AutoBeta(AutoBeta.net)08/26 Report--

Faraday, which has been building cars for eight years and has failed to deliver new cars, is in big trouble in the future. On August 26th, according to several media reports, more than 140 employees of Faraday Future Faraday Future (hereinafter referred to as FF) signed a petition calling for the removal of Sus Swenson from the posts of executive chairman and chairman of the board of directors of FF, and called for a general meeting to be held to remove him as a director. According to the petition, the above-mentioned FF employees believe that Sus Swenson, as the first responsible person for the current FF board of directors and business decisions, is responsible for various violations of due diligence since the listing of FF one year ago, and at the same time, responsible for a series of problems such as serious waste of funds caused by FF and continuous delays in the delivery of FF91 products. The FF employee also claimed that Sus Swenson had carried out a series of unfair and improper investigations and corrections to the company and its core executives.

Reported that FF Top Holding LLC, a major shareholder of FF, filed a document with SEC on Tuesday, asking FF to provide a list of shareholders and hold a shareholder meeting as soon as possible to vote on the removal of the current director and former chairman Brian Krolicki. FF Top Holding LLC said in its preliminary power of attorney that the main reason for FF's current financial and operational challenges is the lack of corporate governance capacity of some current board directors.

On Aug. 16, FF reported an operating loss of $286 million (1.938 billion yuan) in the first half of the year, including a loss of $137 million (928 million yuan) in the second quarter and a net loss of $295 million (2 billion yuan) in the first half, including a loss of $142 million (963 million yuan) in the second quarter. As of June 30, 2022, Faraday's future total assets are approximately $588 million, including $121 million in cash. As for the loss, Faraday said in the future that it was mainly due to the increase in engineering, design and testing ("ED&T") services, as the company rehired suppliers and made a large number of purchases for ED&T services to promote the development of FF91, as well as the number of employees and related costs. Faraday also pointed out in the future that the company expects to continue to incur significant operating losses in the foreseeable future because the company will continue to incur expenses before it generates meaningful revenue.

According to public data, Faraday Future Faraday was founded in 2013 by Jia Yueting, founder of Letv. On July 22, 2021, FF listed on Nasdaq in the United States through a special purpose acquisition company (SPAC). On the day of listing, FF said that it would deliver FF91 within the next 12 months, but shortly after listing, FF was shorted, and the production plan of its first brand-new model, FF91, jumped many times during car construction.

Although FF has been building cars for eight years, delivery has not been achieved so far. According to the original plan, the FF91, the first production car of FF, was scheduled to be officially delivered to the first batch of car owners in July, but due to problems such as capital breaks, officials once again announced that delivery would be postponed to the third or fourth quarter of this year. FF said in a document on July 25 that FF needed additional cash to commercialize FF91 and was seeking to raise additional capital to fund its operations until December 31, 2022. In addition to the FF91 series, a large number of additional funds are needed to finance the operation, research, development and design of future vehicles, and it is hoped that $325 million will be raised by the end of this year.

On August 15, FF announced that it had signed a final agreement on a new financing facility, with a financing package of up to $600m reaching $52 million and was actively discussing additional financing with a number of investors. FF Global CEO Bi Fukang said: "I am pleased to have this important new commitment capital and framework to obtain a lot of additional funding. We are working hard to complete this financing process to raise enough new funds to launch FF 91. With the successful completion of the financing process, I believe we can deliver the car to our customers at the end of the third quarter or the fourth quarter. "

The FF91 is FF's first brand-new model, which was first launched in Las Vegas in January 2017, positioning high-end luxury electric vehicles. Although it is not too late to release the FF91, due to many ticket jumps during the production of the FF car, although Jia Yueting has stressed many times in the past that the FF91 model will be delivered on time and with high quality in July this year, it is still "inevitable" to postpone it. According to data submitted by FF to SEC, FF posted a net loss of $142 million, $147 million and $517 million from 2019 to 2021, and a net loss of $295 million in the first half of 2022, compared with $128 million in the same period. As of the first half of 2022, FF's total debt was about $287 million. Based on the current development of FF, the next development of FF is still full of variables.

At the close of trading on Aug. 25, FF closed at $7.420 per share, up 1.92%, with a total market capitalization of $325 million, down from $4.5 billion on the day of FF's IPO in July last year.

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