Original title: Faraday Future’s “delisting” whirlpool company responded that it will deliver financial reports on time Source: Securities Daily
Faraday Future (FF), a global smart car company, has fallen into a delisting whirlpool after only more than 4 months of listing.
A few days ago, FF stated that it had received a NASDAQ letter reminder because it had not submitted its third-quarter financial report on time. According to the letter, FF needs to submit a report within 60 natural days. The latest news shows that FF will be included in the list that does not meet the Nasdaq standards, and it is likely to be delisted.
In addition to being warned, FF is also facing multiple troubles. The company’s losses have increased, the delivery time of vehicles may be delayed, and there is more news that the company may face a class action lawsuit.
On November 28, the relevant person in charge of FF said in an interview with a reporter from “Securities Daily”: “The financial report was delayed because the FF board of directors requested a self-examination of the’short-selling incident’, and the financial report will be delivered on time.”
He revealed that the two FF businesses have not been affected at present. “The company is making every effort to achieve mass production of FF91, and the first batch of cars will be delivered on time in July next year. As for the landing of the China headquarters, the company is negotiating related matters.”
The above warning letter stated that because FF did not submit its third-quarter financial report within the prescribed time limit, it was listed as a listed company that did not meet the requirements. After receiving the delisting warning letter, FF must submit a compliance plan to the Securities and Exchange Commission within 60 days, otherwise it may face delisting.
In this regard, FF said that two days before receiving the warning letter, it had submitted a document to Nasdaq on why the release of the third quarter financial report was postponed. FF stated in the document that the company is investigating allegations of inaccurate disclosure from short sellers, so it postponed the submission of the third quarter financial report. Before the end of the investigation, the financial report will not be submitted, but when the investigation will end, it is currently uncertain.
It is understood that the “accusation” mentioned by FF refers to a 28-page investigation report released by the US Wall Street short-selling agency JCapital Research in October. The report directly pointed out that FF lied on the number of car reservations and the ability to mass produce electric vehicles. .
On July 22 this year, FF was listed on the backdoor, but as of November 26, its market value was only 2 billion US dollars left, a reduction of 50%.
Liu Buchen, chief consultant of Kuafu Enterprise Management Consulting Agency, told a reporter from the Securities Daily, “In fact, the core problem facing FF is not financial reporting, but why compliance operations are so difficult.” A person close to FF told reporters, The company is facing a new funding chain crisis.
Regarding questions such as when the financial report can be handed over and whether it is facing a new capital crisis, the above-mentioned person in charge of FF told reporters, “The company will make up the financial report as scheduled, and all business will proceed normally.”
At the moment, it should have been the time for FF to do a big job.
After the listing, FF raised nearly 1 billion U.S. dollars. On the one hand, it prepared for the delivery and mass production of FF91, and on the other hand, it began to plan to enter the Chinese market.
On September 1, 2021, FF officially announced the appointment of personnel. The new Senior Vice President of China Supply Chain Liu Yuchao will be fully responsible for the work of FF China‘s supply chain.
At the same time, it is reported that the domestic production base of FF is planned to settle in Shanxi. France-France Automobile (China) Co., Ltd. and the Shanxi Changzhi High-tech Zone Management Committee have held an online meeting on issues related to the domestic production base of FF.
Public information shows that Fafa Automobile is a subsidiary of FF and was founded when Jia Yueting took charge of FF. Its business scope covers the sales of new energy vehicles and other businesses. Tianyancha APP information shows that in September this year, its registered capital increased to 330 million yuan, an increase of 560%.
Now, whether the follow-up actions of FF can land smoothly has aroused the attention of the outside world.
Jia Xinguang, chief analyst of China Automotive Industry Consulting and Development Corporation, said in an interview with a reporter from Securities Daily, “Under the influence of this series of recent news, FF wants to gain a foothold in the already competitive smart car market, and even repay its debts. Undoubtedly, they are facing even greater challenges. At present, many smart car factories are facing problems such as shortage of personnel and rising raw material costs.”
FF recently stated that the company lost 280 million U.S. dollars (about 1.788 billion yuan) in the third quarter, but it once again emphasized its goal of delivering the first batch of FF91 in July 2022.
The above-mentioned FF sources said that the localization of FF cars has been put on the agenda.
“For the current FF and Jia Yueting, the most powerful way to counter the short-selling report and multiple negative news is to hand over FF91 on time. However, there is also a certain degree of uncertainty.” Jia Xinguang believes.