Faraday Future, the California-based electric vehicle (EV) manufacturer, is shifting its business focus from luxury EVs to humanoid robotics as its initial ambitions to rival Tesla have not materialized. After years of struggling to generate significant sales of its high-end electric FF 91 model, the company is now leveraging its technology and production infrastructure to enter the competitive global robotics market.
The company, headquartered in El Segundo, displayed its humanoid robots capable of performing tasks such as dancing and physical demonstrations. Faraday Future plans to manufacture these robots domestically in California using components imported from China, positioning its offerings for applications including education, household chores, warehouse logistics, and customer service. Chris Chen, co-chief executive of Faraday Future’s robotics division, emphasized the company’s aim to build a “holistic physical AI infrastructure” rather than just a single robot.
Faraday Future’s electric vehicle business has faced significant challenges. Since 2023, the company reportedly sold only 16 units of its FF 91 model and recently launched a second iteration, the FF 91 2.0, which carries a price tag of approximately $300,000. This high cost, combined with limited production, has hindered widespread adoption. The company’s shares have plunged more than 99% from 2021 peaks, trading below $2 per share as of June 2024, and it had to execute a reverse stock split to maintain its Nasdaq listing. In its second-quarter earnings report, Faraday Future posted a net loss of $39 million, attributed to low sales volumes across both its electric vehicles and robotics divisions.
Industry analysts remain skeptical about the company’s prospects in the robotics field. Sam Abuelsamid, a mobility analyst, noted that while many companies are pursuing robotics, their real-world utility, especially in education and home settings, remains uncertain. Faraday Future, however, is pursuing a different approach by targeting specific niches such as industrial work, child care, and customer service. Chen described robots like the “All-New Futurist,” a full-sized humanoid robot priced at around $90,000, and the smaller “Master” model starting at $38,000, as versatile tools that could augment human labor rather than replace it.
Founded in 2014 with backing from a Chinese billionaire, Faraday Future initially aimed to compete with Tesla in the luxury electric vehicle market. The company invested nearly $4 billion in a factory in Hanford, California, intended to produce its EVs. With the pivot to robotics, that facility will now support the assembly of robotic products. Faraday Future also intends to develop a more affordable electric van, expected to be available next year, signaling its continued interest in the EV sector despite current setbacks.
The company aims to distinguish itself among a growing number of robotics firms, particularly Chinese competitors, by emphasizing products assembled in the United States. This strategy aligns with recent U.S. restrictions on Chinese imports of certain types of robots and power inverters. Faraday Future claims it has delivered approximately 400 robotic units to date and anticipates shipping 2,000 units in 2024.
While it acknowledges the potential for labor market disruptions associated with robotic automation, Faraday Future maintains that its technology will enhance productivity and create new employment opportunities. As the EV industry continues to evolve, Faraday Future’s trajectory reflects a broader trend among technology companies expanding into artificial intelligence and robotics to diversify their offerings.