Biden is making trouble, Jia Yueting is profitable? FF's stock price soared 2000% in 5 days, and he said that "he can help his Chinese counterparts"

National Business Daily

2024-05-18 13:37Published on the official account of Sichuan Daily Economic News

Jia Yueting is taking off again?

On May 17, local time, Faraday Future (FF) stock price soared, once rising to $3.87, an increase of more than 130%. Since then, it has begun to fall in a straight line, turning down 37.58% to close at $1.03, with a total market capitalization of $43.95 million. At the opening of trading on Monday (May 13), its stock price was only $0.048, with a total market capitalization of less than $3 million. In other words, Faraday's stock price has skyrocketed by more than 20 times in the next 5 days, and the highest increase once exceeded 80 times.

On May 14, the Biden administration announced that it would impose a fourfold tariff on Chinese imports of electric vehicles, and the tax rate would be increased from 25% to 100%. On the same day, Faraday Future's stock price soared 367%. It is reported that Faraday Future is the only Chinese background electric vehicle concept stock developed in the United States, and it may also be the only Chinese concept stock of electric vehicles that will not be affected by the ban, so it may generate huge space for the imagination of merger and acquisition value and attract speculation from tourists.

Jia Yueting said in a video about the matter that more and more people are aware of Faraday Future's uniqueness as a bridge between the Chinese and American automotive industries, as well as many unique values. Jia Yueting said that on the premise of complying with relevant U.S. laws and regulations, Faraday Future can help car companies and supply chains quickly enter the U.S. market, reduce trial and error and time costs, and hope to have the opportunity to cooperate with Chinese car companies.

U.S. Announces 100% Tariff on Chinese EVs

Expert: The impact is manageable

According to Xinhua News Agency, on May 14, the United States released the results of the four-year review of the additional Section 301 tariffs on China, announcing that on the basis of the original Section 301 tariffs on China, it will further increase the tariffs on electric vehicles, lithium batteries, photovoltaic cells, critical minerals, semiconductors, steel and aluminum, port cranes, personal protective equipment and other products imported from China.

Specifically, the United States will increase the number of photovoltaic cells used to make solar modules from 25% to 50%; increase tariffs on electric vehicles from 25% to 100%; Tariffs on lithium-ion electric vehicle batteries and other battery components increased from 7.5% to 25%; Tariffs on "some" critical minerals have been raised from zero to 25%. The U.S. tariffs on Chinese goods cover a wide range of areas and will be in effect from 2024 to 2026.

The aggressive move by the United States to impose tariffs comes against the backdrop of a sharp increase in China's auto exports. In 2023, China's auto exports will surpass Japan's and become the world's largest auto exporter. According to the data of the General Administration of Customs compiled by the China Association of Automobile Manufacturers, in the first quarter of this year, the mainland exported 455,000 new energy vehicles, a year-on-year increase of 17.2%.

According to a report by Xinhua News Agency on May 14, a spokesperson for the Ministry of Commerce said that the United States has abused the Section 301 tariff review process to further increase the Section 301 tariffs imposed on some Chinese products due to domestic political considerations, and politicized and instrumentalized economic and trade issues, which is a typical political manipulation, and China strongly disagrees with this. The WTO has long ruled that Section 301 tariffs violate WTO rules. Instead of correcting them, the US side has insisted on going its own way and making mistakes again and again. The US raising Section 301 tariffs violates President Biden's commitment not to seek to suppress and contain China's development, "not to seek decoupling and breaking the chain with China", and is not in line with the spirit of the consensus reached by the two heads of state, which will seriously affect the atmosphere of bilateral cooperation. The US should immediately correct its wrong approach and lift the additional tariffs imposed on China. China will take resolute measures to defend its rights and interests.

In this regard, Russian President Vladimir Putin pointed out that the United States recently announced tariffs on Chinese electric vehicles, "this is because Chinese cars are getting better and better, and the United States can only engage in this kind of unfair competition, and there is no other reason for this."

"The U.S. policy of imposing tariffs on Chinese electric vehicles will undoubtedly increase the cost of domestic car companies to export business in the U.S. market, which may lead to a decline in the competitiveness of some car companies in the U.S. market. However, the scale of domestic exports to the United States is limited, so the impact is under control. Liu Chunsheng, an associate professor at the Central University of Finance and Economics, told the "Daily Economic News" reporter.

In 2023, China's new energy vehicle exports will hit a new high, with Europe being the first largest market and Asia being the second largest market. According to data from the China Association of Automobile Manufacturers, the top two markets account for more than 70% of the market, while the North American market accounts for only 13%. In addition, the top three countries for domestic EV exports are Belgium, Brazil and the United Kingdom, and the United States is not a major market.

