“You Zhongyu Ao out!” FF listed after the bell, a follow Jia Yueting went to the United States of staff received a number of congratulatory message from home. However, seeing these blessings from afar, he just politely replied with a “thank you”. Compared with the excitement of the domestic media, this employee is rather calm. He has been following Jia Yueting for 4 years in the United States.
July 23, Jia Yueting also continuously update a rare two Weibo : The first one is the Faraday future (FaradayFuture, referred to as FF) listed in the message. The other is the information that when FF went public, it promised to donate 1 million yuan to Henan. Behind Weibo , it seems that Jia Yueting has added some confidence in returning home.
After “Now everyone is still willing to believe his lies, and some even expect him to come back.” The other side, Jia Yueting and FF again “scraper”, a once loyal Jia Yueting letter is only Wang (a pseudonym), but does not rate FF Listing. He told Auto Market Story that this is Jia Yueting’s “Battle of the Beasts”, “When the domestic media stops paying attention to and reporting on FF, it means that everyone sees the true face of Jia Yueting.”
It is not the first time that Auto Market Story has focused its attention on Jia Yueting. This legendary and sad character always carries various labels: liar, Lao Lai, liar, king, strongman, dreamer . Jia Yueting has a famous saying, “Only dreams that have been ridiculed by 99% of people are qualified to talk about 1% of success.”
This time, let’s talk about the story of Jia Yueting’s suffocation of dreams. Is Jia Yueting’s dream worth our expectation?
01 Jia Yueting finally looked FF listed
In April 2014, Jia Yueting and two other founders co-founded Faraday Future in California, USA. Compared with the new Chinese car-making forces such as Weilai, Xiaopeng, Ideal, and Weimar, Jia Yueting’s dream of car-making awakened earlier. At that time, FF was also regarded as the most powerful electric car startup after Tesla .
In the next three years, Jia Yueting may have been busy with the ecological construction of LeEco, and there is not much information about FF. However, during this period of time, it can be seen that FF has maintained a steady development. On June 22, 2016, FF announced that it had obtained the California Autonomous Driving Test License.
In January 2017, FF released the first mass-produced electric vehicle FF91 at the CES exhibition, with information such as “fastest acceleration time of 100 kilometers”, “longest NEDC standard cruising range”, L3 automatic parking function and other information, which surprised the audience.
The story of Jia Yueting in 2017 is very exciting. It can be said that it is Jia Yueting’s “harvest year”. I have to mention the episode about Sun Hongbin. In spite of the financial crisis of the LeTV department, after six or seven hours of talks with Jia Yueting, the “good fellow” Sun Hongbin and Jia Yueting decided to give out real money and generously. In January 2017, Sun Hongbin’s Sunac invested in LeTV with a capital of 15 billion.
What Sun Hongbin did not expect was that the LeTV system was like a bottomless pit, swallowing 15 billion yuan in it. In the end, Sun Hongbin’s plan to “rescue” Jia Yueting failed, and he was choked with tears in public and “chopped his head” out.
And with Sun Hongbin saw as before the Jia Yueting, already reach the United States. In July 2017, due to LeTV’s loss, Jia Yueting went to the United States in a debt crisis and left the famous saying of “returning to China next week”. However, at that time FF also started its financing road due to a huge funding gap. This story is clearly stated by Auto Market Story in “Jia Yueting, No Need to Buy a Ticket to Return to China” . Jia Yueting has repeatedly run into a wall in the financing process because of his personal credit overdraft.
Fortunately, FF finally found a “curve to save the country” financing route and went public in the United States through PSAC. Different from a normal IPO, PSAC is called a “special purpose acquisition company”, which is essentially a backdoor listing. This time, Jia Yueting got good luck, and the US Securities Regulatory Commission finally agreed to Faraday’s PSAC merger plan.
On July 22, Faraday Future officially landed on Nasdaq under the stock code “FFIE”. The issue price was US$13.78/ADS, which opened at US$16.8, a 22% increase from the issue price, and the total market value was US$5.4 billion. However, the interesting thing is that one hour after the opening, FF announced a break on the first day of listing. As of now, FF’s stock price is US$14.82 and the market value is US$4.807 billion.
02 Will the listing of FF be Jia Yueting’s turnaround?
On the day of FF’s launch, Jia Yueting was like a mascot, participating in the live broadcast of FF’s launch throughout the entire process, promoting the FF91 product. However, when the bell was ringing on the market, Jia Yueting did not come to the stage to enjoy the joy of ringing the bell, but stood silently and applauded.
However, the FF listing information has triggered another interpretation of Jia Yueting’s fate: Is this a turnaround for Jia Yueting? After all, Jia Yueting himself also showed great confidence.
Jia Yueting mentioned on Weibo that the first phase of FF’s goal is to deliver the FF 91 Futurist Alliance Edition on time, with high quality, and high product strength to the hands of the global spire users within 12 months. The goal of the second phase is to gradually form a user ecosystem with the launch of subsequent models, the explosive growth of smart terminal revenue, and the rapid growth of ecological revenue at the same time, to become one of the leading companies in the mainstream high-value user market.
For FF91, Jia Yueting called it a spire product. “FF 91 Futurist and FF 91 are higher than Tesla Model X and S Plaid”, and will also achieve subversion of traditional ultra-luxury car brands such as S Maybach, Ferrari, and Bentley. Obviously, from the current positioning of FF91, it is not sold to ordinary users, but to their spire users, perhaps the Prince of Dubai, or the super rich.
However, simply equating the listing of FF with Jia Yueting’s “turning over” is obviously too sloppy. Auto Market Story found that the success or failure of FF has little relevance to Jia Yueting’s becoming a “worker” Jia Yueting.
