In the turbulence of global trade, a sudden policy change can often rewrite the pattern of the industry and even the fate of individual enterprises. Recently, a piece of news that shook the industry once again confirmed this pattern - the U.S. government announced that it will significantly increase the tariff on electric vehicles exported to China from the original 25% to an unprecedented 100%. This decision was like a depth charge, stirring up a thousand waves, but it also unexpectedly put the once-troubled Faraday Future (FF) and its founder Jia Yueting in the spotlight.
In recent years, the trade relationship between China and the United States has experienced frequent fluctuations, and tariffs have become one of the important tools in the game between the two sides. Against this backdrop, the U.S. government has repeatedly adjusted its tariff policy on China in order to protect local industries and put pressure on competitors. As a key area for the transformation of the global automotive industry, electric vehicles have naturally become the focus of attention. The sharp increase in tariffs not only reflects the United States' concern about the rise of China's electric vehicle technology, but also seeks to limit the competitiveness of Chinese products by increasing cost pressures.
When it comes to Faraday Future, the name of its founder, Jia Yueting, is almost parallel to "legend" and "controversy". The Shanxi businessman, who single-handedly built the LeEco empire, has become a hot figure in China's business world due to a series of business ventures and financial difficulties. In 2017, Jia Yueting went to the United States to fully promote Faraday's future electric vehicle project, but the capital chain was broken and mass production problems followed, and FF seemed to be a difficult dream for Jia Yueting to realize. Just when the outside world generally believes that FF may follow in the footsteps of LeTV, the adjustment of US tariffs on electric vehicles in China has dramatically brought a turnaround.
After the U.S. government's tariff decision was announced, Faraday Future's stock price soared by 367.54% in one day, and the turnover rate reached an astonishing 3687.22%. The logic behind this phenomenon is not complicated: as the cost of exporting Chinese EVs to the U.S. has skyrocketed, the market is beginning to reassess the value of EV manufacturers that have a production base in the U.S. Faraday Future, as a U.S.-based company led by Chinese entrepreneurs, is at the cusp of this policy change.
For investors, Faraday Future's manufacturing capabilities in the U.S. mean it can circumvent high tariff barriers and compete directly in the U.S. EV market without the price disadvantage caused by tariffs. Therefore, even though Jia Yueting has experienced many twists and turns, the market's confidence in his company has been significantly strengthened by this change in the external environment, and the improvement of the financing environment seems to have become possible overnight.
Faraday Future's soaring share price has undoubtedly brought a ray of life to Jia Yueting and his team, but it does not mean that all problems are solved. First, there is uncertainty about the change in tariff policy, and the advantages enjoyed by FFs may quickly disappear in the event of a policy reversal or a new trade deal being reached. Secondly, the long-term development of enterprises still needs to rely on their own technological innovation, product competitiveness and supply chain management capabilities. For Faraday Future to truly gain a foothold, it must accelerate the implementation of its products and achieve large-scale production and sales to prove the sustainability of its business model.
In addition, for the entire electric vehicle industry, although such policy changes may be beneficial to some specific companies in the short term, in the long run, they may inhibit the collaboration and innovation of the global industrial chain, increase the burden on consumers, and be detrimental to the healthy development of the industry. Therefore, how to find a balance between protecting domestic industries and maintaining global free trade will be a common issue faced by governments and enterprises.
The story of Jia Yueting and Faraday Future's counterattack is a microcosm of the changes in the global trade environment, which not only shows the profound impact of policy changes on the business ecology, but also reminds us to pay attention to the survival wisdom of individual enterprises in the complex international situation. In the future, whether it is for FF or the entire electric vehicle industry, seizing opportunities, responding to challenges, continuous innovation and cooperation will be the key to success. For Jia Yueting, this may be another more difficult and uncertain journey in addition to his promise to "return to China next week".