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The headquarters building owes 660000 yuan in rent! FF was sued.

2024-05-27 Update From: AutoBeta NAV: AutoBeta > News >

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AutoBeta(AutoBeta.net)03/03 Report--

Faraday Future (FF), the electric car company founded by Jia Yueting, is in new trouble. According to media reports, Rexford Industries (Rexford Industrial), the landlord of Faraday's future Los Angeles headquarters, filed a lawsuit against FF in Los Angeles Superior Court this week because FF could not pay the rent.

According to reports, landlord Rexford Industries (Rexford Industrial) accused FF of defaulting on January and February rent and related maintenance fees and taxes, and owed a total of $91000 (about 660000 yuan) in rent. The landlord demanded the repossession of the building in a lawsuit. As of press time, FF officials did not respond to the news.

FF's Los Angeles headquarters is a 10-acre industrial building originally owned by FF that FF bought for $13.2 million in 2014, according to the data. FF rented the building back from FF after it sold it to a subsidiary of New York real estate company Atlas Capital in March 2019 to raise cash. In 2022, the property sold the building to Rexford Industries (Rexford Industrial) for $64.3 million and took over the lease of FF.

Now that FF is heavily in debt, in addition to the rent owed by the above-mentioned headquarters, BXP Realty, the landlord of FF's office in San Jose, reportedly filed a lawsuit in January, alleging that FF failed to pay rent in December and had an outstanding balance of $127311.16 (about 917000 yuan).

Looking back on the process of building FF cars, it has been nearly 10 years since FF built cars, but FF has never been able to escape from the fate of lack of money.

Jia Yueting founded FF in 2014 and completed a $1 billion round of financing the following year. After that, Jia Yueting left the United States because of Letv's financial crisis, and eventually FF funding was in crisis, and the car-building project came to a standstill. In January 2017, on the other side of the Atlantic, FF unveiled its first flagship model, the FF91, which is known as "the world's first Internet eco-electric car." in the following years, FF held several quasi-production conferences, but it backfired and eventually mass production led to multiple ticket skips due to operational difficulties. It wasn't until April 2023 that FF announced the completion of production of its first production car, the FF91 Futurist, and the launch of the FF ieFactory production line in Hanford, California.

In the previous FF91 Futurist mass production conference, Jia Yueting said that after 9 years of suffocation for the dream, crazy persistence and determination not to be understood led to today's mass production. On January 3, FF announced that FF had completed the delivery of 10 FF91 2.0 Futurist Alliance in 2023. In other words, Jia Yueting only delivered 10 new cars in 9 years, of which the fourth was owned by Jia Yueting himself.

For the delivery performance of FF2023 year, Jia Yueting said that 2023 is a milestone in the history of FF development, the company formed a closed loop and officially entered the delivery revenue stage. It is worth mentioning that nearly 10 years of car-building, Jia Yueting's heroic words about car-building are still fresh in my mind, but since the car-building, FF's financial situation has been very tight and it has faced cash flow crises many times.

In the third quarter of 2023, FF reported a net loss of $78 million (569 million yuan) during the FF reporting period, but generated revenue for the first time, totaling $551000 (4.02 million yuan) from car sales. In fact, since FF started building cars, it has invested about $3 billion (21.9 billion yuan) to begin its current delivery, and it is clear that revenue of $551000 is "negligible" compared with the huge investment.

Although FF has started delivery, FF has not received a positive response in the capital market, because the first model of FF has skipped tickets many times, and FF often puts forward new financing requirements while jumping tickets, which has damaged the credibility of FF's brand. In this context, it is not easy for FF to get investment. In addition, FF had previously received a delisting warning from Nasdaq because its share price was below $1 for 30 consecutive trading days. Under the listing rules, FF needs to return its share price to $1 and maintain it for at least 10 days by June 25, 2024, or face delisting. According to Wind, FF shares fell by 98.94% in 2023.

This year is the tenth year that Jia Yueting founded FF, but so far, FF has only one mass production model, FF91, which takes nearly nine years from mass production to delivery. For the current FF, how to faster promote delivery climbing is its top priority this year, but the industry believes that FF mass production is so difficult, large-scale delivery is even more difficult. Judging from the market performance of FF, FF still has to pay more efforts to achieve full delivery of vehicles, and the most important thing is whether FF can get the investment of investors, after all, capital is indispensable for car manufacturers.

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