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faraday future’s stock price suddenly skyrocketed!

on the evening of september 4th, beijing time, faraday future (ff) stock price suddenly soared after the opening, rising by more than 80% at one point. as of press time, the increase had fallen back to more than 50%.

on the news front, faraday future founder jia yueting recently issued a call on social media, inviting global technical talents to participate in the creation of faraday future's new sub-brand.

jia yueting will launch ff's second brand

focus on the 140,000-570,000 yuan market

recently, jia yueting, founder and chief product and user ecology officer of faraday future, has released videos intensively on weibo, announcing that the "ff china-us automotive industry bridge strategy and second brand launch conference" will be held on september 19, at which time more information and implementation plans will be shared. a questionnaire survey was also launched on september 4, inviting everyone to "work together to create a popular and popular model that meets the needs of the us market."

jia yueting said that faraday future hopes to promote the development of the new brand through an open innovation model, gathering ideas and technologies from around the world. this strategy will not only help enhance the brand's market competitiveness, but also means that the company will use the latest scientific and technological achievements, especially in the field of artificial intelligence, to provide users with smarter and more efficient travel solutions.

jia yueting said that faraday future's second brand will focus on ai ev, featuring "extreme cost-effectiveness" and creating ai ev products with "twice the performance and half the price".

jia yueting also said that next year, through ff's value empowerment, chinese cars will be brought to american users.

according to the shanghai securities news, relevant sources said that as part of the dual-home strategy, faraday future is expected to play the role of a corporate bridge, integrating the advantages of the u.s. auto industry with those of chinese oems, parts suppliers and their supply chains.and focus on the market in the price range of us$20,000 to us$80,000 (approximately rmb 140,000 to rmb 570,000)"by giving our second brand many of the core technologies used in the $300,000 ff 91, our bridge strategy plans to launch more cost-effective electric vehicles," said matthias, global ceo of faraday future.

currently, faraday future has started discussions with a number of chinese oems and global suppliers. the company expects to help build a bridge between the u.s. and chinese automotive industries through industrial coordination and cooperation, leveraging its capabilities in products, technologies, regulatory processes, and its manufacturing plant in hanford, california.

ff's net loss in the first half of the year was 1.1 billion yuan

during the year3 vehicles delivered

on august 15, beijing time, faraday future released its second quarter results for 2024. during the period, faraday future's revenue was us$293,000.operating loss narrowed to $50.609 million from $55.979 million in the same period last year, with a net loss of approximately $109 million.。

in the first half of 2024, faraday future achieved a total revenue of us$295,000; with a significant reduction in r&d and sales costs,net loss fell from $270 million in the same period last year to $157 million (about rmb 1.1 billion)as of june 30, the company had total assets of approximately $458 million and total liabilities of approximately $309 million.net worth: approximately $149 million。

faraday future expects that its operating costs will continue to narrow year-on-year this year. based on current business needs and financial conditions, the company said it has adjusted its operations and employee size and will continue to promote vehicle production and delivery.

faraday future’s main financial data in the second quarter of 2024 (source: financial report screenshot)

faraday future was founded in may 2014, a decade ago, but the total sales of its models are only 13. during this period, the company was frequently exposed to financial constraints, salary cuts and layoffs, and rent arrears. the launch and mass production of its only model, ff 91, were also repeatedly delayed.

in jia yueting's plan, faraday future will target traditional super luxury brands and subvert traditional luxury car culture. he once confidently said, "in the future, our user profile should be similar in scale to rolls-royce, ferrari, bentley and maybach. the total annual sales of these brands is 55,000 vehicles."

however, the market performance of ff 91 is not as good as jia yueting expected. in the ten years since faraday future was founded, the total sales volume is only 13 units. since the official delivery in august 2023, only 4 new ff 91 cars were sold that year, and another 6 new cars were leased. jia yueting revealed that the owners of ff 91 include well-known people such as american real estate developers and entertainment stars.

from january to june 2024, faraday future will only deliver 2 new carsone of the cars was purchased by a transportation service company founded by oscar winner morgan freeman, which will be used to provide vip car services; the other car was purchased by an individual investor. in other words, faraday future's revenue in the first half of this year mainly came from the sales of these two cars.

just one day before faraday future released its second quarter financial report,it finally delivered the third new car of the yearthe delivery target is gao wei, head of faraday future's global communications and community sales. however, selling cars to its own employees is not a long-term solution. faraday future still needs to find a continuous and stable source of funds to support its long-term operations.

jia yuepavilion is still trying to "find money"

it once claimed that "more than 10 billion us dollars of debt has been repaid"

on the day of the earnings announcement, faraday future also held a second quarter earnings conference call. the meeting lasted only 12 minutes and mainly focused on the second brand and faraday future's development plan, intending to convey to the outside world the management's confidence in the company's continued development.

since its listing, faraday future has encountered delisting crises many times due to poor sales, deep losses, low stock prices, and failure to submit financial reports in a timely manner. on april 24 this year, the nasdaq stock exchange warned that faraday future's closing price would be revoked because the company's listing qualification would be revoked because its closing price had reached or been below $0.10 for ten consecutive trading days.

jia yueting has spoken out on his personal weibo many times, trying to save faraday future. in the video, he said that the company has submitted an appeal to the nasdaq stock exchange to maintain its listing qualifications through rectification and compliance, and he will commercialize his personal ip and use all the proceeds to repay debts and help faraday future build cars.

on may 29, jia yueting announced that the nasdaq stock exchange had approved faraday future's application to continue trading. at the same time, he also mentioned many times that management has never stopped looking for blood transfusion channels to support the company's development.

at present, faraday future is still seeking strategic financing, and jia yueting calls this process a "dream defense war." in the second quarter of this year, faraday future raised about $15.5 million through convertible bond financing, but for a company that loses hundreds of millions of dollars a year, it is still a drop in the bucket.

matthias aydt said at the earnings conference that once the strategic funds are in place, (the company) will be able to increase production and deliver more ff 91. in addition, the incremental funds can also support the company's china-us cooperation strategy and promote the ff brand to enter the middle east market.

as for the issue of debt repayment and when to return to china that netizens are most concerned about, jia yueting said in april this year that he has repaid more than 10 billion us dollars (about 72 billion yuan) in debt over the years.no debt exists under the u.s. legal system"despite this, i will still do my best to settle the debts under the chinese legal system as soon as possible," jia yueting said. he also said, "some people spread rumors that the 10 billion us dollars that i and the company have repaid cumulatively were repaid with ff stock debt trusts. this is completely wrong and a rumor. in fact, almost all of the 10 billion us dollars were repaid in cash, and during the repayment process, in order to quickly raise funds, many assets were sold at a low price and forced to be auctioned, and the auction price was less than half of the actual value."

"the day i succeed in making cars and pay off my debts will be the day i return to china," said jia yueting.

however, according to a third-party platform, the amount of money that jia yueting has not yet fulfilled in the final case exceeds 10 billion yuan. from this point of view, jia yueting's road to return to china may still be long.