In July 2020, Jia Yueting’s personal restructuring plan came into effect. According to the bankruptcy plan, the court established a creditor’s trust with the FF equity held by Jia Yueting, and the creditors have the ownership of the trust assets and the right to income. In other words, Jia Yueting no longer holds the equity of FF, instead all his creditors.
Today, Jia Yueting retains the title of FF founder, partner, chief product and user ecological officer. The first task is to “make FF a great company” and hope that the market value of FF will increase to pay off his debts.
From the current point of view, the better the development of FF, the more smoothly Jia Yueting will be able to complete the debt repayment task. According to the data, the debt-to-equity swap ratio of Jia Yueting’s creditors is 17.2%. According to the current market value of FF corresponding to US$4.807 billion, the market value of creditors is US$827 million. Other data show that before the FF reorganization, Jia Yueting’s debt was 2.96 billion US dollars. Therefore, when the market value of FF reaches approximately US$17.2 billion, Jia Yueting’s creditors will be able to recover their capital.
Of course, there is no specific data on Jia Yueting’s debt, if the amount of creditors is more than 2.96 billion US dollars. Then, only if the market value of FF is higher, can Jia Yueting’s creditors get away completely. Chen Zhe, a global partner of FF, bluntly stated that only if the market value of FF reaches a certain level and the creditors can cash out of the trust, (Jia Yueting’s debt) can be considered to be fully repaid.
Auto Market Story found that Jia Yueting’s ex-wife Gan Wei is also one of its creditors, holding a 7.2% stake in the creditor trust. Calculated according to the current market value of FF, the total amount is about 347 million US dollars. Of course, at this time Jia Yueting and Gan Wei have separated from each other. The two sides have never seen each other so far. The only connection between the two parties is 347 million US dollars except for the three children.
Of course, in addition to the urgent dream of repaying debts, Jia Yueting’s dream of building a car may also be extremely sincere. He is willing to fight for life to make FF a great company. So, what is the probability of FF success? From the perspective of strategy and product, Auto Market Story “FF ringing the bell to be listed, but Jia Yueting can only applaud from the audience” has conducted in-depth exploration, so I won’t repeat it here.
However, Auto Market Story found that the electric pickup company Lordstown Motors, the electric vehicle company Fisker, and the hydrogen heavy-duty truck company Nikola, which are also listed in PSAC, have not yet introduced a mass-produced model. It is worth mentioning that one year after Lordstown Motors went public through PSAC, its CEO and CFO have announced their departure.
03 Will Jia Yueting really return to China for his dream?
Of course, under the tide of electrification, after FF has experienced many difficulties, there is bound to be the possibility of success. Jia Yueting may plan to return to China after paying off his debts. In addition, Jia Yueting’s return to China is also closely related to FF’s Sino-US dual market strategy.
FF mentioned on many occasions that the Chinese market will be one of FF’s main battlefields. Jia Yueting clearly stated in his bankruptcy declaration “Working and Entrepreneurship, Restarting Life, With My Apologies, Thanksgiving and Commitment” that the FF China-US dual home strategy is the core mission of the next stage of his life.
In other words, whether Jia Yueting returns to China or not, FF must advance its business layout in China. The key steps of FF91 mass production and delivery are inseparable from the Chinese market. What’s more, the more people-friendly models FF81 and FF71 planned by FF will all rely on the Chinese market. It’s no wonder that in the live broadcast of FF’s launch, the QR code for scanning the QR code for car booking was displayed so thoughtfully for Chinese Leek.
However, the Internet is so forgetful. On April 13, the China Securities Regulatory Commission issued the “China Securities Regulatory Commission’s Market Banning Decision (Jia Yueting, Yang Lijie, etc. 5 Responsible Subjects)”, deciding to take lifelong securities market banning measures against former LeTV chairman Jia Yueting and imposing a fine of 241.2 million yuan , And disclosed many illegal facts about Jia Yueting.
Just three months have passed since Jia Yueting’s decision to falsify punishment. In the future, Jia Yueting will not be able to serve as directors, supervisors, or senior managers in any listed company or non-listed company. In other words, even if Jia Yueting returns to China, he can only be a hitter.
“In addition to bearing a fine of 241.2 million yuan, Jia Yueting will face compensation litigation within the next three years of statute of limitations.” Zhang Ming (pseudonym), a lawyer at a law firm in Hangzhou, told Auto Market Story about Jia Yueting’s 10-year financial fraud , The follow-up does not rule out the possibility of investigating his criminal responsibility.
Back in November 2017, some media exposed that LeTV was suspected of IPO fraud, and a number of issuance review committee members who participated in the fraudulent listing were taken compulsory measures. Among them, the first person to be investigated was in July 2017. Formally in July of that year, Jia Yueting went to the United States in the name of FF financing.
On October 31, 2017, Jia Yueting posted “Happy Halloween!” on social media, wishing everyone a happy Halloween. On the other side, someone has already been in jail for the LeTV fraud incident.
FF is on the market. It seems that many people have selectively forgotten Jia Yueting’s past, using the words of success and failure to portray him as a tragic hero who struggles for his dreams. From the perspective of empathy, we hope to see an entrepreneur at the bottom of the valley, after experiencing nine or eighty-one difficulties, the truth of success.
However, the fact is this, the honest-faced Jia Yueting, who talked about dreams and falsified for ten years, once made Sun Hongbin cry. Now, he said to return to China: that must be!
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/jia-yueting-suffocating-for-dreams-fighting-for-trapped-beasts/ 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.