What Faraday Future Intelligent Electric, Inc. told the SEC could break it.

Faces escalating U.S. tariffs — a 100% EV tariff, a 25% global tariff on autos and parts, and rising tariffs on Chinese-made products — that raise component and vehicle costs given its US/China supply chain.

“The highest of these tariffs are applicable to electric vehicles, which will be subject to a tariff rate of 100% from August 1, 2024, an increase from the earlier rate of 25%.”

Demand depends partly on EV tax credits and government incentives, whose availability is uncertain as the administration moves to modify or diminish EV production and purchase incentives.

“Consequently, the availability of these tax credits or other government incentives and our ability and that of our customers and competitors to benefit from these credits and incentives, remain uncertain at this time.”

Although several battery-cell sources may exist, the company has fully qualified only one supplier and has very limited flexibility to switch; a disruption would halt vehicle production until another supplier is qualified.

“While we believe several sources for battery cells are available, it has to date fully qualified only one supplier and has very limited flexibility in changing battery cell suppliers.”

The FF 91 uses ~2,200 purchased components from ~200 suppliers, many of which are single-source, and the company relies on a single supplier for the majority of FX Super One components and engineering services — broad single-source supplier dependence.

“The FF 91 model incorporates approximately 2,200 purchased components sourced from approximately 200 suppliers, many of whom are currently our single-source suppliers for the components they supply.”

All FF 91 series production occurs at a single ~1.1M-sq-ft facility in Hanford, California, so any disruption there would halt the company's only manufacturing.

“The Company currently builds its FF 91 series vehicles at FF aiFactory California, its manufacturing facility located in Hanford, California.”

Financing relies on convertible SPA notes with low fixed conversion prices, full-ratchet anti-dilution protection and 25% default redemption premiums — highly dilutive death-spiral-type financing against minimal revenue.

“The 2025 March Unsecured SPA Notes are convertible at the option of the holder into shares of the Company's Class A common stock at an initial fixed conversion price of $ 1.29 per share, subject to customary anti-dilution adjustments and full ratchet anti-dilution price protection .”