AutoBeta(AutoBeta.net)07/23 Report--

On the morning of July 22nd, Faraday Future officially listed on the NASDAQ Stock Exchange and held a bell-ringing ceremony to begin official public trading under the stock code "FFIE". It is worth noting that although Jia Yueting, the future founder of Faraday, also came to the Nasdaq Stock Exchange, he did not appear on the bell-ringing platform, but watched the arrival of this moment offline.

Faraday's future listing for Jia Yueting, perhaps the greatest significance is to ease the financial pressure. Jia Yueting said in an interview with China Business News that the future listing of Faraday means a new starting point, bringing important capital flow to the company, and will go all out to achieve 12-month mass production and delivery, and has great confidence in FF91's on-time production. When asked if he would return to China, Jia Yueting gave an accurate answer: "that's a must!"

Although Faraday has achieved IPO's goal in the future, the road to listing is not so glamorous. Faraday Future announced on its website that it had reached a final agreement with SPAC on a business merger, valuing the company at about $3.4 billion (22 billion yuan) after the deal was completed, and planned to list on the Nasdaq Stock Exchange in the second quarter under the symbol "FFIE."

What is SPAC? SPAC's full name is Special Purpose Acquisition Company, which literally translates to "special purpose acquisition company". SPAC is a way of backdoor listing. Different from shell listing, SPAC, as a listing platform (shell company), has only cash but no actual business and assets. This company will invest in mergers and acquisitions of pre-listed target enterprises, and the target enterprises will quickly achieve the purpose of listing financing through mergers and acquisitions with listed SPAC.

On July 20th, after the Property Solution shareholders' meeting approved the proposed merger with Faraday Future, the company was officially renamed "Faraday Future Intelligent Electric Inc." , abbreviated FFIE. It is understood that FFIE's offering price was $13.78, up more than 40% before trading, but fell below the offering price at one point in intraday trading, and finally closed up 1.45% to close at $13.98, with a total market capitalization of $4.535 billion.

According to the data, Faraday Future was founded in May 2014, when Letv was still at his peak. At that time, two new forces of making cars on the Internet in China were set up at the same time, one was jointly founded by Li Bin and others, and the other was Letv supercar, dominated by Jia Yueting. At the end of 2014, Jia Yueting announced Letv's "SEE plan". According to officials, Letv supercars make China's auto industry bend to subvert the traditional giants of Europe, the United States, Japan and South Korea, effectively solve urban haze and traffic congestion, while electric vehicles have high hopes for almost zero emissions compared with traditional fossil fuel vehicles. After the establishment of Letv Automobile, it attracted many senior leaders in many industries to join, and received investment from many investors and Internet enterprises, which made people look forward to the birth of Letv Automobile.

Letv supercar LeSEE, which locates a D-class Internet unmanned electric vehicle, unveiled its first concept car on April 20, 2016. "when I saw this car, I wanted to cry and burst into tears," Jia Yueting said at the press conference. "few people understand the ups and downs, storms and even tribulations we have experienced. Although it is not yet a mass production car, we promise that the day of mass production will not be too far away. In December 2016, the Letv Super Automobile Factory project was officially launched in Mogan Mountain High-tech Industrial Development Zone, Deqing County, Huzhou City, Zhejiang Province, with a total investment of 20 billion yuan. The mass production of Letv's car seems to be just a foot in the door, but this year has also become a turning point for Letv's car.

It was in this year that the Letv system capital chain crisis broke out and the stock price began to fall all the way. In May 2017, Letv laid off staff and encountered debt collection from suppliers. Two months later, Jia Yueting abandoned Leeco and left the United States to help FF finance. Letv's mass production listing was shelved and gradually forgotten by the market.

In January 2017, Faraday officially launched its first electric car, the FF 91, after which the company announced the completion of a $1 billion round of financing, with Jia Yueting, founder of Leeco, as global CEO and chief product officer. However, due to the report of Jia Yueting's personal debt crisis, FF got into financial difficulties and the car-building project continued to shut down. In 2019, Jia Yueting declared personal bankruptcy and reorganization, transferred his personal assets to creditors by way of creditor trust, and became a shareholder of FF.

On the day of Faraday's future listing, Jia Yueting said, "the listing of FF is a new starting point, solving the biggest funding problem, and then go all out to achieve 12-month mass production." With regard to the debt problem that the public is most concerned about, Jia Yueting responded, "I will solve it completely."

It is understood that at present, I will also plan three models of FF91, FF81 and FF71 in the future, of which the FF91 is the most high-end, with an expected starting price of $100000 and is expected to be launched a year later. Aimed at the upmarket mass market, FF81 is expected to start mass production 18 months after the launch of the FF91, with a target starting price of $59000. The third model, the FF71, which is aimed at the mass market, is expected to be designed and developed in 2022, with a starting price of $45000. Jia Yueting said, "I hope to become the top of the top market and have the confidence to subvert Maybach, Ferrari and Bentley."

Admittedly, the listing of FF does bring greater opportunities to Jia Yueting, and the mass production of FF91 and Jia Yueting's debt problems may be solved. At the same time, the listing of FF has also brought greater challenges, the mass production of FF91 needs more funds, and the gap in the subsequent need for funds will continue to be enlarged. In other words, the fate of FF after listing is unknown, may be the next Tesla, may also be the next Letv, as to whether Jia Yueting can win this turnaround, everything is full of uncertainties.

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