That year, at 48, Nasdaq rang the bell and stood as if…
There are three unsolved mysteries in the automotive industry. The first one is Faraday Future (Faraday Future, referred to as “FF”) when will it be mass-produced? The second one is can FF survive? The third one is when will Jia Yueting return to China? On July 22, U.S. time, FF was listed on the Nasdaq through a backdoor, which was half of the answer to the second question-the funds raised from the listing solved FF’s urgent need, and you can continue to talk to the audience. Mass production story”. This fortune-telling is continued, but it is still unknown whether it can survive long-term and high-quality.
In fact, the above three issues are closely related. After all, FF will live better only if the mass production problem is solved; and FF will live better, and the dividends to Jia Yueting’s creditors will be higher, and the former will be possible to pay off the debt. , Take off the title of Lao Lai and return to China. But this successful backdoor listing will really allow the above “dream cycle” to continue?
01 bounced for 4 years, how much is FF worth?
It is the dream of many entrepreneurs to ring the bell on Nasdaq, even for Jia Yueting, who is used to the big scenes. On July 22, local time, FF announced that it had officially completed the merger transaction with Property Solutions Acquisition Corp. (“PSAC”) and successfully landed on Nasdaq through a reverse acquisition. And Jia Yueting finally came to the Nasdaq trading center in the New York era as an Autobot .
Unfortunately, the dream is only half of the circle, as the soul of FF figure of him at this historic moment, the audience applauded only stand and watch six external partners from different fields to complete FF bell ceremony. It is a pity that FFIE broke after only one hour after the opening.
After the formal merger of FF and PSAC, the company has changed its name to “Faraday Future Intelligent Electric Inc.” with the stock code “FFIE”, where I stands for Intelligent and Internet, and E stands for Ecosystem and electric vehicles. (Electric). Through this listing, the company successfully raised more than $1 billion in funds, and will use this money to achieve the delivery of the FF 91 futurist version within 12 months.
But this time, is it late?
In the eyes of many tycoons in the industry, especially new power tycoons, today’s Chinese auto industry still leaves a window for smart cars. He Xiaopeng believes that the outbreak period of smart cars is 2023-2025, and there is at least a two-year window. From this point of view, FF, which can achieve mass production (official planning) within one year after listing, seems to be able to catch up with the last train.
But things are not that simple. The current window period is reserved for companies that are already “on the road”, allowing them to gain momentum in talent, technology and other fields. In terms of capital, technology, talents, and public opinion environment, FF still faces many difficulties. It is even difficult to build a system, let alone gaining momentum.
In January 2017, FF 91 was officially released. At that time, Tesla Model 3 had not yet begun to be delivered; Weilai had no mass- produced cars for mass consumers, and was busy using EP9 to “brand” in various competitions; Xiaopeng engineering vehicles had not yet been offline; In the era of “cars and homes”, they are busy building small and beautiful low-speed electric vehicles SEV. It can be said that FF is not too late at all.
Now that 2021 is more than half, Model 3 has become one of the world’s leading electric vehicle sales; Weilai, Xiaopeng, and the ideal US stock market value can already “hang out” many traditional car companies. And FF? In the circle of friends of a certain employee, the body-in-white and pre-production car of FF 91 have been off the assembly line N times, but the official production car is nowhere to be seen.
FF said that now FF’s Hanford factory in California has mass production capacity, with a production capacity of about 10,000 vehicles per year. FF 91 will also be officially mass produced within 12 months after the launch. This time, There should be no reason for FF backed by 1 billion US dollars to skip votes again, right?
However, according to analysis by Cao He, president of Quanlian Automobile Dealers Investment Management Co., Ltd., the so-called “listed fundraising of US$1 billion” is not accurate. There should be some additional conditions behind it, which cannot be achieved so easily. And even get this $ 1 billion, Cao Crane still do not look good in the future development of the FF. “From the perspective of future development, although backdoor listings have been achieved in the United States, if FF wants to fully revitalize, its ultimate destination will still be in the Chinese market. However, under the influence of Jia Yueting’s series of dark histories, the public opinion environment of FF in China has become more and more serious. It’s getting worse.”
Regarding the development of FF in China, Oliver Wyman Consulting Managing Partner Zhang Junyi also expressed concern. “There are two main problems. The first is financing. Even if some domestic companies want to invest in FF, they dare not make a big fanfare. After all, FF’s reputation is already stinking, and excessive binding with him will damage the company’s reputation. The second is talent. It is very difficult for FF to recruit’big cattle’-level talents in China. After all, the company has a reputation. It is difficult for FF to compete with other smart electric vehicle companies for talents with the same salary.”
In addition, even if FF 91 is successfully mass-produced, it will only be a boost to FF, which can “suspend life”, but it can’t make the company “live and kick”. In the view of Li Hua, an employee of a new domestic car maker, FF is taking the same path as Tesla before. It first launches high-end electric vehicles to establish a brand image of “high-end smart electric”, and then launches affordable products to seize the market. , But Tesla completed these two steps in 2017, and only then has the current “harvest” situation. But now that Jieguyan FF still wants to go like this, it seems too late.
