AutoBeta(AutoBeta.net)01/29 Report--

On the evening of January 28th, American electric car company Faraday Future (Faraday Future) announced on its website that it had reached a final agreement with the special purpose acquisition company (SPAC) on a business merger, valuing the company at about $3.4 billion (22 billion yuan) after the transaction was completed, and would be listed on the Nasdaq Stock Exchange under the symbol "FFIE".

In a prospectus submitted to SEC, FF said it would set up a joint venture with Geely Holdings and a first-tier city in China to support FF's production in China and FF's China headquarters. The city will also provide government subsidies, such as tax breaks and additional subsidies for the establishment of R & D centers. Geely will provide support in marketing and manufacturing. For its part, FF provides brands and intellectual property rights. FF estimates that FF's China headquarters is expected to have an annual production capacity of 100000 to 250000 vehicles from 2025 and an increase of 150000 vehicles by 2026.

On the morning of January 29th, FF and Geely Holdings Group officially announced that the two companies had signed a cooperation framework agreement to cooperate in the areas of technical support and engineering services, and to explore the possibility of a joint venture between Geely and Foxconn to provide contract manufacturing services. At the same time, Geely Holdings Group also participated in a small amount of investment in the listing of Faraday Future SPAC.

According to FF's official website, its passenger car plans for the next five years will include FF 91, FF 81 and FF 71. Among them, FF91 has started its scheduled delivery, and delivery will begin as early as the first quarter of 2022. FF 81 and FF 71 will be put into mass production in 2023 and 2024 respectively. FF expects to sell more than 400000 vehicles in the next five years, and its first model, the FF 91, is scheduled to exceed 14000.

In fact, the FF layout of the Chinese market has long been traceable. On December 14, 2020, FF established a new company in Zhuhai, Guangdong Province, with a registered capital of US $250 million, which is fully owned by FF Hong Kong Holding Limited. All this seems to fit in well with the information available. If FF does settle in Zhuhai, FF will become the second American electric car company to enter China after Tesla.

At present, the domestic field of new energy vehicles continues to be hot. Take Evergrande as an example, although its first production model has not yet been put on the market, its market value soared to HK $399.8 billion after winning HK $26 billion. In addition, including zero-running cars, Weimar cars and so on also plan to land on the Kechuang board. In contrast, FF, which plans to buy the company (SPAC) and will be listed on NASDAQ, SPAC closed up 18.49% in the previous session, with a total market capitalization of $455 million. Some netizens said that once FF is listed, Jia Yueting is also expected to make a comeback.

It is understood that FF was founded in 2016 and officially launched its first mass production electric car, FF 91, in Las Vegas in January 2017. after that, the company announced the completion of $1 billion in round A financing, with Jia Yueting, founder of Leeco, as the global CEO and chief product officer. Jia Yueting is the actual controller of FF. Subsequently, due to the outbreak of Jia Yueting's personal debt crisis, FF fell into financial problems, and the car-building project continued to shut down. At present, FF has announced that it has reached relevant agreements with Geely and Zhuhai, and its financial problems may be improved in the short term, and the time for mass production and delivery of the first model is gradually clear.

More and more enterprises enter the new energy industry, including Evergrande, Alibaba, Huawei, Tencent and other enterprises have laid out the development of new energy industry chain. In the short term, Evergrande, which is "only short of cars", relies on Evergrande Group, and the "millions of luxury cars" FF relies on Geely's financial and technical support. perhaps there is no need to worry about the development pressure brought about in the short term, but with the closure of new energy outlets, how many enterprises can last until the end?

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