After "Wei Xiaoli", FF leveraged the take-off of the Chinese market or the biggest attraction in 2022

After the booming Chinese new energy market has nurtured the new car-making force Wei Xiaoli, Faraday Future (FF), which is expected to be mass-produced and delivered in July this year, is also waiting for the national policy to take off.

A few days ago, the relevant departments of the state intensively issued policies related to new energy vehicles. The State Council issued the "14th Five-Year Plan for the Development of Modern Comprehensive Transportation System"; the National Development and Reform Commission and other seven departments issued the "Implementation Plan for Promoting Green Consumption"; the Ministry of Industry and Information Technology held the 2022 Annual Work Conference of the Inter-ministerial Joint Conference on Energy Conservation and New Energy Vehicle Industry Development, which analyzed the development status of China's new energy vehicles and deployed the key work of the new energy automobile industry in 2022; the Ministry of Transport issued the "14th Five-Year Development Plan for Green Transportation". It is proposed to accelerate the promotion and application of new energy and clean energy transportation equipment.

Industry analysts believe that from the perspective of frequently introduced policies, the state's policy support and guidance for new energy vehicles is being strengthened, and it has entered the intermediate stage of new energy vehicle infrastructure construction, which can be said to have ushered in a wave of extremely favorable policies for FF that mass-produced and delivered FF 91 in July this year, and it is very likely to usher in a highlight moment in 2022.

The Chinese market has nurtured new car-making forces

According to the data of the new energy market in 2021, the annual delivery volume of the three musketeers Weilai, Xiaopeng and Ideal, the head of the new car-making forces, exceeded 90,000 vehicles.

Among them, the total delivery volume of Xiaopeng Automobile in the whole year reached 98,155 units, 3.6 times that of 2020, and the sales volume exceeded 10,000 for four consecutive months. After experiencing the tragic moments of 2019 and the blessing of Hefei in 2020, WEILAI delivered 91,429 units in 2021; the ideal car of the ideal ONE car delivered a total of 90,491 units last year.

One of the most noteworthy is Weilai. This new force, which was almost swallowed up by the new energy vehicle market in 2019, ushered in a turnaround after being endorsed by the Hefei government.

On October 2, 2019, NIO's stock price hit a historic low of $1.19 and looked shaky. In April and May 2019, WEILAI ES8 had three spontaneous combustion incidents across the country, due to defects in the internal routing direction of the power battery module, short circuits caused by fire, and NIO recalled 4803 ES8 replacement batteries at one time. This move made its reputation instantly fall to the bottom.

It is worth saying that the recall directly generated 339 million expenses, which further aggravated weilai's losses. According to the financial report of the second quarter of 2019, NIO's net assets were only 456 million yuan. On October 2, NIO's stock price fell to $1.19, and since then the stock has hovered around $1 for many days, and the delisting has continued.

Weilai, which is on the verge of dying, the Chinese market saved it. In April 2020, the financing of 7 billion yuan from the national team capital such as Hefei Construction Investment Holding (Group) Co., Ltd. was finally implemented, and the cash flow pressure under weilai's huge loss was temporarily alleviated. After that, Weilai received tens of billions of funds. On July 10, NIO reached a strategic cooperation with six banks, which will provide NIO with a comprehensive credit facility of 10.4 billion yuan to support the operation and development of NIO's business.

With the help of the Chinese government and capital, NIO survived. Now, NIO's share price has climbed to $30 per share, with a market capitalization of $47.7 billion. Weilai's story tells the new energy market that only the Chinese market is the cradle of new car-making forces.

The key to FF's take-off is to land in China

In the global new energy market in 2021, China is thriving. This trend will continue in 2022.

According to the statistical analysis of the China Association of Automobile Manufacturers, China's automobile production and sales showed year-on-year growth in 2021, ending the decline for three consecutive years since 2018. Among them, new energy vehicles became the biggest bright spot, with annual sales of more than 3.5 million units, an increase of 157.5% year-on-year.

Cui Dongshu, secretary general of the China Association of Passenger Vehicles, judged that with the significant increase in domestic consumers' recognition of the new energy market and the stability of policy subsidies, it will inevitably promote the total sales of New Energy Vehicles in China in 2022 and continue to maintain the leading position of more than 50% of the world's super share. According to the latest data, the sales of new energy passenger cars in 2022 were originally expected to be 4.8 million units, but they have now been adjusted to more than 5.5 million units, and it is very likely that sales will exceed 6 million units.

As a pioneer in the new energy market, FF got up early but rushed to a late set. However, in the eyes of the market, FF, which has the dual genes and dual home advantages of China and the United States, the key to the future take-off must be in the Chinese market. In the industry's view, after the rapid development of China's new energy industry in recent years, it has built a global competitive advantage in terms of supply chain and user consumption group, which will be a great benefit for FF landing in China. Moreover, with the trend of new domestic car-making forces and traditional car companies continuing to increase the high-end market in 2022 (as of August 2021, the penetration rate of models above 250,000 yuan + in The Model 3/Y and independent new forces will reach 22%), it will help FF 91, which is positioned as a luxury of Jizhi Technology, to obtain more high-end consumer groups.

In the Chinese landing business that investors are most concerned about, FF China has built a globally integrated team in 2021, attracted outstanding talents from GM, Ford, Tesla and other companies to join, completed the user-centered enterprise construction, successfully held the "919 Futurist Co-creation Festival", and made very significant progress in negotiations with local governments, providing great help for the mass production and delivery of FF 91 in the Internet of Vehicles, the third Internet space, smart cockpit, supply chain, and brand building.

Therefore, for FF, the main work of FF at this stage in addition to the mass production and delivery of FF 91 in July this year, the second important work is to land in China. Only by making a business breakthrough in the Chinese market can the development of FF take off and be recognized by the capital market like Weilai, Xiaopeng and Ideal.