Boss Jia, that is, Jia Yueting, presumably everyone is no stranger, how many shareholders in China want to cry without tears, waiting for Boss Jia to create glory again and the return of the king...
Does Jia Yueting really have any hope of repaying China's debts?
01
Faraday will not be able to continue to go public and make money in the future
As early as 2004, Jia Yueting created LeTV, which attracted many shareholders to participate by creating a series of illusions.
As a result, by 2017, LeTV could not hold on, the collective thunderstorm, the capital chain was broken, the stock price and market value fell sharply, and there was no doubt that Jia Yueting owed a bunch of debts in China.
At this critical time, Jia Yueting disappeared and jumped to the United States, claiming that he would start a business again and repay China's debts.
But until now, Jia Yueting still has not returned to China.
How is Jia Yueting's car-making business in the United States developing now?
Three words to sum up is: not smooth.
Recently, Faraday Future, created by Jia Yueting, released information to the outside world that the company received a warning letter from NASDAQ because it did not submit an annual report for the previous fiscal year, did not meet the listing requirements, and could not continue to list for the time being.
At the same time, if the relevant information for the third quarter has not been submitted before May 6 this year, it will be notified of the delisting of the securities at that time.
The failure of the listing means that Jia Yueting failed to circle money in the United States, and there was no money to pay off the debt at that time.
Knowing the origin of the matter, I knew that in fact, before that, Jia Yueting had already received the relevant delisting warning, but at that time, Boss Jia used a move and gained more time to prepare.
At that time, Jia Yueting claimed to the outside world that the company had been maliciously shorted by the US agency, and at present, the company is concentrating on investigating this matter and waiting until there is a result before dealing with other matters.
02
Orders for 14,000 units were actually inflated
But after all, this is only a delaying strategy, the patience of the NASDAQ securities trading institutions in the United States is also limited, and now it will warn Faraday's future again, which should be regarded as an ultimatum.
Is it really that difficult to turn in a financial report?
In fact, it is not difficult, for any company, the external announcement of their own performance, but also to show to the shareholders, this is a responsible attitude.
Why is Jia Yueting reluctant to submit financial reports?
The root cause is that Faraday's future development is actually not smooth.
Previously, Jia Yueting had said that the company has obtained 14,000 orders from the market, and according to the plan, it will officially achieve mass production and put into the market in August this year.
In this way, Faraday's future development can also be regarded as smooth sailing.
You can see the actual situation, these 14,000 orders are actually false, and Faraday Future has only obtained orders for a few hundred cars.
This is clearly misleading consumers.
03
At least $1.3 billion is needed to achieve mass production of the car
Since Jia Yueting entered the United States to build cars, he has been suspected of cutting American leeks and repaying Chinese debts, and this suspicion has not been alleviated over time but has increased.
Because Jia Yueting, who has always claimed to have made progress, is actually not the case.
By the end of 2017, Faraday Future's factory in the United States was still very dilapidated, surrounded by weeds, and even the entire factory was empty, with no equipment and only one employee clocking in.
A year later, Jia Yueting came forward to say that the mass production time of the car will be delayed by one year, but in 2019, there is still no movement, and the time is now, and Daladi Future has just ushered in a little progress.
During February this year, Faraday's first production car was officially released, and the launch ceremony was announced through live broadcast.
Since the sample car has appeared, the next step must be mass production, put into the market, and obtain sales, and Boss Jia hopes to repay the debt?
It's obviously too early to draw conclusions, because there are still many uncertainties in the future.
We all know that Faraday Future has raised a total of $1.047 billion in previous rounds of financing, and combined with the company's announced expenses, there is currently only $767 million left.
The car industry has always been very expensive, and the 767 million US dollars of funds can only barely buy the equipment and parts used in car manufacturing, and it is impossible to achieve mass production.
According to the forecasts of professional agencies, at least $1.3 billion will be needed to achieve mass production.
Jia Yueting, who is already in debt, where will he get this money? This also means that whether the next step of mass production can be achieved is not certain.
What do you think about that?