Jia Yueting resigned as CEO when FF was reorganized in 2019, but to this day Jia Yueting is still the actual controller of FF, staging a good scene of listening to the government.
Wen 丨BT Finance Dream Xiao
Jia Yueting, who is the most capable of PPT in China, stayed in the United States for a long time after the collapse of domestic people, but this time Jia Yueting and his FF (Faraday Future) were planted again. This time he was planted in the hands of his own company.
The FF Independent Directors Special Committee completed a previously announced investigation into allegations of inaccurate disclosure, which found that there was a significant amount of fraud in the company's 14,000 orders, with only a few hundred actually paid for.
The FF Committee's investigation found that the FF act was misleading. After Jia Yueting's "China scam" was exposed, his "American scam" was about to be punctured.
Jia Yueting "hanging the curtain to listen to the government"?
FF also played a word game in the announcement of the findings, "there are certain inconsistencies in the company's investor statements and certain weaknesses in the company's control and culture." "Up to this point FF has not acknowledged their fraud, only admitting that there were inconsistencies in their orders," and the 14,000 bookings for FF 91 vehicles can be misleading. "This is the closest FF can come to admitting fraud.
Some insiders believe that the "certain weaknesses" announced by FF are directly directed at Jia Yueting. After the LeTV thunderstorm in 2017, Jia Yueting went to the United States and did not return, leaving a large number of debts, and he himself was also listed as a lao lai by the court. But in the United States, Jia Yueting is not idle, as the CEO of FF, but relying on the position of FF CEO that salary is simply unable to repay the debt, the only valuable is the shares in jia Yueting's hands, once the FF listing is successful, these shares will be worth a lot, and if the listing fails, it will be almost waste paper. Jia Yueting successfully launched the partnership system in order to go public as soon as possible, and restructured Faraday Future.
It is undeniable that for a long time, FF was a company with Jia Yueting's personal brand. Even if LeTV thunderstorms, Jia Yueting has long been labeled as a "liar", and there are still many people who believe in him and believe that FF can build a car. He even managed to fool two investors, Evergrande Xu Jiayin and Jiucheng Zhu Jun. This may be the magic of Jia Yueting. However, after the breakdown of cooperation with Xu Jiayin, the effect played by Jia Yueting on behalf of the company gradually became negative, and more and more FF news on the market wanted to cut with him. Everything that the public does to Jia Yueting is treated with colored glasses, which also brings inevitable trouble to Jia Yueting.
In this statement, although it did not admit Jia Yueting's fraudulent behavior, it bluntly said that there were "inconsistencies" and some weaknesses in the company, and this "certain weakness" obviously refers to Jia Yueting's control over FF, it is said that Jia Yueting has resigned as CEO when FF was reorganized in 2019, only retaining the so-called chief product & user experience officer and other virtual positions, but to this day Jia Yueting is still the actual controller of FF, Jia Yueting staged a good scene of listening to the government, and in front of the stage is his nephew Wang Jiawei, He is also the Vice President of Global Capital Markets at FF.
Jia Yueting's resignation reasonably exploited some loopholes in the partnership system. After he resigned as CEO, control of the company was not completely handed over to his successor, Bi Fukang, but to a "partner committee" that made decisions. While other committee members, the current CEO is difficult to control, which is equivalent to Jia Yueting still controlling FF in disguise. Investor Liu Zhigang also believes that Jia Yueting is currently in FF to listen to the government.
But the final filing of the investigation also highlights that other allegations facing FF, including a short report by J Capital Research, a previous short-selling agency, have not been supported. But for the 14,000 orders with only a few hundred vehicles to pay for, the investigation admitted that this may be misleading, almost confirming that Jia Yueting once again "cheated" successfully.
Jia Yueting's credit influences financing
FF For Jia Yueting, like his own "child", it is his last "life-saving straw", and resigning as CEO is forced.
