An EV maker just bought a biotech to go all-in on crypto—Can Faraday Future’s $41 million gamble actually pay off?

Faraday Future’s $41 million stake reframes its future — and raises bigger questions about public-company pivots into Web3

Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI) has surprised both Wall Street and the technology community by announcing a $41 million investment in Qualigen Therapeutics, Inc. (NASDAQ: QLGN). The deal will see the Nasdaq-listed biotech rebranded into CXC10, a public company devoted to crypto and Web3 ventures. For Faraday Future, which has long struggled to scale its ultra-luxury EV business against financial headwinds, the investment represents an attempt to create what executives describe as a “dual-flywheel” model. The company hopes its electric vehicles will serve as one pillar of growth while CXC10’s crypto products become the second.

Faraday Future will invest about $30 million for roughly 55 percent ownership of Qualigen’s stock. Founder and Global Co-CEO YT Jia is adding a personal $4 million investment with a two-year lock-up, taking his direct holding near 7 percent. Together, the company and Jia will control more than 62 percent of Qualigen once the transaction closes and shareholders approve the restructuring. The move was announced during Faraday Future’s annual “919” Futurist Day, held in Los Angeles, where management positioned the deal as the next chapter of its strategic reinvention.

Why is Faraday Future buying control of a biotech company to build a Web3 business?

The logic is speed and structure. Rather than waiting years to spin off or incubate a crypto venture from scratch, Faraday Future can use Qualigen as a ready-made Nasdaq-listed chassis. This provides access to capital markets, a governance framework, and shareholder visibility, all under SEC disclosure rules. By rebranding Qualigen as CXC10, the company can layer new leadership, embed crypto-native strategies, and quickly begin deploying treasury and token-economy products.

At the heart of the new entity will be a C10 Treasury and C10 Index. These are designed to manage a basket of the top ten crypto assets under a public-company structure. Faraday Future has pitched this treasury as a potential revenue source, pointing to unrealized gains already generated since its pilot allocation. Alongside the index and treasury, the new roadmap calls for a “BesTrade DeAI Agent” trading platform and a broader suite of token-driven ecosystem products. All of these would operate under the CXC10 banner, separate from the EV division but still under Faraday Future’s control.

How does this tie back to Faraday Future’s “EAI + Crypto” strategy unveiled earlier this year?

In August 2025, Faraday Future launched its “EAI + Crypto” blueprint. The company outlined a target of $500 million to $1 billion in crypto treasury allocations, subject to available funding, with an initial $30 million earmarked for deployment. The strategy emphasized an 80-20 split between passive indexing and active opportunistic trading. By securing Qualigen as a rebranded vehicle, Faraday Future has now created the operational arm to execute that vision.

The context matters. Over 2024 and 2025, Faraday Future endured repeated reverse stock splits, funding gaps, and listing warnings. Scaling EV production was hampered by liquidity shortages, while investor patience wore thin. By creating a second engine through CXC10, management is attempting to hedge cyclicality in the luxury EV market with a business model tied to crypto treasury performance and token-economy monetization.

How are the stocks reacting and what does early sentiment reveal?

Initial reactions have been volatile. Faraday Future stock has been trading around $1.77, while Qualigen surged on the announcement to above $7 intraday before settling closer to $2.84. Such sharp swings are common in small-float control deals, where PIPE terms and speculative momentum dominate order flow.

For investors, the signals are mixed. On one hand, retail traders are showing enthusiasm for the speculative upside of a biotech-to-crypto rebrand. On the other, long-only institutional investors remain cautious, waiting to see how governance, disclosures, and actual product launches evolve. The consensus among analysts following the deal is that Faraday Future’s equity should be treated as a speculative “hold” pending clarity on execution milestones, while Qualigen’s near-term action is best interpreted as an event-driven trade rather than a long-term investment.

What exactly will change inside Qualigen once rebranded as CXC10?