“When did Tesla’s stock price start to soar? It was after the Model 3 was delivered in large quantities. Even if the FF 91 can be delivered in 2022, it can be sold at a domestic price of 2 million. Who can afford it? The mid-market FF 81 The research and development of the FF 71 for the low-end market can only begin in 2022, and the day lily will be cold when these two cars come out.” Li Hua said.
“In the era of intelligence, it’s data, and autonomous driving is driving mileage. Even if the technical content of FF 91 is extremely forward-looking, it can still maintain the lead after 4 years of mass production. However, Tesla has accumulated a lot during this time. How many kilometers of driving data are there? How much have Weilai and Xiaopeng accumulated? Even if the FF car comes out, how can you compare it with others?
02 Fundraising 1 billion, FF is still in demand?
The end of 2016, before Jia Yueting across the ocean, had Weibo share on the lyrics Shin “brighter” – The people who know me, thank you a Lu Momo’s with me , let me have a good story can be said.
Today, Jia Yueting is still telling his moving FF story in the United States, but many people who think they know him well have been miserable by him. For example, Sun Hongbin, who only talked to Jia Yueting for 6 hours and decided to buy LeTV for 15 billion yuan, for example, only had a meal with Jia Yueting, and concluded that his humble, polite and reliable Zhou Hang was.
These two “understand” Jia Yueting, how has the mentality of the people who have accompanied Jia Yueting silently changed? The former said to LeTV investors in public, “If you lose money, it has nothing to do with me. Don’t scold me, I want to scold others.” “I will never invest in FF”. The latter even wrote an autograph letter, annoyed Jia Yueting misappropriated funds. These two experiences can be said to be typical representatives of the experiences of Jia Yueting’s investors and partners, but the lessons they have learned do not seem to serve as much warning to the latecomers.
“There are still people who are willing to believe in Jia Yueting and FF. These people are confident investors with a relatively high risk appetite.” Zhang Junyi explained this question: “From the perspective of FF, it is fair to say that this company has technology. , With talents, R&D capabilities, and models with mass production conditions. More importantly, it respects the law of the development of the automobile industry and grows gradually. At least it has not launched 15 cars in one go like a real estate car company.”
“From Jia Yueting’s point of view, although he is now frustrated, there is no doubt about his ability. The business philosophy he put forward is also very forward-looking. Many of the successful new forces in China have also borrowed from FF and Jia Yueting. Experience and lessons.
In addition to the above-mentioned investors, those who are willing to take the risk of investing in FF are probably some enterprises that are urgent for transformation and local governments eager to make breakthroughs in the new energy automobile industry.
The latter’s representative is Zhuhai State Assets. On January 27 this year, FF and PSAC signed an agreement with the subscription investors. The subscribers agreed to subscribe for 79.5 million common shares at a subscription price of US$10 per share, totaling US$795 million. Among them, 17.5 million shares will be subscribed by investors in a certain tier Chinese city. At that time, the media revealed that the city refers to Zhuhai.
But unfortunately, according to the PSAC’s subsequent announcement, the first-tier cities in China that originally planned to invest in FF issued a notice on July 11, stating that the investment could not be completed due to foreign exchange reasons, and the investment quota it owned has been transferred to relevant investment institutions. Although the equity investment has not been completed, FF is still likely to regard Zhuhai as the headquarters of the Chinese market. After all, this company established a new company in Zhuhai as early as the end of 2020-Fafa Automobile (Zhuhai) Co., Ltd., which is wholly-owned by FF Hong Kong Holding Limited (FF Hong Kong Holding Limited), and its legal representative is Jia Chentao has a registered capital of 250 million US dollars.
The corporate representative who dares to invest in FF is Geely . On January 29 this year, Geely Holding Group officially signed a framework cooperation agreement with FF. The two parties plan to cooperate in the fields of technical support and engineering services, and explore the possibility of providing foundry services by the joint venture between Geely and Foxconn . More importantly, Geely has also participated in a small amount of investment in this FF listing. According to rumors, this listing is actually a “test” set by Geely for FF. After that, the former will provide 4000-6000 for the latter. Ten thousand yuan investment.
Although in the face of media inquiries, Geely’s official answer to the matter was “no comment”, but the company’s attitude is actually very clear-through this investment, Geely can obtain FF’s intelligent network connection. , Electric technology, and increase the layout in the field of smart electric; and FF can obtain car-making qualifications, can obtain financial support, can obtain more vehicle data, and can even be based on Geely’s existing SEA vast architecture to make it shorter The research and development cycle is to create an electric car for the public.
It’s just that this win-win situation is based on vision, financial strength and great courage and courage. After all, the examples of Sun Hongbin and Xu Jiayin are in the front. Who can guarantee that Geely will not become a member of the debt collection army in the future?
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/ff-hits-the-bell-and-goes-public-but-jia-yueting-can-only-applaud-from-the-audience-to-watch/ Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.