Faraday Future Intelligent Electric Inc. (Nasdaq: FFAI) ("FF", "Faraday Future", or the "Company"), a California-based global Embodied AI (EAI) ecosystem company,  announced it has entered into a Securities Purchase Agreement (the “Agreement”) with investors to issue convertible promissory notes in an aggregate principal amount of $25 million USD. The Company expects proceeds from the financing to accelerate the implementation of FF's EAI strategy to maintain FF's first-mover advantage as the first U.S. company to deliver both humanoid and bionic robots.

Pursuant to the Agreement, the investors purchased from the Company convertible promissory notes in an aggregate principal amount of $25 million USD. The shares of common stock underlying the convertible promissory notes issued in the financing are currently unregistered, subject to trading restrictions, and not immediately tradable. Of this amount, $12.5 million will be remitted directly to the Company's operating account. The remaining $12.5 million will be deposited, pursuant to controlled account agreements with each investor, into control accounts under the control of such investor and will be released to the Company upon satisfaction of certain conditions. For more information on the key terms of this financing, please refer to the Company's Form 8-K to be filed with the U.S. Securities and Exchange Commission (SEC) on or about May 15, 2026.

Combined with the $45 million financing announced in April, the Company has secured a total of $70 million in financing over the past two months, enough to fully support the Phase 1 (by end of 2026) objective of FF EAI robotics strategy. Driven by rising demand across the FF’s four primary product lines and key application scenarios, including education, security inspection, reception and guided tours, performance, and university research, as well as the upcoming new products, the Company raised the full-year shipment target to 1,500 units.

Evolving into a Physical AI company with the “AI First” philosophy, FF is focusing on two product engines: Embodied AI (EAI) humanoid and bionic robots, and EAI automotive robots. By building a “Three-in-One ecosystem” of “Device, Data, and Brain & Open-Source and Open Developer Platform,” the Company aims to create an evolutionary flywheel, with the goal of maximizing commercial value.

The significance of this financing is not the amount itself, but that — for the first time in years with near-term runway pressure materially eased — the Company believes it can shift financing decisions from liquidity-driven to capital-structure-governance-driven. With improved strategy and fundamentals, FF expects to gradually move its EAI Vehicle business away from high-cost short-term funding approach, toward a business-phase fit financing mix of operating cash flow, industry partnerships, and long-term capital to accelerate returns for its stockholders.