The governance structure will be reshaped significantly. Faraday Future will gain expanded board nomination rights and embed its senior leadership into CXC10. YT Jia is expected to serve as Chief Advisor, while Jerry Wang, Faraday Future’s Global President, is expected to step in as Co-CEO of CXC10. Over time, the board could expand to seven members, with Faraday Future nominating the majority.

Operationally, CXC10 will focus on three growth engines: the C10 Index and Treasury, the BesTrade DeAI Agent trading platform, and a token-economy ecosystem. Company documents have also hinted at up to six distinct product launches spanning index-tracking funds, treasury structures, algorithmic trading systems, and token issuance platforms. This ambitious scope underlines the intention to build CXC10 into a full-stack Web3 play rather than a narrow crypto fund.

Could a crypto treasury realistically de-risk an EV business, or does this add more complexity?

Faraday Future insists that the crypto venture is not a distraction but a complementary growth pillar. The idea is that if the C10 Treasury compounds returns during a favorable crypto cycle, those gains could help fund EV operations, software innovation, or even buybacks. At the same time, a token economy linked to Faraday Future’s vehicles or loyalty programs could generate synergies across mobility and digital finance.

Skeptics point out that crypto treasuries come with their own set of risks, from extreme market volatility to regulatory scrutiny. Public companies holding digital assets must navigate complex accounting rules around impairment, valuation, and custody. For investors, the danger is that Faraday Future may be layering complexity onto a business that already faces execution challenges in vehicle production. Complexity, in the eyes of many institutional investors, is often the enemy of focus.

What are the regulatory and governance risks for CXC10?

The rebranding thrusts Qualigen into uncharted territory. A Nasdaq-listed company operating a crypto treasury, token ecosystem, and AI-powered trading platform will need to satisfy regulators on multiple fronts. Securities law, commodities oversight, state money transmitter rules, and potential exchange-registration concerns could all surface depending on the scope of activities.

Governance will be scrutinized even more closely. Investors will demand Sarbanes-Oxley-compliant risk controls, transparent custody policies, and independent audit assurance. After a wave of crypto failures over the last cycle, credibility depends on proving that CXC10 can run digital-asset operations with the same rigor expected of financial institutions.

How should investors read the buy-sell calculus over the next quarter?

In the short term, both FFAI and QLGN are likely to trade on news flow rather than fundamentals. Faraday Future shareholders will toggle between optimism that a second growth engine has been created and concern that management’s focus is drifting away from core EV execution. Qualigen traders will speculate on the rebrand and any early crypto treasury disclosures.

For investors seeking a base-case positioning, Faraday Future screens as a speculative “hold” until audited reporting from CXC10 arrives and EV deliveries show sequential progress. Qualigen, soon to be CXC10, looks more like a short-term trading vehicle until its pro forma model and token-product roadmap are clearly defined.

What milestones should the market watch across the next 6–12 months?

Three milestones will determine sentiment. First, the closing mechanics and shareholder approvals for the Qualigen deal must proceed without delay. Second, CXC10 must release a detailed product calendar, including custody partners, audit scope, and revenue models. Third, Faraday Future’s EV business must demonstrate progress in production and delivery metrics, ensuring that the crypto pivot is additive rather than compensatory.

If these milestones are met, sentiment could migrate from speculative enthusiasm to selective institutional accumulation. If execution slips or transparency falters, the credibility discount could deepen regardless of crypto market conditions.

Final takeaways as Faraday Future sets up CXC10 through the Qualigen deal

The boldness of this move is undeniable. Faraday Future is not merely diversifying but effectively creating a parallel public company in crypto to hedge its EV risks. Supporters see it as visionary, creating an integrated “dual-engine” system that links mobility and digital finance. Critics warn that it adds complexity to a company that has yet to stabilize its auto operations.

For investors, both FFAI and QLGN remain high-risk, high-beta plays. Patience will be thin, execution will be everything, and the next quarter will be crucial. In many ways, Faraday Future is testing whether a public-company crypto pivot can coexist with industrial manufacturing ambitions. The answer will determine whether this $41 million gamble becomes a masterstroke or a cautionary tale.