## Faraday Future Embraces Crypto Strategy as EV Production Stalls

The EV startup Faraday Future is making a bold strategic shift. Facing mounting pressure from lagging vehicle sales, the company announced on August 17 a major pivot toward cryptocurrency and artificial intelligence to shore up its cash position.

### The C10 Treasury Initiative

At the center of Faraday Future's new direction is the C10 Treasury product, a diversified crypto asset portfolio excluding stablecoins. The fund targets the top 10 cryptocurrencies by market cap and employs a structured approach: 80% of capital follows an indexed strategy, while the remaining 20% is actively managed to maximize returns.

The treasury strategy is ambitious in scope. Faraday Future aims to accumulate between $500 million and $1 billion in crypto assets, with an initial allocation of $30 million already deployed. The company projects generating 3% to 5% in staking yields from these holdings. These passive income streams are earmarked for two critical areas: repurchasing company stock and funding research initiatives in its core automotive business.

### Why the Pivot to Crypto and AI

This move reflects Faraday Future's attempt to blend two distinct business cycles. The company is betting that rapid-turnover crypto operations can generate near-term liquidity while it develops embodied AI solutions for its long-cycle electric vehicle platform. Embodied AI integration could eventually distinguish Faraday Future's vehicles in an increasingly competitive market.

### Production Reality Check

The scale of Faraday Future's challenges becomes clear when examining actual output. Since inception, the company has produced only 16 units of its flagship FF 91 vehicle. The vast majority of these units were distributed internally to employees and company advocates rather than sold to retail customers. This minimal production volume underscores why the startup must pursue alternative revenue channels to remain viable.

By leveraging its new crypto treasury and AI initiatives, Faraday Future is attempting to generate investor confidence and operating capital while it scales manufacturing capabilities for its electric vehicles.