An FF insider once told the media: "Jia Yueting's credit affects financing. He resigned as CEO so that the company could survive. "Car-making projects are very expensive, especially new energy vehicles, Weilai burned 28 billion yuan in 4 years, and FF obviously does not have such a strong financing ability at present, because of Jia Yueting's credit stain, many investors have no confidence in him, which directly affects FF's financing ability, but also affects and restricts the development of FF, if Jia Yueting does not resign, FF will be difficult, and finally can only die."
It is understood that since the Thunderstorm of LeTV in November 2016, in about five years, Jia Yueting has repaid some of his debts by selling assets and selling equity in order to wash away the credit stains on his body, according to the announcement issued by FF, the debt repaid has reached 3 billion US dollars, which is about 20 billion yuan, and the total amount of LeTV Thunderstorm is more than 35 billion yuan, that is to say, Jia Yueting is still in debt of more than 15 billion yuan.
After becoming a dishonest person in China, Jia Yueting still won the support of some entrepreneurs, such as his Shanxi compatriot Sun Hongbin, who helped Jia Yueting with 15 billion yuan when he was in distress. And when his credibility fell to a low point, Evergrande boss Xu Jiayin also hit it off with his car-making dream, and did not hesitate to throw heavy money. At that time, if Jia Yueting could seize the opportunity, he might have delivered FF mass production now, and Evergrande might not have been miserable in recent days. Once successful, Jia Yueting can not only completely wash away its negativity, but may even stage the "return of the king".
But Jia Yueting failed to seize the opportunity, and the root cause still appeared in money. In June 2018, Xu Jiayin spent 6.7 billion yuan to become the largest shareholder of FF, holding up to 45% of the shares. According to the agreement, Xu Jiayin also needs to pay FF $800 million by the end of 2018, $600 million in 2019, and $600 million in 2020. This money was not too much for Xu Jiayin, who was full of vigor and unlimited scenery at that time, and it was completely within the range of affordability. Judging from LeTV's debt situation at that time, the three-in-three payment of $2 billion was enough for Jia Yueting to repay the remaining debt.
The pair, which seemed like a match made in heaven, quickly cracked. On May 25, 2018, Xu Jiayin paid the first payment of $800 million in advance, which should have been paid before the end of the year. However, in July, Jia Yueting proposed that 800 million US dollars had been basically used up, and asked for another 700 million US dollars to be paid in advance. At this time, it was less than two months since Xu Jiayin's first payment of $800 million. Xu Jiayin agreed to pay $700 million, but added additional conditions, these conditions are believed by Jia Yueting to be Xu Jiayin to seek control of FF, at this time FF is Jia Yueting's only life-saving straw, he does not want to lose and is not willing to give up, in this way, in October of that year, the two completely broke up, even at the expense of the court, at this time Jia Yueting's personal credit fell to a low point.
At present, Jia Yueting, who is currently restricted, pins his hopes on FF to repay his debts, and the premise of repaying debts is that FF can operate normally, and if he continues to serve as CEO, it will be difficult to realize his car-making dream and the possibility of debt repayment. After Jia Yueting resigns as CEO, it will help him to establish a debt repayment trust fund, and it will be possible to completely solve the problem of his personal remaining guarantee debt and remove the identity of "Lao Lai". In this way, resigning as CEO is a win-win situation after Jia Yueting's careful consideration, which can not only retain the hope of repaying his debts, but also not let FF encounter financing difficulties and go bankrupt.
On October 7, 2021, the US short-selling agency J Capital Researc released a report saying that from the consideration of FF's research and development investment, production capacity, capital operation, etc., combined with Jia Yueting's own credibility problems, they believe that FF cannot sell a car. According to the company's survey of its Hanford, California, plant and other facilities, they believe that FF91 is still $1.4 billion away from mass production deliveries, while J Capital Researc insists that no investment institution will provide FF with funding and loan support. Although Jia Yueting responded on the second day of the release of the short report as "cold rice hot fried, nonsense", it still pushed it and FF to the cusp of the storm.
