Faraday Future shifts focus from EVs to humanoid robots amid struggles

With its ambitious electric vehicle ambitions falling short, Faraday Future is now venturing into the world of humanoid robotics. The company, based in El Segundo, aims to leverage its advanced technology and infrastructure to gain a foothold in the competitive robotics industry.

Despite the pivot, doubts linger about the effectiveness of Faraday’s new focus. While their robots can perform entertaining dances, such as moving to Dua Lipa tunes, the company’s stock has seen a dramatic decline of over 99% from its 2021 highs, reflecting challenges in selling its luxury electric vehicles priced at $300,000.

At a recent showcase, Faraday Future demonstrated its dancing robots at their headquarters. These AI-driven humanoids, which will be assembled in California, are intended for diverse roles such as education, household assistance, and warehouse tasks, according to Chris Chen, the company’s co-chief executive of robotics. “The robot has to be useful or helpful to people,” Chen emphasized, noting the company’s vision of establishing a comprehensive physical AI infrastructure.

The transition to robotics comes as Faraday Future’s electric vehicle business struggles. From 2023 to 2025, only 16 units of the FF 91 model were sold. Analysts remain skeptical about the prospects of the FF 91 2.0, currently available for preorder at a $300,000 price point. The company’s stock, which once soared on EV aspirations in 2021, has since plummeted, recently trading below $2. To maintain its Nasdaq listing, a reverse stock split was executed in July.

Despite the pivot to robotics, financial challenges persist. Faraday Future reported a $39 million net loss in its latest quarterly earnings, attributed to insufficient sales of both EVs and robots. “It comes as no surprise that they have decided to chase the next shiny object of robotics just as Tesla and so many Chinese companies have done,” remarked Sam Abuelsamid, a mobility analyst at Telemetry. “I really don’t see any of these being particularly useful in education, and the home market is also likely to be minimal.”

Faraday Future is keenly aware of the shifting market dynamics. While its luxury EVs were not intended for mass adoption, the company is exploring a more accessible electric van, potentially arriving as early as next year. Founded in 2014 with the backing of a Chinese billionaire, Faraday Future initially positioned itself in Gardena, California, aiming to rival Tesla with a team of former Tesla employees.

The company has since relocated its headquarters to El Segundo and invested nearly $4 billion in a 1.1 million square foot factory in Hanford, California, which will now also produce robots with imported parts from China. Faraday Future offers five robotic models, including the high-end All-New Futurist starting at $89,900 and the Master, a compact humanoid, priced at $37,990. The FX Navi, a four-legged educational robot, is available for $1,990.

With a strategic focus on robotics, Faraday Future aims to distinguish itself from competitors like Agility Robotics, Figure AI, and Tesla, which is developing its Optimus robot. The company intends to capitalize on recent policy changes that restrict Chinese imports, accelerating its “Built in USA” initiative. Faraday Future claims a competitive advantage with ready-to-deliver bots and has sold around 400 units, with plans to deliver 2,000 this year.

While the company aligns its strategy with emerging trends in AI and robotics, it recognizes potential concerns about labor market impacts. Faraday Future asserts its robots are designed to enhance, not replace, human labor. Chen stated, “It’s about robots improving human work efficiency and creating new job opportunities.”