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

The fact that Faraday Future was accused of being an "emerging electric car scam that can't sell a car" has finally come to an end. On Tuesday, local time, Faraday announced that it had completed its previously announced investigation into allegations of inaccurate disclosure, according to media reports.

The findings showed that other substantive allegations of inaccurate disclosure assessed by the Special Committee, including those in the short sellers' report, were not supported by the review evidence. In addition, the Special Committee did find some inconsistencies in the statements issued to investors and some weaknesses in corporate control and culture. In the course of the review, the Special Committee recommended certain remedial measures to strengthen oversight and corporate governance, which were approved by the Board of Directors. Measures include the appointment of Susan Swenson, who is currently chairman of the audit committee, as the newly established executive chairman, overseeing the senior executive leadership team with immediate effect; Carsten Breitfeld, the company's CEO, and Jia Yueting, founder and chief product officer, will report directly to Mr Swenson, and their annual base salaries will be cut by 25 per cent.

Data show that Faraday will be officially listed on NASDAQ on July 22, 2021. On the day of listing, Faraday said that it would deliver FF91 within the next 12 months, but Faraday was shorted in the future shortly after it was listed. In early October of the same year, J Capital Research Mechkin Investment, an American short seller, issued a 28-page short selling report on FF, pointing 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." Then Faraday received a warning letter from NASDAQ in the future, and on November 29th, Faraday issued a clarification: the NASDAQ warning letter is only related to FF's delay in submitting its Q3 financial report, 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, Faraday said in the future that financial statements could not be submitted on time due to inaccurate allegations by US short sellers, so a special committee composed of independent directors was set up to investigate inaccurate allegations of disclosures made by short sellers. On December 2, Faraday will be investigated by American law firm in the future, or face litigation. 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.

As of the close of trading on February 1 this year, Faraday's future share price remained at $4.56 per share, with the latest market capitalization of $1.479 billion, compared with the market capitalization of $4.5 billion on the day of Faraday's future listing on July 22 last year. Its market value has greatly "shrunk".

In terms of business, 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, among which the FF91, the first mass production car of FF, is scheduled to be delivered in July this year, and the other two models, the FF81 and FF71, are expected to achieve mass production by the end of 2023 and 2024, respectively. Although Jia Yueting has repeatedly stressed that the FF91 model will be delivered on time and with high quality in July this year, the future of Faraday is still full of uncertainties based on the current development of Faraday.

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