On Tuesday, U.S. stock Faraday Future plunged quickly after resuming trading, triggering a circuit breaker suspension twice, falling more than 40% intraday. By the close, Faraday Future was down 12.92 percent to close at $3.1. As of the US stock market, Faraday Future fell another 11.61%.
On the morning of July 22, 2021, US time, Faraday Future was officially listed on the NASDAQ exchange in the United States and held a bell-ringing ceremony, with the stock code "FFIE" began official public trading, FFIE's issue price was $13.78, the first day of the closing report rose 1.45%, closed at $13.98, the total market value of $4.535 billion. However, as of the latest day's close, FF's share price has fallen by more than 80%, and the current total market value is only $1.006 billion.
Faraday's successful listing in the future is the first step for Jia Yueting to achieve a reversal, but the doubts surrounding Faraday Future and Jia Yueting have not decreased since the listing. On October 7, US time, the US short-selling agency J Capital Research released a short selling report on FF companies, the report has 28 pages, from the FF company's production capacity, capital operation performance, research and development investment and Jia Yueting's own punishment in China and other angles to express its doubts about FF company, sources include field research visits, company financial report data and public information, etc., from all aspects of the FNIE car-making ability expressed doubts, And listed a series of a series of 10 small items, including: embezzlement of public funds, factory delays, false orders, etc., and bluntly said that "FF can not sell a car."
In early February, a special committee of Faraday Future's independent board said there was no evidence to support the previous short-selling report of J Capital Research, but admitted that only a few hundred people paid out of Faraday's 14,000 orders, a statement that misled investors. To that end, At the request of the Board of Directors, Faraday Future demoted or suspended several responsible persons, cut the base salaries of CEO Carsten Breitfield and founder Jia Yueting, and required them to report to the newly appointed executive chairman of the board, Susan Swenson.
In March, in FF's filing with the U.S. Securities Commission, Faraday Future Auto admitted that certain members of the company's management team and company employees had received assurance notices and subpoenas from U.S. SEC staff for allegedly releasing inaccurate information to investors. Faraday Future said it is currently fully cooperating with the SEC's investigation. From the current point of view, the incident may have been investigated to the end. This time, the responsible person was adjusted for the first time in the future. In February, a special committee of Faraday Future's independent board admitted that only a few hundred people had paid for Faraday's 14,000 orders, misleading investors. Subsequently, several of Faraday's future responsible persons were demoted or suspended. Faraday's un-CEOs Bi Fukang and Jia Yueting will both reduce their annual base salaries by 25%.
On April 14, according to documents released by the U.S. Securities and Exchange Commission, the board of directors of Faraday Future (Faraday Future) has adjusted the position of founder Jia Yueting, who will no longer serve as CEO and retain his position as chief product officer and will continue to report to the executive chairman.
In addition, Faraday Future is already in business difficulties. For the full year 2020 and 2019, FF had net losses of $147.1 million and $142.2 million, with cumulative losses of $2,391.1 million and $2,244.1 million, respectively, net cash used from operating activities of $41.2 million and $189.8 million, and FF's working capital deficits of $835.3 million and $688.2 million, respectively. According to Securities Daily, FF expects an operating loss of $345 million to $385 million for the year ended December 31, 2021, and a net loss of $510 million to $550 million in 2021, an increase of 247% year-on-year.
For the increase in operating and net profit losses, FF explained that this was mainly due to the full commercial production of the company's plant in Hanford, California, increased costs, increased costs for developing and producing future electric vehicle models, additional accrued costs of litigation and losses related to the disposal of certain FF91 plan assets (mainly supplier tools, machinery and equipment).
More seriously, Faraday Future has the possibility of being forced to delist, and there is not much time left for Faraday's future. Previously, FF had received a regulatory letter from NASDAQ on April 4 for failing to submit its 2021 financial report (Form 10-K) on time, and if it did not submit the required documents by May 6, the company may receive a delisting notice. FF revealed that it is currently not expected to be able to file its annual report for the end of December 2021 by the deadline and will require more time to complete additional investigative work, implement additional appropriate remedial actions, and finalize the Company's financial statements and related disclosures, including the Company's third quarter financial report as of September 30, 2021.
FF came with questions at the beginning of the listing, "Suffocate for dreams or tell stories?" Today, this problem is once again in front of FF.
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