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Recently, according to media reports, Faraday's future affiliated companies have been restricted from high consumption due to failure to meet the payment obligations set out in the effective legal documents. According to the contents of the consumption restriction order issued by the Beijing Chaoyang District people's Court, French Automobile (China) Co., Ltd. failed to perform the payment obligations specified in the effective legal documents within the period specified in the enforcement notice, and adopted measures to restrict consumption against the company. restrict it and its legal representative Wang Zhigang from carrying out high consumption and consumption behaviors that are not necessary for life and work.

It is understood that the case involved was that French Automobile (China) Co., Ltd. lost the case in August this year in labor disputes and personnel disputes, and was applied for compulsory enforcement of 310300 yuan, but has so far failed to pay on time, so it received a consumption restriction order this time.

Data show: French Automobile (China) Co., Ltd. is Jia Yueting car brand Faraday future domestic company, jointly owned by FF Hong Kong Holding Limited and Letv Automotive Technology Co., Ltd. Established in March 2017, the legal representative is Wang Zhigang, with a registered capital of 420 million yuan.

In fact, Faraday has registered a number of "French Automobile" companies in China in the past few years, including French Automobile (China) Co., Ltd., French Automobile (Zhuhai) Co., Ltd., French Automobile (Hubei) Co., Ltd., and so on. Earlier, officials reached a cooperation agreement with the Hubei Huanggang municipal government to relocate FF's China headquarters to Huanggang, while retaining its global headquarters in Los Angeles, California. However, there is no further progress on the news that FF China headquarters has been moved to Huanggang City. Of course, the stagnation of these affiliated companies has something to do with the poor situation of Faraday in the future.

As we all know, Faraday has always been short of funds in the future. As one of the earliest new car-building forces, FF has been building cars for 10 years and has only one model on the market so far. As its first model, sales are also a mess, with only 14 so far. Poor sales have strained Faraday's future financial position. Data show that Faraday's future net losses from 2022 to 2023 are $602 million and $432 million, respectively. As of June 30 this year, the cash used for FF's operating activities was $29.1 million. This year, Jia Yueting, the future founder of Faraday, had to announce the commercialization of personal IP, making money to repay debts and subsidizing Faraday's future car in order to save FF. But only by Jia Yueting's personal IP commercialization to save Faraday's future, hope is still very slim, after all, Faraday's future losses continue to increase.

To that end, last month Faraday officially announced the launch of a second brand, Faraday X, which aims to create a popular smart electric car with a price range of $20, 000 to $50, 000. According to the official plan, the FX brand will launch two models, FX5 and FX6, with extended range AIEV and pure electric AIEV power systems. Of these, the FX5 price range is expected to be $20, 000-$30, 000; the FX6 price range is $30, 000-$50, 000, and the two models will start production by the end of 2025 at the earliest. At present, FF has opened FX brand logo co-creation and solicitation to set up a new company, which will operate independently of the FF brand and adopt a light asset operation mode. For the arrival of the new company, Jia Yueting said that FX will be applied to the Volkswagen market with the concept of "twice the performance, half the price", and strive to become the Toyota of the AI EV era and enter the hybrid model market.

Launching a second brand, quickly entering the mass market and seizing the market with cheap models will certainly help boost Faraday's future sales. But it is worth mentioning that for the future of Faraday, how to solve the problem of capital shortage is more important. After all, officials have also revealed that the success of the second-brand model on the market depends on FF getting the necessary funds. If there is no inflow of capital, it is futile to say anything. Even if you do get the money and successfully launch a cheap model, whether it can win the favor of the public is another question.

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