Faraday Future Announces Executive Share Purchase Initiative to Strengthen Long-Term Value, Act Against Potential Illegal Market Manipulation, and Further Align Interests with Stockholders

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Key Terms

common stock financial

Common stock represents ownership shares in a company, giving investors a stake in its success and a say in important decisions through voting rights. It is the most common type of stock traded on markets and can provide income through dividends, as well as potential for value growth. For investors, holding common stock means sharing in the company’s profits and risks.

deferred compensation financial

Deferred compensation is pay that employees or executives have earned now but will receive at a later date, such as delayed bonuses, retirement benefits, or stock grants. It matters to investors because it creates future obligations and shapes incentives—like a promise to pay later that can affect a company’s reported profits, cash needs and potential stock dilution—so it helps signal how a business manages costs and retains key people.

short selling financial

An investing strategy where someone borrows shares and sells them now, planning to buy them back later at a lower price to return to the lender, pocketing the difference; if the price rises instead, the borrower loses money. Think of it like borrowing a book to sell today and hoping you can repurchase it cheaper later. Short selling matters because it lets investors bet against overvalued stocks, can add market liquidity and price discovery, but it also increases volatility and carries the risk of large or unlimited losses.

market manipulation regulatory

Market manipulation is when individuals or groups deliberately distort the price or supply of a security by using deceptive or artificial tactics — for example spreading false information, placing fake orders, or coordinating trades to create a false appearance of demand. It matters to investors because it can make prices unreliable, hide real risk or value, and cause sudden losses when the manipulation stops, much like someone rigging an auction to make a bid look more valuable than it really is.

securities laws regulatory

Securities laws are the rules and enforcement systems that govern the buying, selling and disclosure of stocks, bonds and other investment products; think of them as the traffic laws for financial markets that set what must be disclosed, forbid fraud and require fair dealing. They matter to investors because they help ensure companies provide accurate information, reduce the risk of deception or insider advantage, and make it easier to compare investments and seek remedies if something goes wrong.

u.s. securities and exchange commission regulatory

The U.S. Securities and Exchange Commission is a government agency responsible for overseeing the stock market and protecting investors. It sets rules to ensure that companies share truthful information and that trading is fair, helping to maintain trust in the financial system. This oversight is important because it helps prevent fraud and ensures that investors can make informed decisions.

03/17/2026 - 08:45 PM

Subject to Board approval, compliance with applicable securities laws and the Company’s trading policies, the Company intends to purchase shares of its common stock in an amount approximately equal to the total value of executive and employee deferred compensation for the March through May period, which is about $500,000 on an after-tax basis.
Repurchased shares would be transferred to participating executives and other employees as a settlement of the deferred compensation, increasing their equity ownership in the Company.
This initiative reinforces a commitment to the Company’s strategic execution, as well as demonstrates the Company’s action against potential illegal market manipulation and short selling.

LOS ANGELES--(BUSINESS WIRE)-- Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI) (“Faraday Future”, “FF” or the “Company”), a California-based global Embodied AI (EAI) ecosystem company, today announced a new initiative under which executives and other employees will increase their ownership in the Company through a structured share acquisition program in exchange for deferring part of their salaries.

This initiative is designed to align management and employee interests more closely with stockholders and reinforce commitment to the Company’s strategic execution during the current market environment.

As part of this program, certain executives and employees will defer a portion of their base compensation for a three-month period from March 1, 2026, through May 31, 2026. The deferred amounts are intended to be used as a reference for the Company to repurchase shares of its common stock.

Subject to Board approval, compliance with applicable securities laws and the Company’s trading policies, FF intends to repurchase shares in an amount approximately equal to the total estimated after-tax deferred compensation for the period (estimated to be approximately $500,000 after tax). These shares are expected to be subsequently transferred to participating executives and other employees, increasing their equity ownership in the Company.

The Company believes this initiative sends a clear message that, in the face of capital markets volatility and potential illegal short selling and market manipulation, FF will not be distracted, but instead will respond in a proactive, prudent, and resolute manner to defend the Company’s value, reinforce market confidence, and demonstrate its determination to prevail in the fight against potential illegal short selling and market manipulation while protecting the shared interests of stockholders and employees. The Company believes this structure represents a proactive and disciplined approach to capital management while enabling insiders to meaningfully increase their stake in FF.

Following such repurchase, the Company currently intends to settle the deferred compensation obligations by transferring the shares of the Company’s common stock to participating executives and other employees, subject to the terms of applicable compensation arrangements.

“I believe this initiative demonstrates that the management and employees at FF are willing to support the Company’s liquidity management and long-term strategic execution through concrete action, reflecting a strong commitment to standing with the Company during a challenging period,” said YT Jia, FF Founder and Global Co-CEO. This initiative follows the Company’s commitment to take action in response to recently identified potential illegal market manipulation and short selling.

The Company also seriously continues to progress with its preparation for a potential submission to the U.S. Securities and Exchange Commission regarding potential illegal market manipulation.

ABOUT FARADAY FUTURE

Faraday Future is a California-based global intelligent Company founded in 2014 and is dedicated to reshaping the future of mobility through vehicle electrification, intelligent technologies, and AI innovation. Its flagship vehicle, the FF 91, began deliveries in 2023 and reflects the brand’s pursuit of ultra-luxury, cutting-edge technology, and high performance. FF’s second brand, FX, targets the high-volume mainstream vehicle market. Its first model, Super One, is positioned as a first-class EAI-MPV, with deliveries planned to begin in 2026. FF recently announced its entry into the Embodied AI Robotics business with sales beginning this year, connecting its future strategy of bringing a new era of EAI vehicles and EAI robotics. For more information, please visit https://www.ff.com/.

FORWARD LOOKING STATEMENTS

This press release includes “forward looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “plan to,” “can,” “will,” “should,” “future,” “potential,” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements, which include statements regarding potential future legal actions against alleged illegal market manipulation or similar improper activities, and FF’s entry into the embodied AI robotics market and robotics deliveries and development, involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, which could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements.

Important factors, that may affect actual results or outcomes include, among others: the Company’s ability to timely make the share purchases, which may be restricted for extended periods due to trading blackouts; and expectations related to the investigation of potential illegal market manipulation, including the Company’s analysis, its ability to take appropriate corrective action, obtain sufficient evidence to support legal actions or any potential investigations by regulators. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of the Company’s Form 10-K filed with the SEC on March 31, 2025, and Form 10-Qs for the quarters ended June 30, 2025 and September 30, 2025 filed with the SEC on May 9, 2025, August 19, 2025 and November 21, 2025, respectively, and other documents filed by the Company from time to time with the SEC.