Faraday Future Sells Robotics Unit for Shares Based on $200 Million
Key Facts
Faraday Future completed the sale of its robotics business to FFR on October 23, 2026, and announced the closing on October 26, according to its filing with the U.S. Securities and Exchange Commission. The consideration formula set a base value of $200 million, adjusted for the percentage of outstanding FF Robotics stock options, and was paid in FFR shares. The robotics business has thus moved to the company that will continue to operate it and trade on Nasdaq under the ticker FFR, while Faraday Future will continue to trade under the ticker FFAI. The company said its focus after transferring the unit would be operating robotaxi and AI mobility-sharing services, alongside serving as a holding company investing in physical AI. FFR was controlled by Faraday Future before the closing, making the deal a related-party transaction.
FFR issued the seller 1,315,313 common shares and 65,475 non-voting convertible preferred shares. The shares total 66,790,313 common shares on an as-converted basis, according to the filing. The number was calculated by dividing the consideration by $2.246 per share. The boards of both companies approved the deal following recommendations from two independent special committees, according to the filing. FFR’s committee also received a fairness opinion from its financial adviser. These approvals are part of the deal’s governance arrangements, given that FFR was controlled by Faraday Future before the transaction closed.
FFR forecast that robotics sales and shipments would exceed 300 units in October 2026, with cumulative shipments surpassing 1,100 units by month-end. The company said October would mark a monthly record, with a positive gross margin per unit continuing. FFR also issued full-year guidance for the first time, forecasting sales and shipments of about 2,000 robots in 2026. The filing said the annual forecast includes a positive gross margin per unit. These figures put shipment volumes and the stated margin at the center of scrutiny of the robotics business’s performance after its transfer to FFR.
On management, FFR appointed Yuting Jia as chief executive, Jerry Wang as chairman of the board, and Chen Xi as lead independent director. The company said Jia and Wang would also continue in their positions at Faraday Future. The arrangement reflects continued shared leadership between the two companies after the robotics business was separated. During the transition, Faraday Future will continue providing services to FF Robotics under a transition services agreement effective October 1, 2026. The filing sets out the continuation of services after closing as part of the operating arrangements between the parties.
For two years after closing, the sellers also agreed not to engage in activities that compete with the robotics business or solicit its employees and customers. The undertaking excludes electric vehicle activities that do not involve robotics. FFR continues to trade on Nasdaq under the ticker FFR, while Faraday Future remains listed under the ticker FFAI. FFAI shares closed at $0.6251 on October 23, 2026, according to EL7 data. The Federal Open Market Committee is scheduled to meet on October 27 and 28, with a press conference on October 28, according to the Federal Reserve calendar.
The issuance of the consideration shares remains subject to FFR shareholder approval. The agreement requires the company to file a proxy statement and call a special shareholder meeting as soon as practicable after closing to seek approval. The step follows the completion of the robotics business transfer, under the terms of the definitive agreement. The filing sets out a process for completing shareholder approval of the share issuance. FFR’s guidance for October and full-year 2026 shipments remains a stated operating indicator pending completion of this process.