Faraday Future (NASDAQ: FFAI) announced on September 18, 2026, that it has signed an amendment to its May 2026 financing agreement with an existing investor, adjusting the terms of convertible notes and related deposit account control agreements. The move is aimed at reducing the company's note debt, lowering potential share dilution, and optimizing its capital structure, according to Chinese automotive outlet D1EV, which cited information from Gasgoo.
Under the revised agreement, Faraday Future will return $5 million in restricted cash that was held in a controlled account. After the return, the outstanding balance under the note, including applicable premium and full interest, will drop from approximately $10.88 million to about $5.88 million. The remaining outstanding notes will be converted into debt without conversion rights, and the company plans to repay the full amount in cash within six months.
Based on a minimum conversion price of $5 per share, the amendment will further reduce potential share dilution by approximately 25.16%. Jerry Wang, executive chairman of Faraday Future, said the revision helps lower potential dilution, optimize the capital structure, and protect shareholder value. He added that the company will continue to advance its commitments, maintain transparent disclosure, and take active steps to support its embodied AI robotics strategy.
Focus on embodied AI robotics
Faraday Future, headquartered in California, describes itself as an embodied AI ecosystem company. It is currently focused on two product strategies: embodied AI humanoid and biomimetic robots, and automotive robots. The company has filed an 8-K form with the U.S. Securities and Exchange Commission detailing the amendment.
The financing revision comes as Faraday Future continues to navigate its capital structure amid ongoing efforts to bring its vehicle and robotics products to market. The company's stock trades on the NASDAQ under the ticker FFAI.
According to D1EV, the amendment is part of a broader effort to reduce debt and improve financial flexibility. The company has not provided a timeline for the cash repayment of the remaining notes, but the six-month plan suggests a near-term resolution.
