Chinanews client, Beijing, December 5 (Reporter Zhang Xu) Jia Yueting is a bit annoying recently.

Faraday Future (hereinafter referred to as "FF"), which it founded, went public and raised funds only 4 months before it suffered a short sale and was rumored to be delisted from the Nasdaq.

In China, the headquarter building of LeTV, which has witnessed the glory, was auctioned again...

　　Which one will come first, "return to China next week" or "FF mass production delivery"?

Data map.

Jia Yueting.

FF will be delisted by Nasdaq?

　　In July of this year, FF was successfully listed on the Nasdaq and raised US$1 billion for car manufacturing.

Just four months after listing, Jia Yueting's smile has not faded, and there are rumors that FF will be delisted.

Some netizens joked: Is Jia Yueting a liar again?

　　In October, investment institution J Capital Research released a 28-page short selling report.

Many questions were raised about FF's R&D investment, production capacity, capital operation performance, and founder Jia Yueting himself.

　　The short-selling report believes that FF had previously promised to build six factories in five locations in China and the United States, but the plan was not implemented.

Moreover, the Hanford factory in the United States, where FF promised to restart and start production within 7 months, has not made substantial progress.

J Capital Research believes: "FF company can't sell a single car."

　　The report also believes that the listing of FF cars in the United States is just a tool for Jia Yueting to accumulate money in the United States and fill the black hole of his own debt.

　　Although Jia Yueting subsequently responded: "The short-selling institution's remarks are ridiculous, nonsense, this is not the first time that the institution has been slapped in the face."

Jia Yueting also stated: "July 2022, Hanford, California, see you on the birth of new species."

FF responded to receiving a NASDAQ warning letter.

Picture from FF public account

　　But FF had to investigate the allegations, missed the time to release the financial report, and therefore received a warning letter from Nasdaq.

In this regard, FF stated in the explanation that receiving the warning letter does not mean that Nasdaq requires FF to be delisted. This is a wrong interpretation and stated that once FF submits the agreement to Nasdaq within the time specified in the plan. According to the plan, FF will return to its normal state under the Nasdaq rules.

　　How much impact does the short report have on FF?

"If financial fraud is confirmed in the United States, it means that FF's business model, some of the company's product plans, and production operations are untrustworthy, which means that there is no way to mass produce new cars according to this plan." Zhang Xiang, an automotive analyst Said that the controversy that Jia Yueting encountered in the United States had a very serious impact on him.

　　Recently, FF stock price has been falling.

As of the close of US stocks on December 2, the market value of FF was only US$2.134 billion, which was a drop of more than 50% from its market value of US$5.4 billion on the day of its listing.

FF's share price has fallen by more than 50% compared to its listing.

Data comes from a straight flush

　　Even so, the management of FF Company expressed confidence that the net cash on hand is expected to be sufficient to complete the production and development of the first FF91.

After the launch of FF91 in July 2022, the company will need to raise additional funds for continued operations.

Jia Yueting, from "Buy, Buy, Buy" to "Sell, Sell, Sell"

　　On the one hand, FF is still burning money, and on the other hand, Jia Yueting’s domestic sinkhole has not been filled.

　　On November 30, the original LeTV headquarters was bid by Beijing Hengying Property Management Co., Ltd. for 573 million yuan.

This building has witnessed the brilliance of LeTV and the decline of Jia Yueting.

　　Jia Yueting's car-building plan started in 2014, and that year, Jia Yueting bought LeTV Building.

In 2015, the share price of LeTV, which holds many copyrights, reached an all-time high, with a market value of more than 170 billion yuan, becoming the leader of the GEM.

　　However, the good times did not last long. As Jia Yueting consumed a lot of money to build cars, at the end of 2016, LeTV broke out in a financial chain crisis.

Jia Yueting also switched from "buy, buy, buy" to "sell, sell, sell" mode.

The LeTV headquarters building was auctioned successfully on November 30.

Picture from Ali Auction

　　LeEco first pledged LeEco Building in exchange for a 1.4 billion yuan loan, and then attracted Sunac Sun Hongbin into the game, but it still didn't help.

In the end, Jia Yueting left the United States, leaving behind the notoriety of "returning home next week."

　　Sunac immediately took over many assets of LeTV, including this building, which was later renamed "Le Rong Building".

After two consecutive auctions, on November 30, 2021, LeTV Building was sold at a price of about 573 million yuan, which is almost half of the estimated price two years ago.

　　In July of this year, Jia Yueting's most valuable asset, Shimao Gongsan, was auctioned at a price of 1.645 billion yuan.

The final price was 50% off the purchase price of nearly 3 billion yuan that year, which shows how "hot" Jia Yueting's assets are.

　　However, LeEco and Jia Yueting are still plagued by huge debts.

According to the Enterprise Check App, LeTV Holdings has 8 records of executed persons, and the total amount of executed exceeds 5.6 billion yuan.

Of the 14 domestic companies that Jia Yueting has worked for, 7 have been cancelled.

The data comes from the enterprise search app.

Jia Yueting's FF is bad for a car

　　Jia Yueting FF's first "mass-produced model" FF91 was unveiled in the United States as early as January 2017. At that time, he vowed that it would be officially delivered by the end of 2018.

But 4 years later, this "hands on the door" is still missing.

　　Automobile is a high-tech industry with heavy assets.

The prospectus shows that in 2019 and 2020, FF's R&D investment is only 28.28 million U.S. dollars and 2018 million U.S. dollars, while companies such as Weilai and Ideal have annual R&D expenditures of up to 100 million U.S. dollars.

FF91.

Picture from FF official website

　　Although FF has made a bold statement of delivering 450,000 vehicles in 2025, the industry does not look good on it.

Cui Dongshu, secretary-general of the Association of Transportation, believes: "FF91 was established very early and may not keep up with the times, and the price is too high, sales will not be large, and it is difficult to flatten the research and development expenses."

　　Zhang Xiang said bluntly that it is basically impossible for FF to deliver 450,000 units in 2025.

"FF91 is priced as high as 200,000 US dollars, which is equivalent to Ferrari Lamborghini. These supercars can only sell hundreds of thousands a year. With FF's market popularity, sales cannot exceed these brands."

　　The latest data released by FF shows that the net loss in the third quarter of this year was US$280 million, compared with a net loss of US$33 million in the same period last year, and the net loss increased significantly.

　　Since the establishment of FF, the company has accumulated operating losses and cash flow from operating activities has been negative. It is estimated that as of September 30, 2021, the company's accumulated deficit will be approximately US$2.8 billion.

This means that FF, which has not yet begun delivery, is still burning money and needs more financing to promote mass production.

The picture comes from the FF public account.

　　Can FF survive that day and let Jia Yueting pay the debts owed?

"Ultra-high pricing is a means by Jia Yueting to attract capital and media attention, with the purpose of further financing. Because labor costs and factory costs are high, but the sales volume of FF91 is destined to not be very large. If further financing is not possible, it will be like a lot. The new forces that build cars are shut down, the reality is cruel.” Zhang Xiang thinks.

　　When FF went public, when Jia Yueting was asked about returning to China, he categorically answered "It is necessary!" It is still unknown whether "return to China next week" or "FF mass production delivery" will be realized first.

(over)