{"customDimensions":{"warrants_cancelled":21021369,"conversion_floor_price":"$5.00","liability_reduction_usd":5794000,"dilution_removed_percent":"57.48%"}},"named_entities":{"people":[{"name":"Jerry Wang","role":"Executive Chairman"}],"products":["FX vehicles"],"companies":[{"name":"Faraday Future Intelligent Electric Inc.","ticker":"FFAI"}],"dollarAmounts":[{"amount":"$5.00","context":"conversion floor price for outstanding convertible notes"},{"amount":"$5.794 million","context":"reduction in fair-value-measured liabilities"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-09-02T00:41:58.029Z","global_importance":15,"audience_relevance":40,"importance_components":{"tickerTier":"retail-favorite-micro-cap","eventGravity":"capital-structure-optimization","sectorWeight":"ev-automotive"}},"durationMs":117707,"modelName":"glm-4.7"}}