Weishaar bought EUR161,528 in shares on Sept. 4

Weishaar bought EUR161,528 in shares on Sept. 4

Faraday Future (NASDAQ: FFAI) has announced that Founder and Global Co-CEO YT Jia has made his second stock purchase of approximately $180,000 under his Rule 10b5-1 trading plan. This purchase is part of Jia's planned total investment of $560,000, representing the after-tax portion of his $1.2 million signing bonus [1].

The company is preparing for a Special Meeting of Stockholders on September 19, 2025, seeking approval for several key proposals, including increasing authorized shares, company name change, and amending the 2021 Stock Incentive Plan. The amendment would add 9.5 million shares to the equity incentive reserve, bringing the total to approximately 7% of current authorized shares [1].

Founder/Co-CEO buys $180K in stock amid push for shareholder approval on share increase and equity compensation expansion. Faraday Future's Founder and Global Co-CEO YT Jia has purchased $180,000 of company stock under his 10b5-1 trading plan, representing his second purchase as part of a planned $560,000 total investment. This amount equals the after-tax portion of his $1.2 million signing bonus received upon appointment as Global Co-CEO. While insider purchases typically signal confidence, the relatively modest investment size provides limited conviction signal [1].

More significant is Faraday's upcoming September 19th Special Meeting where management is pursuing several critical authorizations that suggest potential capital structure challenges. The company is seeking shareholder approval to increase authorized shares, issue common stock to convertible noteholders and warrant holders, and substantially expand its equity compensation plan [1].

The requested addition of 9.5 million shares to the equity incentive plan would increase the reserved equity compensation pool from just 1.5% of outstanding shares to approximately 7% of current authorized shares. This 467% increase in equity compensation capacity indicates the company may be prioritizing equity over cash compensation, potentially to preserve liquidity [1].

The combined proposals - increasing share authorization, converting notes to equity, and expanding equity compensation - suggest Faraday is pursuing an equity-centric capital strategy. While management positions these measures as supporting "long-term growth," they come with significant potential dilution for existing shareholders. The timing of the Co-CEO's stock purchase appears strategically aligned with soliciting shareholder support for these dilutive measures [1].

Faraday Future is a California-based global shared intelligent electric mobility ecosystem company. Founded in 2014, the Company’s mission is to disrupt the automotive industry by creating a user-centric, technology-first, and smart driving experience. Faraday Future’s flagship model, the FF91, exemplifies its vision for luxury, innovation, and performance. The new FX strategy aims to introduce mass production models equipped with state-of-the-art luxury technology similar to the FF 91, targeting a broader market with middle-to-low price range offerings [1].

References:
[1] https://www.stocktitan.net/news/FFAI/faraday-future-founder-and-co-ceo-yt-jia-makes-second-stock-purchase-8vpfkobfpbmj.html