There is a view that the tariffs imposed by the United States this time are to force domestic enterprises to move their production links out of China, and then force them to invest or transfer technology to the United States. "However, the U.S. tariff adjustment may also prompt domestic automakers to accelerate the pace of technological upgrading and cost optimization, and find more international markets to balance risks." Liu Chunsheng thinks.

Jia Yueting angrily denounced the United States

Said that "it can help Chinese car companies enter the U.S. market"

"The U.S. has imposed four times tariffs on Chinese electric vehicles, affecting the normal competition of the global EV (pure electric vehicle) industry, and this kind of protectionist behavior is contrary to the wave of economic globalization. In particular, it is a big blow to Chinese EV companies that already have global competitiveness to go overseas. Jia Yueting, founder and chief product and user ecology officer (CPUO) of FF, said on his personal social platform.

Jia Yueting said that Faraday Future can help Chinese car companies and supply chains quickly enter the U.S. market.

"More and more people are beginning to pay attention to the uniqueness and many unique values of FF as a bridge between the Chinese and American automobile industries, and my personal IP and I are also making continuous efforts to build a bridge of friendship between China and the United States and the economic bridge between China and the United States." Jia Yueting said that under the premise of complying with relevant U.S. laws and regulations, FF can help Chinese car companies and supply chains quickly enter the U.S. market, greatly reducing trial and error and time costs, and hopes to cooperate with Chinese car companies.

"In the past decade, we have created a complete, mature and leading FF aiHyper 6X4 technology architecture 2.0 that continues to evolve, a leading AI platform, an AI Internet application system, a vehicle software system, a user acquisition and user operation ecosystem that is fully adapted to the ecology of the U.S. automotive industry, and has completed the leap from zero to one in the U.S. market. Chinese companies and supply chain partners interested in building bridges between the U.S.-China automotive industry can connect with us. Jia Yueting said.

Previously, on April 24, Faraday Future announced that it had received a letter from the Nasdaq exchange that it would be delisted from Nasdaq for not complying with the Nasdaq listing rules, because the company's securities closed at $0.10 or lower for ten consecutive trading days. Faraday Future said it intends to appeal the delisting ruling. Jia Yueting said that "the company is facing a very large risk of delisting, but it is not as misinterpreted by some media to be delisted." Jia Yueting said that as the founder of Faraday Future, he will do everything in his power with the management to restore compliance and strive to maintain the listing qualification.

According to a report by Shenzhen Business Daily on May 16, Faraday Future said that the sharp rise in stock prices this week marks that the founder Jia Yueting's ongoing "FF listing qualification defense battle" has made a good start, giving the capital market and the company great confidence.

It is reported that Jia Yueting has been building cars for 10 years, and Faraday Future has delivered a total of 11 vehicles. According to Faraday Future's official data, Faraday Future will only deliver 10 FF91 2.0 Futurist Alliance units in 2023, including one owned by Jia Yueting. According to official disclosures, among the 10 car owners, there are well-known American real estate developers and entertainment stars. On February 7, 2024, Faraday Future and Jia Yueting simultaneously announced the delivery of one FF91 2.0 Futurist Alliance to Hollywood star Morgan Freeman's company.

And in mid-March, Faraday Future filed a recall plan with the U.S. Highway Traffic Safety Administration to recall 11 FF91 2.0 manufactured in 2023, the reason for the recall is that when the airbag control unit (ACU) detects a system failure, a software error may prevent the airbag failure warning light from illuminating, and the driver will not be warned that the ACU has lost communication failure, which may increase the risk of occupant injury if the airbag is properly deployed during a collision. In response to the above defects, Faraday Future will update the iHUB module software via OTA.

In April this year, Jia Yueting said that he had repaid more than 10 billion US dollars (about 72 billion yuan) in debt over the years, and there was no debt under the US legal system. "Nevertheless, I will still do my best to settle my debts under the Chinese legal system as soon as possible." Jia Yueting said. He also said, "There are rumors that the cumulative repayment of more than 10 billion US dollars by me and the company is repaid with the FF stock debt trust, which is completely wrong and rumor." In fact, almost all of the $10 billion was repaid in cash, and in the process of repayment, in order to raise funds quickly, many assets were sold at a low price and forced to be auctioned, and the auction price was less than half of the actual value."

"The day I successfully build the car and pay off the debt is when I return to China." Jia Yueting said.

According to the company's investigation data, as of now, Jia Yueting has been executed for more than 1 billion yuan, and the unfulfilled amount of the final case has exceeded 8 billion yuan. From this point of view, Jia Yueting's road back to China may still be long.

(This article does not constitute investment advice, and you do so at your own risk)

Editor|Duan Lian Du Hengfeng

Proofreading|Sun Zhicheng

The daily economic news is synthesized from China Fund News, Xinhua News Agency, every economic network, CCTV International News, Jia Yueting social media, public information, etc

National Business Daily

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