FF dreams shattered?
For the short claim, if only Jia Yueting responded, the FF at this time should have been mass-produced and delivered. FF was listed on the NASDAQ on July 22, 2021 through a Special Purpose Acquisition (SPAC). The issue price was $13.78, but opened at $16.8, up more than 20%. At the stock price at the time, FF's total market capitalization was as high as $5.4 billion. At that time, Jia Yueting publicly stated that "the FF listing is to solve the biggest financial problem, and it will be mass-produced and delivered in 12 months." "But today, nearly July has passed, and mass production is still far away.
Jia Yueting thought that the listing would solve their financial problems, but what he did not expect was that the starting point of the FF listing was also his highest point, and the stock price of FF has been falling non-stop since that day. The starting point for the stock price is almost the highest point it currently has in the stock market. As of February 12, 2022, FF has fallen from $14.42 per share on the day of listing to $4.680, and its total market value has also fallen to $1.518 billion. The total market capitalization evaporated by 72%.
The introduction of this investigation report directly confirms the authenticity of the previous short report. In the short report, one of the orders for FF was explicitly raised, the large order volume announced by FF in January 2021. Short-selling companies believe that these order volumes are false, and they found through the survey that 78% of these orders come from the same company, which is not only unreasonable, but also does not conform to the laws of the market, and they suspect that this company may be a subsidiary of FF. And FF can't prove that the company has nothing to do with them. Almost acquiescing to the accusations of short-selling companies, once the allegations are true, then these large orders of FF are all "brush orders" played by themselves and themselves, left hand to right hand, not real orders at all, not real consumers.
Once the results of FF's investigation were announced, Jia Yueting once again encountered a credit crisis, and this time it was more violent than the previous times, and some insiders said that this time almost buried Jia Yueting's dream of building a car. FF, which was originally at the forefront of car manufacturing, has now been far away from the three new domestic car-making forces. The mass production of new cars is far away, and Weilai, Ideal and Xiaopeng have ranked in the top three of domestic domestic new energy vehicles. In January 2022, Xiaopeng's monthly sales were 12,922 vehicles, the ideal monthly sales were 12,268 vehicles, and the slightly high-end Weilai also reached 9,652 vehicles, and FF91 has not sold a single one so far.
The capital market has now also expressed its trust in Weilai, Ideal and Xiaopeng, which is different from the continuous decline in FF's stock price. As of February 12, NIO's share price was $24.69 with a total market capitalization of $39.29 billion; the ideal share price was $28.42 with a total market capitalization of $29.35 billion; and Xiaopeng's share price was $37.92, with a total market capitalization of $32.47 billion.
On the day of the listing, NIO is estimated to be $6.6, with a total market value of $6.2 billion; the ideal listing day is $16.46, with a total market value of $9.724 billion, and the Xiaopeng stock price on the day of listing is $21.22, with a total market value of $15.59 billion, as of February 12, 2022, WEIO's stock price has soared by 274%, the ideal stock price has risen by 73%, and the Xiaopeng stock price has risen by 79%. In the case of the new energy automobile industry is optimistic, FF's stock price has plummeted by 68%. The decline of the capital market may be related to Jia Yueting's credit bankruptcy.
"Because FF is a fake US listed company, it is bound to comply with US laws, and fraudulent data fraud like this will inevitably harm the interests of shareholders, and even violate local laws in the United States, Jia Yueting's trouble is not small." It is very likely that you will be imprisoned. A legal person said.
Jia Yueting in 2007 to 2016, there have been up to 10 years of financial fraud and was fined 241 million yuan of previous convictions, this time regardless of whether the FF's order is ultimately fake, will leave investors with the impression that Jia Yueting's nature is difficult to change, whether Jia Yueting is the actual controller of FF, FF is difficult to raise funds from the capital market, Jia Yueting King's return of the car dream is almost broken.
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