Amid struggles in its EV business, cash-starved Faraday Future is pivoting to crypto and AI.
Summary
- Faraday Future is pivoting to crypto and embodied AI
- The firm hopes its crypto treasury will attract capital and help it raise cash for its business
- So far, Faraday Future has produced only 16 of its FF 91s vehicles
The struggling EV startup Faraday Future is pivoting to crypto and AI. On Sunday, August 17, EV startup Faraday Future announced the launch of a treasury product, as well as a new focus on embodied AI.
Faraday Future is launching the C10 Treasury product, a weighted basket of the top 10 crypto assets, excluding stablecoins. The fund will allocate 80% of the funds according to the index and actively manage the other 20% for greater returns.
The fund is aiming for $500 million to $1 billion in initial crypto asset purchases, with an initial purchase of $30 million. Moreover, the company hopes to earn an estimated 3% to 5% in staking yields, which it will use to fund stock buybacks and innovation in its core business.
Faraday Future’s business struggles
Faraday Future hopes to leverage crypto and AI to reinvigorate interest in its business. According to the firm, the goal is to combine the short-cycle crypto business with the long-cycle embodied AI for electric vehicles.
“The next decade could be a super long bull cycle for the crypto market,” said Ian Calderon, FF Co-Creation Officer. “FF is building a dual-engine circular growth system — combining the long-cycle, high-value EAI EV ecosystem with the short-cycle, high-velocity Crypto ecosystem. These two flywheels will empower each other, redefining what’s possible in mobility and financial innovation.”
Once dubbed a potential Tesla competitor, Faraday Future’s business has been struggling. By January 2025, the company had only produced 16 of its flagship FF 91 vehicles. Most were given to employees and advocates.