Faraday Future shifts to crypto and AI as EV sales stall

Faraday Future, the electric vehicle (EV) startup that once aspired to rival Tesla, is shifting focus toward cryptocurrency and embodied AI amid ongoing production and sales challenges. The company, which has only manufactured 16 of its flagship FF 91 vehicles to date, announced a new initiative on August 17 that includes the launch of a crypto treasury and a strategic pivot into AI development. The move aims to stabilize the firm’s cash flow by leveraging the high-velocity returns of the crypto market while advancing its long-term vision in AI-integrated mobility [1].

The C10 Treasury product, a weighted basket of the top 10 crypto assets excluding stablecoins, will allocate 80% of its investments based on market index weights, while the remaining 20% will be actively managed to enhance returns. The treasury aims to initially raise $500 million to $1 billion, with an initial $30 million already committed to asset purchases. Faraday Future estimates that staking yields from the portfolio could reach 3% to 5%, which the company plans to reinvest in stock buybacks and innovation [2].

In parallel, the firm is developing an "EAI Vehicle Chain" platform that integrates AI and blockchain technology to tokenize vehicle sales. The initiative reflects an effort to create a dual-engine growth model, combining the fast-paced returns of crypto with the long-term value of AI-enhanced EVs. This approach is intended to generate liquidity and attract a broader investor base familiar with decentralized finance (DeFi) and blockchain ecosystems [3].

Despite these strategic changes, the company’s stock has shown signs of weakness. As of July 24, 2025, shares had declined by 4.78%, with analysts forecasting further downward pressure until the firm demonstrates a clear path to profitability in either the EV or crypto sectors [4].

Faraday Future’s pivot to crypto and AI is emblematic of a growing trend among struggling tech firms exploring alternative funding mechanisms. However, the company’s ability to succeed will depend on its capacity to execute on both technological and financial fronts while maintaining credibility with investors and consumers [5].

Source:

[1] title1: Faraday Future pivots to crypto and AI as car sales falter

url1: https://crypto.news/faraday-future-pivots-to-crypto-and-ai-as-car-sales-falter/

[2] title2: Faraday Future Launches $30M Crypto Strategy Amid EV ...

url2: https://www.ainvest.com/news/faraday-future-launches-30m-crypto-strategy-ev-struggles-2508/

[3] title3: Faraday Future Launches $30M Crypto Treasury and ...

url3: https://www.ainvest.com/news/faraday-future-launches-30m-crypto-treasury-tokenized-vehicle-platform-2508/

[4] title4: Faraday Future Intelligent Electric Stock Price Forecast. ...

url4: https://stockinvest.us/stock/FFAIW

[5] title5: Why is the Crypto Market Down Today? Bitcoin and ...

url5: https://m.fastbull.com/news-detail/why-is-the-crypto-market-down-today-bitcoin-news_6100_0_2025_3_8173_3/6100_BNB-USDT