Faraday Future Intelligent Electric Inc. (NASDAQ:FFAI) shares are trading higher after it signed a definitive agreement to sell its full robotics ecosystem business to FF EAI Robotics Ecosystem Inc. (NASDAQ:FFR).
The transaction values the robotics business at about $200 million and FFR at $60 million, fully diluted. The deal is expected to close by the end of October.
Deal Terms and Ownership Structure
FFR will issue shares to FFAI at $2.246 each, a premium of about 50% over its Oct. 12 closing price of $1.50 and 55% over its Oct. 13 closing price of $1.45.
The deal was approved by independent special committees at both companies and supported by a fairness opinion. FFR has also secured up to $10 million in PIPE financing, priced at market without discounts or warrants.
After closing, FFAI is expected to own 65.7% of FFR, while management and employees will hold 18.2%, PIPE investors 5.5% and other shareholders 10.7%.
FFAI’s newly issued shares will be locked up for 18 months, while PIPE investors will be unable to sell their shares for six months or until the resale registration statement becomes effective. FFR’s estimated public float will be approximately 13 million shares, representing 10.7% of the company.
FFAI will remain FFR’s controlling shareholder and may consolidate its financial statements, subject to applicable conditions.
FFR Targets Growth in Humanoid Robotics
FFR aims to become the first U.S.-listed pure-play humanoid and bionic EAI robotics company, targeting a top-three industry position within five years.
FFAI said its robotics business has launched 24 products across three robot forms and begun deliveries after completing Phase One of its "Built in USA" Acceleration Program.
By the end of September, cumulative EAI Device sales and shipments had reached 817 units. Second-quarter average gross margin exceeded 30%, while cumulative revenue stood at approximately $1.52 million.
Robotics Revenue and Margin Outlook
FFAI projects robotics revenue of $7 million in 2026 at a 10% gross margin and $45 million in 2027 at a 30.5% margin.
From 2026 through 2030, the company forecasts cumulative revenue of approximately $1.98 billion, with gross margin reaching 54% in 2030 and cumulative EAI Device sales exceeding 130,000 units.
FFAI Refocuses on Robotaxi and AI Technology
FFAI also plans to shift away from EAI vehicle manufacturing toward a Robotaxi Sharing Network and AI VisiCabin technology, partnering with RoboShare on a lower-asset shared-mobility model.
The company expects the separate listing to improve strategic focus, accelerate commercialization, enhance capital efficiency and financial transparency, and unlock shareholder value.
FFAI Earnings Preview and Analyst Rating
Looking further out, the next major catalyst for the stock arrives with the Nov. 12, 2026, (estimated) earnings report.
- EPS Estimate: $-9.68 (Up from $-232.50 YoY)
- Revenue Estimate: $3.92 million (Up from $37,000 YoY)
Analyst Consensus & Recent Actions: The stock carries a Buy rating, with an average price forecast not provided. Recent analyst moves include:
- Litchfield Hills: Initiated with Buy (Target $750.00) (Nov. 20, 2025)
FFAI Stock Price Action in Wednesday’s Session
FFAI Stock Price Activity: Faraday Future shares are trading higher by 2.70% at $1.14 at the time of publication on Wednesday, according to Benzinga Pro data.
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