According to the financial report, FF will have a net loss of US$516 million in 2021, of which total expenses will be US$354 million, including US$175 million in R&D investment, US$17.12 million in sales and marketing expenses, and US$97.91 million in administrative expenses.
According to FF, the main reasons for the increase in operating expenses are: an increase in engineering, design and testing (“ED&T”) services as the company rehired suppliers and made significant purchases for ED&T services to advance the manufacture of the FF 91; headcount and Significant increases in employee-related expenses; licensing fees with sub-licensing rights paid for use of one of Geely Holding’s technology platforms; increases in professional services and legal fees;
In addition, due to the redesign of FF 91-related components and the implementation of the FF cost reduction program, the loss of certain construction-in-progress related to the FF 91 program, mainly supplier tooling, machinery and equipment, is waived.
FF posted a net loss of $147 million in 2020, of which total expenses were $64.94 million.
The change in FF’s net loss in 2021 is due to a significant increase in operating expenses; changes in fair value measurement including conversion premiums for notes payable and notes payable to related parties, changes related to original issue discount adjustments and share options issued for specific borrowings Changes in fair value of certificates; and losses on disposal of notes payable to related parties, notes payable, and payments to suppliers due to the commitment to issue A at a price below the fair value on the disposal date upon completion of the merger with Property Solutions Acquisitions Corp. in July 2021 Common stock-like disposals of certain related party notes, notes payable and vendor payables within the trust.
FF said the pilot equipment installation was completed in the fourth quarter of 2021 at the pre-production build area at the Hanford manufacturing facility. The Hanford manufacturing facility covers approximately 1.1 million square feet and is expected to have the capacity to support the production of 10,000 vehicles per year when completed. Based on the current schedule, FF management expects production at the Hanford manufacturing facility to begin in the third quarter of 2022.
Car bookings as of March 31, 2022 stood at 401 units. A deposit has been paid, which is fully refundable and non-binding, and the vehicle booked is the FF 91 Futurist Alliance and/or FF 91 Futurist originally sold by the company to customers in the United States and China.
“We made significant progress in the fourth quarter as we reached several important milestones with our Hanford manufacturing facility, new Tier 1 suppliers and new partnership agreements,” said Faraday Future’s global CEO, Bi Fukang. In the logistics and supply chain environment, we are working closely with our partners to continue delivering on schedule in the third quarter of 2022.”
Dr. Bi Fukang further stated: “In early 2022, we signed an agreement with Myoung Shin to manufacture the FF 81 in South Korea to ensure that we will achieve high-volume production and cash flow breakeven in the future. We have also obtained a sales license in California, allowing us to Selling our vehicles online nationwide. We remain confident of delivering the FF 91 in the third quarter of 2022, when we expect Faraday Future to redefine the state-of-the-art smart electric vehicle.”
Dr. Beverly added: “A special committee of independent directors completed a previously announced investigation into allegations related to historical disclosure and forwarded its findings and recommendations to the company’s board of directors. The board accepted the findings, and remedial measures were implemented. It is going well. On behalf of the entire management team, I would like to thank the Special Committee, our financial and legal advisors, and members of the Board of Directors for their hard work and commitment to holding the company to the highest standards of ethics and conduct. I would also like to thank all of my colleagues, supply business and investors. I believe this investigation and the changes we are making will help us build a stronger and better company.”
As of December 31, 2021, the total value of assets held by FF was $907 million, of which cash held was $505 million, restricted cash was $25.39 million, and Deposits was $63.37 million.
As of March 31, 2022, FF’s cash balance was $276 million. The decrease in cash is due in part to the planned repayment of $97 million of notes and interest payable between December 31, 2021 and March 31, 2022.
Evergrande holds 20.5% and is the second largest shareholder
As of April 30, 2022, Evergrande held 20.5% of the shares through Season Smart, making it the second largest shareholder; FF Top Holding held 36.2%, and Founding Future Creditors Trust held 6.1%;
FF shareholding structure as of April 30, 2022
FF Top Holding is controlled by Faraday Future’s management. The Faraday Future Management Committee holds 80% of FF Top Holding through 100%-owned FF Global Partners, and the other 20% is held by Jia Yueting’s creditors in trust.
