AutoBeta(AutoBeta.net)12/02 Report--

Only four months after listing, the future FF of Faraday under Jia Yueting has been full of twists and turns. The latest news today shows that Faraday will be investigated by American law firm or face litigation in the future. Law firm Block & Leviton is investigating whether Jia Yueting's Faraday has violated US securities laws and regulations in the future and may file a lawsuit to help investors who have suffered financial losses as a result of buying its shares, according to several media reports.

On November 24 this year, Faraday issued news in the future that the company had received a warning letter from Nasdaq because it failed to submit its Q3 financial report for 2021 on time and was accused of not complying with the Nasdaq listing rules. Faraday is recommended to submit its quarterly report to September 30, 2021 within 60 days and abide by the Nasdaq listing rules, no more than 180 days at the latest. In addition, NASDAQ notified Faraday's future that it would be listed as a non-compliant Nasdaq listed company within five working days from November 17, 2021, and its share price fell 2.18% on November 24 and 3.09% on November 26th. To this end, Faraday responded in the future that the failure to submit third-quarter results was affected by a short report released by J Capital Research Mechkin Investment, a US short seller, and was under independent review of its allegations of financial fraud.

On November 29th, Faraday's future official announcement said: to clarify the rumors that "Faraday received delisting notice in the future", the announcement showed that whether the receipt of the NASDAQ warning letter by Faraday Future means that NASDAQ asked FFIE to delist, which is a misinterpretation. FF hereby clarifies that the Nasdaq warning letter is only related to the delay in the submission of Q3 financial statements by FF, which is a normal procedure. Within 60 days of receipt of the Nasdaq warning letter, FF will submit a compliance plan to Nasdaq, which will help FF obtain a grace period of up to 180 days from the initial deadline for submission of 10FQ to submit 10FQ or any other non-compliance documents. In addition, the clarification pointed out that FF is maintaining close contact with NASDAQ and is confident that it will return to normal status in the short term, and that as long as the company returns to normal SEC documents and submits them on time, there will be no real risk of stock delisting.

At the close of trading on November 29th, Faraday's future share price remained at about $6, with a market capitalization of about $2 billion. Compared with the market capitalization of $4.5 billion on the future listing day of Faraday on July 22 this year, only four months later, its market value has "shrunk" by more than half, closing at $6.58 per share on December 1, with the latest market capitalization of $2.134 billion. Industry insiders pointed out: recently, Jia Yueting has also been caught in a whirlpool in the United States, and the operation of the whole company has been very difficult recently.

Reviewing Jia Yueting's process of founding Faraday's future FF, it can be said that there are twists and turns. In May 2014, Jia Yueting founded Faraday Future in the United States and immediately harvested a lot of attention. In December 2015, FF said it would spend $1 billion to build a 3 million-square-foot manufacturing plant in North Las Vegas, Nevada, but a year later FF had funding problems and the project was suspended. Jia Yueting unveiled in Singapore with FF's first car, the FF91, in 2017, and the delivery date has been uncertain since then. In February 2018, Evergrande Group Xu Jiayin became the largest shareholder in FF with HK $6.7 billion. Evergrande had no choice but to withdraw because of the struggle for dominance, retaining only 20 per cent of FF's pre-IPO stake.

In October 2019, Jia Yueting was mired in a debt crisis and had to file for personal credit bankruptcy in the United States. He no longer served as CEO of FF and was replaced by Bi Fukang, the former head of BMW's i8 program. Jia Yueting filed for bankruptcy restructuring in 2020, and his debt will be repaid with his stake in FF. On July 22, 2021, the merger of FF and SPAC went public in the United States, raising more than $1 billion and said it would deliver FF91 within the next 12 months. But Faraday was shorted in the future soon after it went public. In early October, J Capital Research Mechkin Investment, a US short seller, issued a short selling report on FF, which pointed out that Faraday's future fabricated car bookings did not have the strength to sell cars, and through on-site visits, analysis of the company's financial report data and technical capabilities, combined with the operation of a series of capital after listing, pointed out that "Faraday is unlikely to sell a car in the future." This was followed by a warning letter from NASDAQ.

Up to now, there is still no clear answer about the next step of Faraday's development. Up to now, FF is still not in mass production. In addition, the location of FF's headquarters in China and factory construction have not yet been determined. It has been reported that Faraday plans to settle in Shanxi in the future, but Faraday will not comment in the future.

At present, Faraday has planned three models in the future, including the most high-end FF91 model, the high-end mass market FF81 model and the mass market FF71 model. The delivery time of FF91, the first mass production car of FF, has also been determined and is scheduled to be delivered in July next year. The other two models, FF81 and FF71, are expected to achieve mass production by the end of 2023 and 2024 respectively, but based on Faraday's current development. There are still questions about whether FF can build a production car.

Welcome to subscribe to the WeChat public account "Automotive Industry Focus" to get the first-hand insider information on the automotive industry and talk about things in the automotive circle. Welcome to break the news! WeChat ID autoWechat