Faraday Future stated that it received a notice from NASDAQ on December 28th regarding delisting or non-compliance with continuing listing rules or standards. The company must raise its stock price to the required level (1 USD) for at least 10 consecutive days before June 25, 2024, in order to restore its compliance. Otherwise, there is a risk of delisting. If Faraday is delisted in the future, Jia Yueting's car making business will suffer a heavy setback.
The stock price has been consistently below $1
According to the company's announcement, from November 9, 2023 to December 27, 2023, the stock price of the company was unable to maintain a requirement above $1.
The company must raise its stock price to the required level ($1) or above for at least 10 consecutive days before June 25, 2024, in order to restore its compliance. If the company fails to meet the requirements before June 25, 2024 and is not eligible for an additional compliance period at that time, Nasdaq will provide notice to the company that its securities will be delisted. At that time, the company can appeal to the NASDAQ Listing Qualification Panel ("Panel") regarding the delisting decision of NASDAQ. The company will continue to go public until the expert group makes a decision.
As of now, Faraday's latest stock price is at $0.23 per share, with a new market value of $30 million. In August of this year, Faraday Future announced a reverse split to restore compliance. However, since early September, due to cash shortages and supply chain issues, the company's stock price has continued to decline, with a cumulative decline of 99% this year.
(FF's stock price performance in recent years. Wind)
Last month, they announced their high-profile entry into the Middle East market
At the end of November this year, Faraday Future held a high-profile strategic press conference to enter the Middle East at the Ritz Carlton Hotel in Abu Dhabi, the capital of the United Arab Emirates, officially announcing its entry into the Middle East market. Meanwhile, Faraday Future also announced the signing of strategic cooperation agreements with two companies with royal backgrounds in the United Arab Emirates.
The FF 91 2.0 Futurist aiFalcon Limited Edition, released by Faraday Future, comes with exclusive features such as 1-on-1 customized private AI and UAE gold/crystal badges. It also offers a series of exclusive upgrade options and free maintenance, perfectly matching the interests and hobbies of Middle Eastern tycoons.
According to its official WeChat account, within 72 hours of holding the FF Middle East Strategy Conference in Abu Dhabi, Faraday Future officially announced that it has received over 300 non binding, deposit free bookings for the FF 91 2.0 Futurist aiFalcon Limited Edition, which is expected to be officially launched in the Middle East market as early as 2024.
On December 4th, the Abu Dhabi Investment Office (ADIO) and Faraday Future announced that FF will bring its generative AI technology and AI tram to the Smart Driving Vehicle Industry Cluster (SAVI) in Abu Dhabi, the capital of the United Arab Emirates. FF has developed a generative AI product stack suitable for in car scenarios. ADIO will collaborate with FF to seek opportunities to establish regional headquarters, manufacturing factories, and advanced research and development centers in Abu Dhabi, focusing on next-generation tram and AI technology, and expanding the UAE capital market.
Arthur D. Little (ADL), an international management consulting firm, has released the 2023 Global Electric Mobility Readiness Index (GEMRIX) report, which shows that the United Arab Emirates ranks seventh globally in terms of readiness to transition to electric vehicles and first in the Middle East. Some analysts believe that the UAE's forward-looking electrification strategy and strong purchasing power are attracting some global new energy vehicle companies to start laying out their markets. Earlier, the United Arab Emirates issued the National Electric Vehicle Policy and approved the National Energy Strategy 2050 Update to enhance the country's global competitiveness in the energy sector.
Only 7 vehicles will be delivered in a quarter
It is worth noting that on November 14th, Faraday Future released its third quarter financial report for 2023, which showed that FF's car sales revenue in the third quarter was 551000 US dollars (approximately 3.92 million yuan), and its net loss in the third quarter was 78.046 million US dollars (approximately 555.28 million yuan). As of the end of the third quarter, Faraday's future cash and restricted cash were only $8.567 million (approximately RMB 60.95 million), of which restricted cash was $1.853 million (approximately RMB 13.18 million).
It is understood that this is the first time the company has achieved revenue in the third quarter, and it is also an important milestone for the company. But according to the company's financial report, Faraday delivered a total of 7 FF 91 2.0 Futurist Alliance units in the future (3 of which were actually delivered in October).
On December 18, the latest article on Faraday Future (hereinafter referred to as "FF"), the official WeChat official account of Faraday Future, FF delivered FF 91 2.0 to Ma Xiao, a founding team member. Ma Xiao currently serves as the product and mobile ecosystem manager for FF, as well as the company's strategic manager. The delivery ceremony was completed at the company's Hanford factory.
As early as 2018, Nick Sampson, one of the three founders, made it clear in his resignation letter that Faraday was on the brink of bankruptcy in the future.
Since the end of August this year, Faraday's future US stock prices have been continuously declining. In September, in order to regain investor confidence, Faraday Future announced the appointment of a new global CEO and announced a management stock purchase plan, stating that FF management will further strengthen its connection with shareholders through stock purchases.
Among them, executives such as Jia Yueting, Chen Xuefeng, and Matthias Edeter, the global CEO of FF, voluntarily increased their holdings of stocks at market prices. Jia Yueting stated at the time that this measure demonstrated the strong collective ownership spirit of FF executives and their great confidence in the company, reflecting a high degree of alignment between the interests of executives and the company. Matthias Edeter also stated at the time, "From the performance of the company's stock price, the management believes that the value of FF is seriously undervalued by the market. Therefore, we hope to demonstrate the commitment and belief of the company's management personnel to the company to shareholders by signing these agreements."
But the increase in holdings by executives did not have a significant impact, and the company's stock price continued to decline until the exchange issued a delisting warning.
It is worth mentioning that on the morning of October 16th, Jia Yueting issued an "Open Letter from Jia Yueting to All Shareholders and Investors" (hereinafter referred to as the "Open Letter"), which mentioned that the current market value of FF has fallen to less than 1% of the total cash investment of over 3 billion US dollars.
"I have personally received a lot of unfair accusations, even threats... Regarding the serious deviation between FF's true value and the capital market value, I am actually the most anxious. I am deeply ashamed of not bringing the expected value return to all shareholders and investors." Jia Yueting said.
Previously, in September of this year, LeEco Information Technology (Beijing) Co., Ltd. (hereinafter referred to as "LeEco") was awarded a first instance judgment. LeEco was ordered to compensate the plaintiff investor 2.04 billion yuan, and Jia Yueting assumed joint and several liability for compensation.
While investors are anxious to recover losses, Jia Yueting is still suffocating his dreams overseas. In his previous open letter, Jia Yueting expressed his apologies to the investors who suffered losses due to the delisting of LeEco, stating that he "improperly fled" and would start his own business as an FF through working.
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