AutoBeta(AutoBeta.net)09/20 Report--

On September 19th, Faraday Future FaradayFuture (hereinafter referred to as "FF") announced that substantial progress has been made in the cooperation between FF and Geely Holdings at the 919th Futurist Co-creation Festival held in Beijing. Chen Xuefeng, CEO of FF China, said, "the cooperation between FF and Geely Holdings has made substantial progress and achieved the first stage of technical cooperation. At present, the technical teams of both sides are closely docking to carry out the acceptance and development preparation of the platform technology. The implementation of this technical cooperation will help promote the discussion of further cooperation between the two sides, and will also promote the development of FF's business in China. "

According to previous reports, on January 29th this year, both FF and Geely Holdings Group simultaneously 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 holding Group also participated in a small amount of investment in the listing of Faraday Future SPAC. On December 14, 2020, French Automobile (Zhuhai) Co., Ltd. was established with a registered capital of US $250 million and fully owned by FF Hong Kong Holding Limited. The registration authority is the Commercial Service Bureau of Hengqin Guangdong-Macao Deep Cooperation Zone. It is understood that after FF is listed in the United States, it will establish a production base in Zhuhai, and Geely may lead the production and manufacture of FF products as a partner.

A person familiar with the matter revealed that in the latest round of financing of FF, Zhuhai state-owned assets invested 2 billion yuan, while Zhuhai's two leading state-owned enterprises, Gree Group and Huafa Group, joined hands in the investment, but the investment amount was less than 2 billion yuan. Subsequently, it was reported that the relevant departments of Zhuhai are discussing FF financing and landing cooperation with Faraday in the future. Faraday has registered and established a new company in Hengqin New area in the future and will land in the form of a joint venture in the future. On Aug. 25, China Business reported that French cars owned by FF have worked in the joint office in Zhuhai, but there is no information on the company's name and house number, and there is no information guide. The head of French Automobile (Zhuhai) Co., Ltd. told the media: FF has sufficient working capital after its listing and financing on July 22nd, and the cooperation with local state-owned assets continues, and FF will operate in many Chinese cities in the future.

However, according to media reports, on the eve of the listing of FF, a document from PSAC, the merger party of FF, showed that China's first-tier cities that had originally invested in FF had issued a notice that the investment could not be completed due to foreign exchange reasons, and that its investment quota had now been transferred to relevant investment institutions. The new relevant investment institution of FF has completed the signing of the investment agreement and completed the transfer within the specified time. Subsequently, the "first-tier city" was confirmed by many parties as Zhuhai City, Guangdong Province. In addition, Chen Xuefeng said that FF91's first flagship stores in China will be located in Beijing, Shanghai, Guangzhou and Shenzhen. At the 919th Futurist Co-creation Festival, FF announced FF91's sales and channel strategy in China for the first time, revealing that FF has successfully created a set of online and offline ecological O2O direct sales model, which will form a light asset sales network through online platforms (FFIntelligentApp and FF.com), FF's own stores, partners' own stores and showrooms. FF said that in the two months since the launch of FFIntelligentApp, more than 70 per cent of new orders have come from the APP platform and have been upgraded iteratively. Chen Xuefeng, FF China CEO, said in an interview with the media that the Chinese market would contribute 70 per cent of sales.

It is understood that Faraday has planned 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." On July 28th, FF announced that all 300 units of the limited edition FF91 Futurist Alliance Edition had been sold out worldwide.

Judging from the current FF official announcement, the cooperation between FF and Geely Holdings has indeed made substantial progress, from the creation of FF to the listing of FF, it is not easy for FF. Before Lafarty's biggest problem in the future is the problem of capital, now successful listing financing, for FF can be described as a shot in the arm, and now Geely Holdings technology investment, for FF will help FF91's mass production. However, since FF went public, its share price has been in a state of breaking. To date, FF shares are trading at $10.79, compared with an IPO price of $13.78 and a total market capitalization of $3.5 billion.

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