Faraday Future’s Crypto Treasury Gamble Risks EV Delivery
Faraday Future (FF) and founder Jia Yueting have launched a high-stakes “EAI + Crypto” strategy centered on a $10 billion crypto treasury and the C10 index. The C10 index, tracking the top ten non-stablecoin assets like BTC, ETH, and SOL, underpins FF’s treasury plan. FF aims for 3%–5% annual yields on a $1 billion fund, with profits split equally among vehicle R&D, crypto reinvestment, and share buybacks.
Despite a 400% rally in FF stock, the plan faces major execution risks. FF has yet to secure the first $500 million–$1 billion in capital, and its Q1 revenue was only $300,000 against a $43.8 million loss. An active SEC inquiry into Jia’s past dealings adds regulatory uncertainty. Meanwhile, factory delivery remains stalled: just 30 FF91 vehicles delivered since 2023, generating negligible sales.
FF’s new Faraday X brand claims 10,000 small orders for its Super One MPV, but analysts doubt real conversion. Tokenizing undelivered car orders as RWA for USDT financing recalls past LeEco collapses. If crypto markets dip, FF’s treasury could devalue, triggering creditor runs and deepening losses. Traders should watch for funding milestones, SEC developments, and actual EV deliveries. This crypto treasury gamble may either mask a delivery crisis or accelerate FF’s downfall.
Bearish
Faraday Future’s crypto treasury strategy heightens execution and regulatory risks. The firm lacks committed capital, posts deep losses, and faces an active SEC inquiry. Vehicle deliveries remain negligible, and tokenizing undelivered car orders recalls past LeEco debt traps. A downturn in crypto markets could devalue the treasury, trigger creditor runs, and deepen FF’s financial crisis. Similar high-profile crypto financing gambles have led to rapid collapses when markets turned. Short-term, traders should brace for volatility around funding announcements and SEC updates. Long-term stability hinges on actual EV deliveries and market confidence—both currently uncertain.