Key Highlights

● Faraday Future (FFAI) closed at $1.40 on Monday, down 13.35%, after a Friday rally of about 23% to $1.61.

● AIxCrypto (AIXC) signed a non-binding term sheet to acquire FFAI's robotics Business for around $200 million in stock.

● The deal needs definitive agreements, a fairness opinion and stockholder approval, and Jerry Wang holds roles at both companies.

● AIxCrypto is to be renamed FF EAI Robotics Ecosystem, with its ticker changing to FFR effective September 30.

Faraday Future (NASDAQ:FFAI) fell on Monday, September 28, closing at $1.40, down 13.35% from $1.61 on Friday, when the stock had rallied about 23%. The same day, a related company put forward a plan to buy its robotics business.

AIxCrypto Holdings (NASDAQ:AIXC) signed a non-binding term sheet to acquire Faraday Future's robotics business at an estimated valuation of around $200 million, to be paid in stock. In after-hours trading, one market-movers list showed FFAI near $1.43, up about 1.4%, and AIXC near $1.66.

What the Term Sheet Says

According to the announcement, AIxCrypto would be renamed FF EAI Robotics Ecosystem Inc., with its ticker changing to FFR effective September 30. Faraday Future expects to become the controlling holder of the combined company, and a private Placement of up to $30 million is also contemplated.

A term sheet is an outline of proposed terms, and this one is non-binding. The transaction would still require definitive agreements, a fairness opinion and stockholder approval, so the terms could change or the deal might not proceed.

A Related-Party Deal

The structure involves related parties. Faraday Future is AIxCrypto's majority holder, and Jerry Wang holds roles at both companies. In plain terms, Faraday would be placing its robotics business inside a separately listed vehicle it already controls.

From Electric Cars to Robots

Faraday Future is best known for its luxury electric vehicle business, including its FF 91 model. Robotics and so-called embodied AI, meaning artificial intelligence that operates in physical machines, have become one of the hottest themes in technology. That theme ran into a headwind on Monday, when chip and AI hardware stocks fell after reports that OpenAI paused Training of some frontier models.

The regular session was grim for most stocks. Stocks finished the day lower: the S&P 500 sank 59.72 points to 7,683.69, the Dow slid 347.11 points to 51,481.51, and the Nasdaq Composite lost 248.34 points to 26,820.38. The Bond Market kept flashing warning signs, with the 10-year Yield at its highest since 2007 and the 30-year at its highest since 2004, which raises discount rates across the stock market.

Definitive Terms Will Decide the Outcome

Investors will look for company filings that spell out the deal's terms, the timeline, how the $200 million valuation was set and how ownership will work in FF EAI Robotics Ecosystem. Any approvals needed before the FFR ticker starts trading will also be in focus.

After-hours moves do not always hold once the full market opens, so Tuesday's session will be an important test. Investors face a run of data this week, starting with JOLTS and consumer confidence on Tuesday, followed by PCE Inflation on Wednesday, ISM Manufacturing on Thursday and jobs on Friday.