AutoBeta(AutoBeta.net)04/08 Report--

On April 8, according to foreign media reports, Faraday Future said on April 4 that he had received a letter from Nasdaq Stock Market Co., Ltd. NASDAQ Stock Market Co., Ltd. stated that Faraday Future did not comply with NASDAQ's continued listing rules because Faraday Future did not submit its annual report for the year ended December 31 last year in the form of a 10-K file. Faraday Future said it was expected to receive the notice and hoped to return to compliance by April 19.

It is understood that on November 24 last year, Faraday Future said it received a warning letter from NASDAQ because it failed to submit Q3 earnings report for 2021 on time and was accused of not complying with NASDAQ listing rules. NASDAQ pointed out in the letter that Faraday was advised to submit quarterly reports ending September 30,2021 within 60 days and comply with NASDAQ listing rules, no later than 180 days. Nasdaq gave the company a deadline of May 6, 2022 to file its report. Failure to submit third-quarter financial results on or before May 6,2022 will result in a notice of delisting of securities and forced delisting.

Faraday's future response to this, did not submit the third quarter earnings report is mainly due to the US short-selling agency J Capital Research Miqijin investment issued a short-selling report, is under independent review of its financial fraud allegations. In addition, officials clarified the receipt of the delisting notice, saying whether Faraday Future's receipt of a Nasdaq warning letter meant Nasdaq asked FFIE to delist, which was a misinterpretation. FF hereby clarifies that the Nasdaq warning letter is only related to FF's delay in submitting Q3 earnings, which is a normal procedure. Within 60 days of receiving the NASDAQ Alert Letter, FF will submit a compliance proposal to NASDAQ that will help FF obtain a grace period of up to 180 days from the initial deadline for filing a 10-Q or any other non-compliant filing. In addition, the clarification notes that FF is in close contact with Nasdaq and is confident of returning to normal status in the short term, and that there is no real risk of delisting as long as the company returns to normal SEC filings on time.

It is understood that as early as October 2021, investment firm and short seller J Capital Research Ltd. released a 27-page Faraday short report saying FF would never deliver a car. In response, FF founder Jia Yueting said: "Cold rice hot fry, nonsense" and reminded J Capital Research that "it is not the first time it has been hit." FF sources also said the report was full of misleading information, lacking logic and no factual basis. FF expresses its disappointment and condemnation of the agency's irresponsible behavior and reserves the right to pursue such false allegations.

Faraday's future has not been peaceful in recent times. In March, Faraday Future acknowledged that certain members of the company's management team and employees had received preservation notices and subpoenas from SEC staff for allegedly publishing inaccurate information to investors, according to Faraday Future's regulatory filing with the Securities Commission. In February, a special committee of Faraday Future's independent board admitted that only a few hundred of Faraday Future's 14,000 orders had been paid for, misleading investors. Subsequently, Faraday's future responsible persons were demoted or suspended.

Although FF will face many difficulties in the near term, the process of FF, its first model, continues. On February 24, FF's first model FF91 was officially launched and will be put into production in the third quarter of this year. At the scene, Jia Yueting test drive FF91 and said, FF91 model 100 km acceleration far more than luxury sports car Maybach, but also more than some Ferrari models, FF will next go all out to promote the mass production of this model.

According to earlier reports from the automotive industry, Faraday Future was founded in 2013. FF91 is its first model. The new car was launched in Las Vegas in January 2017. It is positioned as a high-end luxury electric car. It takes only 2.39 seconds to accelerate from 0-60 mph, can output 1050 horsepower, can travel 300+ miles on a single charge, and can last up to 700 kilometers under NEDC conditions. In terms of price, the price in China and the United States market is 2 million and 200,000 US dollars respectively. Although official news, FF91 model will be put into production in the third quarter of this year, but some industry insiders said: Because FF91 positioning high-end, sales price is expensive, brand awareness is not enough. Even if it starts production, it is difficult to convert into cash flow immediately, and a large amount of capital needs to be continuously input in the future. At present, FF has no hematopoietic ability, loss is normal. It is particularly important to raise money and live on. For FF, the fund-raising channel of stock market is also particularly critical. If it is not handled well, FF or fall into the crisis of capital chain fracture again.

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