An open letter once again sent Jia Yueting, founder and Chief Product and User Ecology Officer of Faraday Future (hereinafter referred to as FF, FFIE, stock price of $1.08, market value of $20088600), to the hot search.
On October 16th, Jia Yueting released an open letter to all shareholders and investors. In an open letter, Jia Yueting stated, "Although the company has successfully achieved one major milestone after another, providing a solid foundation for business development, its stock price and market value have encountered their darkest moments, with the company's market value falling to less than 1% of the total cash investment of just over $3 billion
On October 15th local time, the stock price of FF closed at $1.08 per share, with a market value of $20088600, a drop of over 70% compared to more than a month ago.
Jia Yueting described himself as "extremely anxious" about this. I am deeply ashamed that I did not bring the expected value return to all shareholders and investors, and I hope to fully promote the maximization of FF value, "Jia Yueting said.
On October 17th, FF announced an overall plan to support the stable development of the company and help it achieve sustainability and profitability, while reducing its dependence on external funding sources, including ceasing to sign new convertible bond commitments similar to existing convertible bond structures and suspending the execution of the Reserve Equity Credit Line (ELOC). Implementing this overall plan will help the company achieve positive cash flow and profitability, "FF said.
Nine years ago, I traveled thousands of miles across the ocean to Los Angeles, California, USA to establish FF. ALL IN had everything I had and experienced the worst things you could and could not imagine, "Jia Yueting said in the aforementioned open letter.
According to public information, Jia Yueting founded FF in 2014 and announced the completion of a $1 billion A-round financing the following year. However, after that, Jia Yueting went abroad with a huge debt burden due to a financial crisis in LeTV, ultimately leading to a crisis in FF funds. Although FF joined hands with Evergrande to introduce funds in 2018, due to differences in control rights between the two sides, they eventually "broke up" and the car building project also stagnated.
In January 2017, FF released the FF 91 model, but due to operational difficulties, the mass production of the model was repeatedly postponed. It was not until April of this year that FF officially announced that FF 91 had been taken offline. However, the delivery time for the first phase of FF 91 has been postponed again from the previously planned "before the end of April" to the end of May. On May 31st, the FF 91 2.0 Futurist Alliance (2.0 version of the FF 91 Futurist Alliance) was officially launched at a price of 309000 US dollars (approximately 2.2507 million RMB), with a global limit of 300 vehicles. But it wasn't until August 14th that FF truly delivered the first car of Faraday Future 2.0.
On October 17th, FF China's relevant staff revealed to a reporter from Daily Economic News that as of now, the company has completed the delivery of 5 FF 91 2.0 Futurist Alliance versions.
The fundamental fundamentals of FF's operations have undergone a fundamental transformation, and the new management team is also the strongest team in FF's history. "Jia Yueting stated in the aforementioned open letter that in addition to being constrained by financial conditions, the company is in its best development stage since its establishment and is a critical period for business takeoff.
On September 29th local time, Matthias Aydt, the global CEO of FF, officially took office. At the same time, Chen Xuefeng, the former global CEO of FF, began to reside in China and continued to serve as the CEO of FF China, as well as the Executive Vice President of FF Global Industrialization. It is reported that Matthias Aydt will focus on promoting the production and delivery of the FF 91 2.0 Futurist Alliance next. Chen Xuefeng will focus on the launch of the FF 91 2.0 Futurist Alliance in China, as well as the next stage of the company's development, including the implementation of the dual home court strategy between China and the United States.
In addition, on September 21st local time, FF also announced its executive shareholding increase plan - Matthias Aydt, Jia Yueting, Chen Xuefeng, acting Chief Financial Officer Jonathan Maroko, Chief Accounting Officer Han Yun, and other company executives and management members have voluntarily signed a salary deduction and stock purchase agreement.
Despite the recent positive news about FF, it has not been recognized by the capital market. As of the close of October 15th Eastern Time, FF's stock price fell to $1.08 per share, a 92% decrease from its listing price of $13.78 per share in July 2021.
Jia Yueting stated that FF is taking six major measures to safeguard shareholder interests and restore market confidence as quickly as possible, accelerating the achievement of strategic goals. On the one hand, FF is developing a series of measures to identify and combat potential abuse and illegal short selling behavior. On the other hand, FF is making every effort to attract institutional and strategic investors, solve the funding problem as soon as possible, and vigorously promote the ramp up of production. In addition, the company is also making every effort to improve its supply chain management capabilities and overall cost control capabilities.