December 31 news, according to Phoenix Network Technology reported that the US law firm Block and Leviton believe that Jia Yueting's Faraday Future Electric Vehicle Company violated U.S. securities-related laws and regulations, plans to file a class action lawsuit against it, and is calling on Faraday Future stock victims to join the lawsuit.
After Faraday Future's listing, the stock price once exceeded $16 / share, the market value was close to $6 billion, but now it has fallen to $5.17 / share, Faraday's future market value is only $1.677 billion, even less than Evergrande Automobile.
The main reason why Faraday Future's stock market has not performed well is because no product has been listed so far. On January 4, 2017, Faraday Future released its first electric vehicle FF91 at CES 2017, which will turn 5 years after New Year's Day, but FF91 has not been produced. Individuals or institutions investing in Faraday Future need to think about whether the company still deserves their continued support.
In October 2021, investment consultancy J Capital Research released a 28-page short report that determined that Faraday's future car would not be sold. Faraday Future then received a delisting threat from NASDAQ for failing to submit its third-quarter earnings report in a timely manner.
So the question is, can Faraday Future FF91 achieve mass production? According to Xiao Lei's understanding, Faraday's future factory is located in The town of Hanford on the River in Washington State, USA, and Jia Yueting has invited the local mayor to visit the factory. The factory must have been built, but it was not enough to produce cars on only one piece of land, and it also needed a lot of machinery and equipment and employees.
Jia Yueting gave the promise that Faraday Future FF91 will start delivery next July. In October this year, it was reported that the equipment of Faraday Future's factory had been installed, and in the middle of this month, Faraday Future announced that it was building the infrastructure of the factory, and everything seemed to be really on the verge of success.
The problem is that recruitment and supply chain are the difficulties, and with the current situation of Jia Yueting and Faraday's future, these two points may not be easy to deal with. There are still 7 months to go before the delivery time promised by Jia Yueting, but Faraday Future still faces many problems, and the delivery of FF91 on schedule is probably only a luxury. If FF91 fails to deliver as scheduled in July this year, jia Yueting may really face a class action lawsuit.
Jia Yueting left China, leaving LeTV this mess, after several years of adjustment, a few days ago LeTV has officially announced the double balance of revenue and cash, to raise salaries for employees, the company is gradually back on track. Jia Yueting, who ran to the United States, relied on Faraday's future listing and raised a lot of funds, but after several years of profligacy, how much is left?