Author 丨Du Qiaomei
Editor 丨 Zhang Mingyan
Figure Source 丨 Figure worm
Jia Yueting's car-making business has once again encountered a crisis.
On March 31, local time, Faraday Future Intelligent Electric Inc. (hereinafter referred to as "FF" or "Faraday Future", NASDAQ: FFIE) announced that some members of the company's management team and employees were summoned by the U.S. Securities and Exchange Commission (hereinafter referred to as "SEC") for allegedly releasing inaccurate information to investors, and the company is fully cooperating with the SEC investigation.
At the same time, the filing of the 10-Q quarterly report as of September 30, 2021 and the 10-K annual report for the year ended 31 December 2021 were delayed due to delays caused by the internal investigation.
FF said the investigation was related to the company's internal investigation. In February, FF found in an internal investigation that the company issued some inaccurate statements to investors, exaggerating the number of reservations for its upcoming vehicle, the FF 91. The survey found that of the 14,000 FF 91 orders, only a few hundred orders had been paid.
"The reservation form issued by the company includes two types of paid bookings and free bookings, of which the company collects more than 14,000 FF 91 bookings, which has the information of all booking users, and this part is free booking data; and the company's public announcement of the global 300 invitation system limited edition FF 91, this part is a paid booking form." FF further explained it to the outside world after the release of the investigation report.
To this end, Wang Jiawei, vice president of FF's global capital markets, was suspended, and CEO Carsten Breitfield and founder Jia Yueting cut their basic salaries by 25%.
It is worth noting that if the relevant financial report is postponed again, FF may face the risk of delisting.
On March 15 this year, FF issued an announcement that the company received a letter from NASDAQ on March 9 allowing FF common shares and warrants to continue to be listed on the NASDAQ global select market, but the company must submit its quarterly report for 10-Q as of September 30, 2021 and its annual report for 10-K as of December 31, 2021 by May 6, 2022, which will result in the company's delisting if not submitted.
According to the data, FF was founded in April 2014 by Jia Yueting and others in California, USA. In July 2021, Faraday Future listed on the NASDAQ through the acquisition of SPAC.
In terms of products, on February 9, FF signed a contract with South Korean automaker Myoung Shin Co., Ltd. to start production of (SOP) FF's second electric model, FF81, in 2024; on February 24, the quasi-production car of its first model, FF 91, has officially rolled off the production line, and according to the plan, the model will be officially mass-produced in the third quarter of this year.
As of the close of the US stock market on April 1, FF's stock price fell to $4.91 per share, down 65% from $13.98 per share on the first day of listing.
However, FF said it is working to complete and file Forms 10-Q and 10-K for the third quarter as soon as practicable, with both forms expected to be submitted on or before the May 6, 2022 deadline.
Editor of this issue: Peipei Jiang, Intern Huang Jingshan
