Faraday Future Sees Strategic Opportunity in New U.S. Tariff Policy

Rhea-AI Summary

Faraday Future (NASDAQ: FFAI) views the new U.S. reciprocal tariff policy proposed by the Trump Administration as a strategic opportunity for domestic automakers. The policy aims to encourage automotive production reshoring and support local manufacturing capabilities.

The company highlights several strategic implications including: support for U.S. local manufacturing, maintenance of stable competitive positioning despite increased tariffs, and advantage from planned domestic supply chain sourcing. With approximately 50% of new vehicles sold in the U.S. being imports, FFAI sees potential benefits from shifting demand toward domestically manufactured vehicles.

The company's Bridge Strategy focuses on integrating global supply chains into the U.S. ecosystem while promoting innovation and localization of advanced mobility technologies. Global President Jerry Wang emphasized this policy shift as a structural opportunity for leveraging global resources locally in the AIEV (Artificial Intelligence Electric Vehicles) market.

Positive

• Strategic advantage from planned domestic supply chain sourcing
• Potential market opportunity with 50% of U.S. vehicle sales being imports
• Alignment with new government policies supporting local manufacturing

Negative

• Increased tariffs could affect overall cost structure
• Heavy reliance on future policy developments for competitive advantage
• Dependency on successful implementation of domestic supply chain plans

LOS ANGELES--(BUSINESS WIRE)-- Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI) (“Faraday Future”, “FF” or “Company”), a California-based global shared intelligent electric mobility ecosystem company, today announced that the reciprocal tariff policy proposed by the Trump Administration represents an opportunity for U.S.-based automakers.

The new policy, introduced by the Trump Administration, is designed to encourage reshoring of automotive production to the United States and to support companies with local manufacturing capabilities. Faraday Future believes that these changes will accelerate its mission to deliver Artificial Intelligence Electric Vehicles (AIEVs) with exceptional price-performance ratios, leveraging global innovation while strengthening domestic industry.

Key Strategic Implications:

1. Support for U.S. local Manufacturing
   The tariff initiative offers targeted support for automakers with U.S. production and manufacturing, providing incentives that align with FF's commitment to American reshoring.
2. Stable Competitive Positioning
   Despite increased tariffs, the relative cost structure between FF and its competitors is expected to remain consistent.
3. Local Supply Chain Advantage
   A substantial portion of FF’s supply chain are planned to be sourced domestically, further enhancing resilience and efficiency.
4. Market Shift in Import Reliance
   With nearly 50% of new vehicles sold in the U.S. currently being imports, FF is positioned to benefit from shifting demand toward domestically manufactured vehicles.
5. Strategic Industry Bridge Role
   FF's Bridge Strategy is focused on integrating high-quality, efficient global supply chains into the U.S. ecosystem, catalyzing innovation and localization of advanced mobility technologies.
6. Future-Proofing Through Policy Alignment
   FF anticipates further policy developments that support local production, reinforcing the long-term value of its manufacturing footprint in the U.S.

“This policy shift is not a crisis, it’s a structural opportunity,” said Jerry Wang, Global President of Faraday Future. “By leveraging global resources in a localized way and collaborating with our potential partners, we aim to set sail into the blue-ocean AIEV market in the United States.”

The Company reaffirmed its commitment to transforming the American electric vehicle landscape through agile innovation, strategic localization, and cross-border industry collaboration.

ABOUT FARADAY FUTURE

Faraday Future is a California-based global shared intelligent electric mobility ecosystem company. Founded in 2014, the Company’s mission is to disrupt the automotive industry by creating a user-centric, technology-first, and smart driving experience. Faraday Future’s flagship model, the FF 91 2.0 Futurist Alliance, exemplifies its vision for luxury, innovation, and performance. The new FX strategy aims to introduce mass production models equipped with state-of-the-art luxury technology similar to the FF 91 2.0, targeting a broader market with middle-to-low price range offerings. For more information, please visit https://www.ff.com/us/.

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 “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” 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 the impact of U.S. tariff policies, are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include, among others: the uncertain impact of U.S. trade and tariff policies, which remain highly dynamic and unpredictable; the Company’s ability to secure the necessary funding to execute on the FX strategy, which will be substantial; the Company's ability to secure necessary agreements to license and/or produce Super One, FX 5 or FX 6 vehicles in the U.S., the Middle East, or elsewhere, none of which have been secured; the Company's ability to homologate the Super One, FX 5 or FX 6 for sale in the U.S., the Middle East, or elsewhere; the Company's ability to secure necessary permits at its Hanford, CA production facility; the Company’s ability to continue as a going concern and improve its liquidity and financial position; the Company’s ability to pay its outstanding obligations; the Company's ability to remediate its material weaknesses in internal control over financial reporting and the risks related to the restatement of previously issued consolidated financial statements; the Company’s limited operating history and the significant barriers to growth it faces; the Company’s history of losses and expectation of continued losses; the success of the Company’s payroll expense reduction plan; the Company’s ability to execute on its plans to develop and market its vehicles and the timing of these development programs; the Company’s estimates of the size of the markets for its vehicles and cost to bring those vehicles to market; the rate and degree of market acceptance of the Company’s vehicles; the Company’s ability to cover future warranty claims; the Company faces competition from multiple sources, including new and established domestic and international competitors; the performance and security of the Company’s vehicles; changes in U.S. and international trade policies may adversely impact our business and operating results; current and potential litigation involving the Company; the Company’s ability to receive funds from, satisfy the conditions precedent of and close on the various financings described elsewhere by the Company; the result of future financing efforts, the failure of any of which could result in the Company seeking protection under the Bankruptcy Code; the Company’s indebtedness; the Company’s ability to cover future warranty claims; the Company’s ability to use its “at-the-market” program; insurance coverage; general economic and market conditions impacting demand for the Company’s products; potential negative impacts of a reverse stock split; potential cost, headcount and salary reduction actions may not be sufficient or may not achieve their expected results; circumstances outside of the Company's control, such as natural disasters, climate change, health epidemics and pandemics, terrorist attacks, and civil unrest; risks related to the Company's operations in China; the success of the Company's remedial measures taken in response to the Special Committee findings; the Company’s dependence on its suppliers and contract manufacturer; the Company's ability to develop and protect its technologies; the Company's ability to protect against cybersecurity risks; and the ability of the Company to attract and retain employees, any adverse developments in existing legal proceedings or the initiation of new legal proceedings, and volatility of the Company’s stock price. 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 other documents filed by the Company from time to time with the SEC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250403954440/en/

Investors (English): ir@faradayfuture.com

Investors (Chinese): cn-ir@faradayfuture.com

Media: john.schilling@ff.com

Source: Faraday Future Intelligent Electric Inc.

FAQ

How will the new U.S. tariff policy affect Faraday Future (FFAI) operations?

The policy will support FFAI's local manufacturing capabilities and domestic supply chain strategy, potentially providing competitive advantages through targeted incentives for U.S.-based production.

What percentage of FFAI's supply chain will be sourced domestically?

While the exact percentage isn't specified, the PR indicates a 'substantial portion' of FFAI's supply chain is planned to be sourced domestically.

How does FFAI's Bridge Strategy align with the new tariff policy?

The Bridge Strategy focuses on integrating global supply chains into the U.S. ecosystem while promoting local innovation and advanced mobility technologies development.

What market opportunity does FFAI see in the current U.S. auto import situation?

With nearly 50% of U.S. vehicle sales being imports, FFAI sees an opportunity to capture market share through domestic manufacturing as demand shifts to U.S.-made vehicles.