AutoBeta(AutoBeta.net)10/26 Report--

Faraday laid off dozens of employees in the future earlier this month, according to two people familiar with the matter, according to Phoenix New Media Technology. Not only that, Faraday will cut all employees' salaries by 25% from next month, which is expected to last from November 1 to the end of the year to conserve cash. However, future Faraday employees will be awarded restricted shares (RSUs) to offset the pay cuts, which will be issued in December. Faraday also offers a bigger pay cut in the future if employees want to exchange for more restricted stock.

On the morning of July 22nd, US time, Faraday Future officially listed on the NASDAQ Stock Exchange and held a bell-ringing ceremony to begin official public trading under the stock symbol "FFIE". The offering price of FFIE was $13.78 and closed 1.45% higher on the first day, closing at $13.98, with a total market capitalization of $4.535 billion. However, by the close of the latest day, Faraday had closed at 58 cents in the future, leaving a total market capitalization of only $230 million and its shares had fallen more than 95 per cent.

On the day Faraday landed on NASDAQ in the future, founder Jia Yueting said in an interview that "we will go all out to achieve 12-month mass production and have great confidence in on-time production with FF 91." Now, as that time approaches, officials have repeatedly changed their tune, from July to the third quarter, when the time of mass production is once again a mystery.

The mass production of FF 91 is particularly important for Faraday's future, and whether it can be successfully delivered is related to whether it can avoid bankruptcy. Previously, FF CEO Bi Fukang said in an interview that FF could launch FF 91 without additional capital, while the company also said that it would start production in China in the future, and that negotiations were at an early stage. Earlier, Faraday announced a partnership with Geely in the future, but there has been no progress over the past year.

At the same time, since Jia Yueting abandoned Letv and went to the United States to pursue the car dream, it seems that the word "lack of money" has closely followed Jia Yueting, and in order to solve the financial problem, Jia Yueting also found Xu Jiayin of Evergrande, and even in order to solve the debt crisis, he finally sold all his equity to all creditors in the form of personal bankruptcy, but so far, none of these has solved the fundamental problem.

On September 27th, Faraday issued an announcement announcing that it had reached a final agreement with the company's major shareholder FF Top (FF Global partner) on financing and board restructuring. According to the agreement, FF Top and FF formally reached a package of governance structure adjustment agreements, including restructuring the board of directors, and Jia Yueting, founder of FF, led FF Partners to successfully reorganize the company's board of directors.

At the same time, Faraday will also receive up to $100m in financing from Daguan and US ATW Partners investors in the future. On August 16th, FF released its second-quarter 2022 results, showing that the company's operating loss in the second quarter of this year increased to about $137 million from an operating loss of about $28 million in the same period last year, while its net loss increased to $142 million from a net loss of $52.775 million in the same period last year.

Meanwhile, in a filing to SEC in July, Faraday said it needed additional funds to launch FF 91 and hoped to raise about $325 million by the end of the year to fund its operations. Faraday said in a statement that the company was seeking more capital to ensure that the company would operate until the end of 2022 or longer, and continued active discussions with funding providers to finance the production and delivery of its FF 91.

Eight years later, Faraday's first car in the future has not yet been officially delivered, and in 8murK filings with the Securities and Exchange Commission (SEC), the company made it clear that it does not plan to start delivering its first electric car, the FF 91, in the third or fourth quarter of 2022, which means that the delivery of the FF 91 has been delayed again.

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