FF "stepping on the point" to deliver Q3 financial report, how many points can the Flag that delivers the car on time believe?

【Lieyun Network Beijing】Reported on May 8 (Text/Gaosi)

Jia Yueting's Weibo dynamics have finally been updated, in addition to the IP show that Beijing has made a "fake return to China" oolong, Faraday Future's belated third quarter 2021 results are obviously more interested in public opinion.

On May 6, FF released its financial results for the third quarter of 2021, and as of September 30, 2021, FF's operating expenses for the third quarter were $186 million, compared to $18 million in the same period last year. Officials explained that operating expenses increased significantly, mainly due to increased investment at the Hanford manufacturing plant in California, in preparation for full commercial production.

As of September 30, 2021, FF's cash and cash equivalents balance was $666 million. Cash balance as of March 31, 2022 was $276 million, including planned repayments of $97 million in notes and accrued interest.

This financial report, which should have been released last year, once let FF suffer a "delisting warning". The release of the financial report was also considered by FF Global CEO Bi Fukang to be an "important step towards restoring normal submission status" to FF, and Jia Yueting also said that it was "one step closer to realizing the original vision." ”

According to the plan, FF will hold a conference call open to foreign investors after submitting its first quarter results for 2022 in mid-May. At the same time, FF once again reiterated the delivery time and expressed confidence in delivering FF 91 in the third quarter of this year.

Everything seems to be moving in a good direction, but the nightmare of two meltdowns of Faraday Future stock price is still there, and Jia Yueting has also been dismissed from the company's executive position. In addition, ticket jumping has become the norm for this enterprise, people have become accustomed to not holding any expectations, FF and Jia Yueting have a chance to be shamed before the snow?

The net loss of more than $300 million is still in large areas of recruitment

Previously, FF failed to submit the 2021 financial report on time, and on April 4, it had received a regulatory letter from NASDAQ, and if the required documents were not submitted before May 6, the company may receive a delisting notice, which is why FF would choose to issue a performance report on May 6.

FF's net loss for the third quarter ended September 30, 2021 was $304 million, compared to a net loss of $33 million for the same period last year, and the loss continued to widen.

Prior to this, as of the first half of 2021, the full year of 2020 and the full year of 2019, FF had net losses of $128.3 million, $147.1 million and $142.2 million, respectively. Cumulative losses were $2,519.4 million, $2,391.1 million and $2,244.1 million, respectively, and net cash used from operating activities was $52.3 million, $41.2 million and $189.8 million, respectively. FF's working capital deficits were $775.9 million, $835.3 million and $688.2 million, respectively.

At present, the cumulative loss of FF has exceeded 10 billion, and in the foreseeable future, there will still be significant operating losses.

Although the losses continue, the pace of recruitment has not stopped.

According to the financial report, in the third quarter, FF hired Matt Tall as vice president of manufacturing, responsible for leading all aspects of FF production and manufacturing, and Liu Yuchao was hired as senior vice president of supply chain for FF China. He will help FF drive the production and delivery of FF 91.

In addition, new leadership members were hired, including senior directors of energy storage and charging; heads of software engineering, ADAS and autonomous driving; and heads of vehicle quality.

According to the earnings report, FF has officially signed a contract with South Korea-based automaker Myoung Shin Co., Ltd. to build Faraday Future's second car, the FF 81, which is scheduled for the 2024 SOP.

In the earnings report, Bi Fukang talked about the previous investigation of the company by the special committee, saying that the board of directors accepted the results of the investigation and the implementation of remedial measures is proceeding smoothly. "I believe this review and the changes we make will help us build a stronger, better company."

According to the plan, FF will deliver FF 91 in the third quarter of this year, Bi Fukang said that the current Hanford manufacturing plant construction has made great progress, the production area construction is advancing as planned, achieving the first four milestones to SOP, confident of delivery as planned.

The Hanford manufacturing facility covers approximately 1.1 million square feet and is expected to have the capacity to support the production of 10,000 cars per year when completed. FF said it has officially obtained the permit for the pre-production dedicated area of the Hanford manufacturing plant, which also means that FF has been allowed to carry out key construction activities, including the manufacture of more quasi-production vehicles at the factory.

