tl;dr
Faraday Future, a struggling electric vehicle company, has launched a new cryptocurrency strategy by creating the C10 Index, a market-cap-weighted basket of cryptocurrencies dominated by Bitcoin and Ethereum. The company has invested $30 million in crypto and plans to increase this to $1 billion, sh...
Faraday Future (NASDAQ: FFAI), often labeled a zombie EV company due to its prolonged struggles, has recently jumped on the cryptocurrency bandwagon by unveiling a new crypto strategy. The company introduced the C10 Index, which is a market-cap-weighted basket of cryptocurrencies, with Bitcoin constituting nearly half of the index and Ethereum holding a 24% share. Faraday Future has already invested $30 million in cryptocurrencies and aims to increase this figure up to $1 billion, signaling a bold pivot from its traditional electric vehicle ambitions.
Founded in 2014, Faraday Future initially aimed to compete with Tesla, debuting the striking FFZERO1 concept car in 2016 as a showcase of its technology. Despite high hopes, the company has faced repeated production delays and has delivered very few vehicles. Its financial and regulatory troubles have been significant, including a Wells notice from the SEC in 2021 concerning its SPAC merger. The stock price has suffered dramatically, plunging roughly 98% from its peak, reflective of the classic SPAC boom-and-bust cycle.
Meanwhile, Tesla remains a major player in the cryptocurrency world, ranking as the 11th largest Bitcoin treasury holder with 11,509 BTC. Tesla’s initial $1.5 billion Bitcoin purchase in early 2021 had a notable impact, fueling a cryptocurrency bull run and underscoring the growing ties between the tech and crypto sectors.