Faraday Future Launches $30M Crypto Treasury and Tokenized Vehicle Platform

Faraday Future, a struggling electric vehicle startup, has announced an ambitious plan to integrate cryptocurrency into its core strategy, including the creation of a crypto treasury and the development of a tokenized vehicle sales platform [1]. The company, which has faced significant production delays and financial challenges, aims to use the initiative to raise capital and generate returns through staking yields, which could fund further product development and asset growth [1].

The plan includes a “C10 (Crypto 10) Treasury,” where the firm will initially allocate $30 million in cryptocurrency, with the potential to grow to tens of billions in the future [1]. Faraday Future also announced the launch of a “C10 Index,” a market-cap-weighted basket of the top 10 cryptocurrencies, excluding stablecoins, and is exploring the creation of an exchange-traded fund (ETF) to track the index [1]. The company plans to allocate between $500 million and $1 billion to the crypto purchases, starting with the initial $30 million commitment [1].

In addition to the treasury and index, Faraday Future is developing an “EAI Vehicle Chain,” which will use tokenized assets and blockchain-based deposits for vehicle sales. EAI, or Embodied AI, refers to artificial intelligence physically integrated into real-world objects like cars [1]. This initiative is part of a broader effort to explore digital assets as a funding source and to position the company in the emerging Web3 landscape.

The move has received public support, including from California State Treasurer Fiona Ma, who praised the plan for its potential to stimulate economic growth and attract investment [1]. However, Faraday Future has faced regulatory scrutiny in the past, including a Wells notice from the U.S. Securities and Exchange Commission related to alleged misstatements in its 2021 SPAC merger [1].

The company’s share price has been volatile, dropping 7.6% on Friday to $2.77 [1]. Despite the recent decline, the stock has gained 75% over the past six months, reflecting a modest year-to-date increase of 14% [1].

This strategy represents a significant pivot for Faraday Future, which has struggled to deliver on its product roadmap and has only produced 16 vehicles as of early 2025 [1]. The company has shifted focus to rebadging Chinese-made electric vans and is now seeking to leverage the growing interest in digital assets to attract new funding and investors.

The crypto strategy reflects a broader trend among publicly listed companies seeking exposure to digital assets, as Wall Street looks for ways to capitalize on the market’s potential [1]. However, the high volatility and regulatory uncertainty associated with cryptocurrencies present significant risks, particularly for a company with a weak financial history and limited production capabilities [1].

Faraday Future’s approach also aligns with the increasing tokenization of physical assets and the integration of blockchain technology in the automotive industry [1]. The company has indicated that it is in early discussions with both institutional and retail investors, though it has not provided specific fundraising targets [1].

Sources:

[1] https://cointelegraph.com/news/ev-startup-faraday-future-plans-multibillion-dollar-crypto-strategy

[2] https://www.reuters.com/technology/faraday-future-eyes-crypto-funding-as-ev-market-competes-for-capital-2025-08/