As of March 31, 2022, FF car bookings were 401 units. Currently, when booking FF 91 Futurist Alliance, U.S. users pay a $5,000 deposit and Chinese users pay a $50,000 deposit. When booking FF 91 Futurist, a deposit of $1500 is required for U.S. users and a $20,000 deposit for Chinese users.

In addition, the earnings report also announced plans to cooperate with Qmerit, which is the largest supplier of electric vehicle charging network installation in the United States. FF has partnered with Qmerit to meet the home charging needs of future FF 91 users and other future energy-related installation services.

The expression of FF in the financial report is all thriving, but returning to the essence of the FF problem does not give people a convincing reason.

"De-Jiahua" is difficult to save FF

From "returning home next week" to being hesitant to submit financial reports, FF and Jia Yueting are always challenging people's bottom line, which is also difficult to expect from their commitments.

In October last year, J Capital Research, a SHORT-selling agency in the United States, released a short selling report on FF, a 28-page report that expressed doubts about FF from various angles such as FF's production capacity, R&D investment status and the penalties suffered by Jia Yueting. Finally, a conclusion was reached: FF could not sell a single car in the end.

Although Jia Yueting should be shorting the report is cold rice and hot frying, the short report page tore off the last fig leaf of FF.

In February, Faraday's Future Task Commission called the short-selling report untrue, but acknowledged that the company's previously posted bookings for more than 14,000 FF 91 vehicles were "misleading" because only a few hundred of them had been paid for. To this end, Faraday Future, at the request of the board of directors, demoted or suspended a number of responsible persons and also reduced management salaries.

A month later, FF filed with the U.S. Securities Commission showing that FF admitted that some members of the company's management team had received preservation notices and subpoenas from U.S. Securities and Exchange Commission (SEC) staff, and that faraday Future was investigated for allegedly releasing inaccurate information to investors.

In the left-right swaying argument, the credibility of FF and Jia Yueting has been declining, which has also made it completely unconvincing in the capital market.

On April 26, FF quickly dived after resuming trading, triggering a circuit breaker suspension twice, falling more than 40% intraday and evaporating hundreds of millions of dollars in market value.

The growth path of the review of FF, which was listed on the NASDAQ in July last year, can be said to be an important milestone in the reversal, but faraday's future of "diseased listing" did not start a counterattack trend, with an issue price of $13.78 / ADS, opening at $16.8 / ADS, up 22% from the issue price, and the total opening market value reached $5.4 billion.

The listing has become the peak of FF, after experiencing continuous diving and slippage, as of press time, Faraday Future's stock price is only $2.37, and the total market value is only $769 million, compared with the opening, a decline of more than 80%.

Before the listing, FF ambitiously talked about the global development plan, but also planned to build a factory in China, last March officially announced that FF China CEO set up a Chinese team, and rumors that Zhuhai and Geely will participate in the listing financial financing, but the facts turn out to be a false shot.

Moreover, Jia Yueting's history of untrustworthiness and the punishment of permanently banning entry into the securities market have obviously made the development of FF in China encounter no small resistance. Therefore, in the external expression of FF, it deliberately "de-Jia".

In fact, even without Jia Yueting's label, the development of FF still encounters no small doubts.

According to the report of J Capital Research, the existing technical level of FF is not enough to support the mass production of FF 91, and because FF has previously defaulted on supplier payment, suppliers have withdrawn from cooperation, even if they can supply, they must pay the full amount, which will undoubtedly cause huge pressure on FF who is short of money.

In addition, the development of the electric vehicle market is changing rapidly, whether it is a new force car company or a traditional car company, in terms of hardware configuration, it has begun to roll up.

High cooperation for the same positioning of high-end new forces car companies, has a certain fan base, and Weilai, Xiaopeng and other car companies have begun to use lidar, other car companies for intelligent driving function, or self-research or find strong third-party cooperation, have a lot of intelligent driving capabilities.

FF is obviously up early in the morning to catch up with the late set, some netizens said that the design and function of FF 91, put to today has become obsolete.

In order to avoid falling behind in terms of software and hardware, Jia Yueting and Bi Fukang have always emphasized that FF91 is constantly iteratively upgrading. "We are confident that the FF 91 will be the first leader to enter the luxury electric vehicle market, and FF will redefine the most advanced intelligent electric vehicle."