Faraday Transfers Robotics Business to FFR at $200 Million Valuation
Key Facts
Faraday Future closed the sale of its robotics business to FFR, the Nasdaq-listed company, on October 23, 2026, in a deal that transfers the business to an entity managed by the buyer, according to Faraday’s filing with the U.S. Securities and Exchange Commission. The two companies had signed a definitive agreement on October 12 to transfer the robotics assets and business in exchange for shares, after announcing a valuation of about $200 million for the business. The deal separates the robotics business from Faraday’s operations, while both companies continue to trade on Nasdaq under the symbols FFR and FFAI. But the ownership structure disclosure adds an important detail to the description of the deal as a transfer to a listed company: Faraday said FF Global Partners holds more than 50% of the voting power to elect FFR board members. The board has 7 members, according to the filing, making the distribution of voting rights a key part of the picture of control after closing.
The parties valued the robotics business at about $200 million, while valuing FFR at about $60 million on a fully diluted basis, according to the company’s SEC filing. The two figures reflect the valuation basis on which the deal was announced, while the agreement provided for FFR to issue shares to Faraday at $2.246 per share. FFR’s filing said that price represented a premium of about 50% to the stock’s $1.50 close on the day the agreement was signed, October 12, and about 55% to the $1.45 close on October 13. However, EL7 data records FFR’s close at $1.13 on October 23, the day the deal was completed, while Faraday shares closed at $0.6251. These are daily closing prices reported by EL7 data, not figures from the company’s filing; the share issuance price in the agreement and the market closing price are different figures, each with its own basis.
At closing, FFR issued 1,317,949 common shares and 65,427 convertible, non-voting preferred shares to the selling company, according to Faraday’s filing. Conversion of the preferred shares or activation of their associated voting rights remains subject to FFR shareholder approval of the share issuance. The agreement filing had said Faraday was expected to own about 65.7% of FFR on a fully diluted basis after conversion, and that the new shares received in the deal were subject to an 18-month sale restriction. This expected stake should be read alongside the subsequent disclosure on voting power, in which Faraday said FF Global Partners holds more than 50% of the voting power to elect directors. The deal structure thus distinguishes between Faraday’s expected economic stake, conversion that was unavailable before shareholder approval, and the voting rights disclosed for the investment group.
The transfer included the robotics business, its assets, intellectual property, data, contracts, employees and obligations, following an internal restructuring before closing, according to Faraday’s filing. The sellers also agreed not to compete with the robotics business or solicit its employees and customers for two years after closing, with specified exceptions for Faraday’s electric-vehicle business. The arrangement covers the transferred business and its operating relationships, while the exceptions related to the electric-vehicle business remain part of the contractual undertaking’s limits. FFR’s chief executive said the company views the deal as a milestone in creating a dedicated public robotics company, and that the platform provides a basis for accelerating commercialization and expanding the use of intelligent robots in real-world applications. This is management’s description of the deal’s aims; the transfer and ownership disclosures define what actually moved and what remained subject to approvals or restrictions.
Operationally, FFR management expected robotics sales and shipments to exceed 300 units in October 2026, setting a monthly record, and to bring cumulative shipments to more than 1,100 units. The company provided annual guidance for the first time for 2026, forecasting sales and shipments of about 2,000 robots during the fiscal year. Management linked these forecasts to continued positive gross margin per unit, according to the statement published through Nasdaq. The figures outline an announced operating trajectory for the entity following the transfer of the business to it, but remain management forecasts rather than achieved results. In the company’s statement, the October and annual forecasts were presented as indicators of expected shipment volume, while the filing did not provide actual results for these periods.
FFR announced the appointment of YT Jia as chief executive officer, Jerry Wang as chairman of the board, and Chen Xi as lead independent director. The appointments are part of the company’s management arrangements following the transfer of the robotics business to it, alongside a board of 7 members, as stated in Faraday’s filing. According to the investor presentation attached to Faraday’s filing, the company expects the first robot to roll off the U.S. production line in February 2027. That date remains a stated future target, while the deal disclosures specify the transfer of assets, employees and obligations upon its completion in October. The announced milestones to watch are therefore the execution of shipment forecasts in October and during 2026, followed by reaching the target date for the first robot from the U.S. production line in February 2027.