On February 2, Beijing time, electric vehicle startup Faraday Future (NASDAQ: FFIE) announced on Tuesday that a special committee of the company's board of directors has completed a previously announced investigation into allegations of inaccurate disclosure, including allegations in a short-selling report last October. Faraday Future said that because of certain deficiencies in the company's control and culture, former FF chairman Brian Krolicki has stepped down and Susan Swenson has taken over as executive chairman.
In October 2021, J Capital Research, a U.S. short-selling agency, released a 28-page short-selling report. According to the report, through on-site visits and research, analysis of the company's financial report data and technical capabilities, and combined with a series of post-IPO capital operations, faraday Future is an "emerging electric vehicle scam" and will never be able to sell a car. Then, the U.S. law firm Block & Leviton launched an investigation into Faraday Future, arguing that the company may have violated U.S. securities laws and regulations, and filed a class action lawsuit calling on investors who suffered losses from trading the company's shares to join the lawsuit.
Faraday Future said Tuesday that the special committee, assisted by independent counsel Kirkland & Ellis LLP and forensic accounting firm Alvarez & Marsal, had concluded that the special committee had indeed found certain inconsistencies in statements addressed to investors and certain weaknesses in the company's controls and culture. In addition, other substantive allegations of inaccurate disclosures assessed by the Special Committee, including those in the reports of short sellers, were not supported by the evidence reviewed. To be honest, seeing Jia Yueting's Faraday Future car facing such a large-scale market pressure, how should we look at this matter?
First of all, from the perspective of the entire market, the pressure on Jia Yueting is undoubtedly very huge, after all, for the current entire new energy vehicle market, there are already so many automobile manufacturers who have been able to produce cars, many of which have started more than Faraday Future and play a lot of companies, these companies are able to produce cars, and have achieved good sales, Jia Yueting has never given the capital market a satisfactory account, which is undoubtedly a very big problem, from the current point of view to produce new energy vehicles, In fact, it is not a very difficult thing, the current difficulty of producing new energy vehicles is decreasing, it can be said that the new city new energy vehicles and the production of mobile phones in the same year, easy in such a background situation, Jia Yueting has never produced products, which is actually very easy to make everyone feel very confused.
Secondly, from the current situation, what Jia Yueting needs to do most is to hurry up and seize the time to produce car products, in fact, it is not necessarily to say how well this car sells, at least you have to produce products to the capital market, with confidence to tell the capital market, your product can at least be produced, rather than as dead as now can not produce things, this is Jia Yueting's biggest problem at present. And the longer this time drags on, the more Jia Yueting can't produce something, in fact, the greater the impact on the entire market, and the more the market will suspect Jia Yueting.
Third, from the perspective of the long-term development of the entire market, what Jia Yueting needs to do most at present may not be to say that the salary cut is so simple, but how to really boost the confidence of the entire market, the capital market wants expectations, if Jia Yueting can not give expectations, then the problem will be very serious. I have to say that at this stage, many people are already skeptical, and if this skepticism is allowed to spread, it will have a very great pressure on the entire listed company.