Faraday Future Intelligent Electric Inc. (FFAI) saw its shares rebound sharply in after-hours trading after the company outlined a major robotics restructuring and a strategic shift for its automotive business, centered on a proposed $200 million robotics combination.

FFAI closed the regular session at $1.41, down 12.42%, before jumping 53.19% to $2.16 once the market closed. After-hours trading takes place outside regular market hours, and price moves made in that session do not always carry over into the next regular session. The surge followed news that Faraday Future plans to combine its robotics operations with Nasdaq-listed AIxC in a transaction valuing the robotics business at an estimated $200 million.

Faraday Future Plans $200 Million Robotics Combination

Faraday Future signed a non-binding term sheet to combine its robotics assets with Nasdaq-listed AIxC. Because the term sheet is non-binding, the combination would advance only if the parties execute definitive agreements, making that step a key milestone to watch as the proposal progresses. Under the proposed terms, the parties value the robotics business at approximately $200 million, while AIxC carries an estimated pre-transaction valuation of $55 million. Following completion, FFAI expects to become AIxC's largest controlling stockholder.

As part of the proposed transaction, AIxC plans to adopt the FFR name and abandon its existing cryptocurrency strategy, a wholesale redirection of the listed company's focus. The company would instead focus entirely on robotics development, manufacturing, deployment, sales, data, and related services. The proposed structure also includes an 18-month lock-up arrangement covering shares linked to the robotics business, a mechanism that typically restricts the sale of those shares during the lock-up period.

Faraday Future's robotics division shipped 552 devices through August and generated approximately $1.52 million in cumulative revenue, according to the company. The segment posted average second-quarter contribution margins above 30% across its robotics products. Management expects robotics ecosystem revenue to reach $7.1 million during 2026, a sizable step up from the cumulative revenue recorded to date, before rising substantially in later years, in line with the company's broader Physical AI strategy, an approach centered on AI systems that operate in the physical world through robotics and related hardware.

Robotaxi Strategy Expands Faraday Future's Automotive Business

Faraday Future also plans to reposition its automotive operations around Robotaxi services and intelligent cabin technology. The company intends to work with RoboShare on autonomous shared mobility operations and vehicle deployment services, with RoboShare providing support across vehicle onboarding, operations, rentals, and customer access.

The automaker additionally plans to explore connectivity with external Robotaxi networks, including possible integration with the Cybercab ecosystem. Under the plan, Faraday Future would extend its EAI cabin technology into other intelligent vehicles while connecting its own cars to mobility networks. The approach would shift part of the business toward a lighter-asset shared transportation model, an approach that reduces the fleet and operating infrastructure a company must own outright to run mobility services.

Physical AI Investment and Holding Company Plans

Beyond the robotics combination and Robotaxi pivot, Faraday Future plans to expand its role as a Physical AI investment and holding company. The company aims to incubate businesses before supporting their independent financing, operations, and possible public listings, a structure commonly used by holding companies to let individual units pursue capital on their own terms. That structure could separate mature operations from the parent company while allowing FFAI to retain ownership exposure to their future business development.