Jordan Vogel owns 1.6%. Jordan Vogel was formerly Chairman and Co-CEO of Property Solutions Acquisition Corp, a “special purpose acquisition company” (SPAC).
The reason why Evergrande became a shareholder of FF was that it became a shareholder of FF in 2018, but Xu Jiayin, the founder of Evergrande, soon fell out with Jia Yueting, the founder of FF. On December 31, 2018, Evergrande reached a restructuring agreement with FF controlled by Jia Yueting.
The reason why Jia Yueting does not directly hold FF is that in September 2019, Jia Yueting resigned from the position of FF CEO and took up the position of CPUO (Chief Product & User Officer, Chief Product & User Officer).Officer). FF subsequently appointed Dr. Bi Fukang as global CEO.
In July 2020, Jia Yueting’s personal bankruptcy and reorganization application in the United States was completed, the reorganization plan officially took effect, and the creditor trust was officially established and began to operate.
FF lifts the delisting crisis
FF is listed on Nasdaq in July 2021. The combined transaction will provide FF with approximately $1 billion in funding, including $230 million in cash held by PSAC in trust, for mass production and delivery of the first flagship product, the FF 91, within 12 months of closing Provide financial support.
In October 2021, FF was maliciously shorted by short-selling agency J Capital Research (Meichkin Investment Consulting Company). In the short report, J Capital Research stated that FF will never sell cars, and said that FF company founder Jia Yueting still controls FF company through the FF global executive committee.
After the short-selling report came out, Jia Yueting responded immediately. Jia Yueting said that the short-selling agency’s remarks were cold and nonsense.
However, in February 2022, FF said that Brian Krolicki, the head of the company’s top management body, has stepped down as chairman due to certain weaknesses in the company’s control and culture.
FF said that the board of directors appointed independent director Susan Swenson as executive chairman, FF global CEO Dr. Bi Fukang, and FF company founder, chief product and user ecology officer Jia Yueting reported directly to executive chairman Susan Swenson, and the basic salaries of both were reduced by 25%.
In April 2022, FF received a letter from the U.S. Nasdaq Listing Eligibility Division stating that since FF has not yet filed its annual report on Form 10-K for the fiscal year ended December 31 (“Form 10-k”) . The company did not meet the continuation listing requirements of the Nasdaq Listing Rules.
On March 31, 2022, FF filed a notice of delayed filing of Form 12B-25 with the Securities and Exchange Commission, announcing that the company would not be able to file a Form 10-K within the allotted time, the announcement said. Additional time is required for the company to complete the additional investigation and remedial work recommended by the Special Committee of Independent Company Directors and to complete the company’s financial statements and related disclosures on Form 10-Q and Form 10-K for the period ended September 30, 2021.
Nasdaq also notified FF that failure to file Forms 10-Q and 10-K for the third quarter on or before May 6, 2022 will result in a notice of delisting of the company’s securities.
With the release of FF’s financial report for the third quarter of 2021 and the annual report for 2021, FF’s delisting crisis has been lifted.
As of now, FF’s stock price is $2.46 and its market value is $744 million, a far cry from the $4.5 billion it was listed on.
Recently, Rivian, an American electric vehicle company, also released a financial report. The financial report shows that Rivian will have no revenue in 2019 and 2020, and will have revenue of $55 million in 2021; net losses will be $426 million, $1.018 billion, and $4.688 billion, respectively. Dollar.
Rivian’s revenue in the first quarter of 2022 reached $95 million, with a net loss of $1.593 billion; in the same period last year, it had no revenue and a net loss of $414 million.
As of March 31, 2022, Rivian had cash and cash equivalents of $16.432 billion, compared to $18.133 billion in cash and cash equivalents a year earlier.
As of today, Rivian’s stock price has rebounded to US$26.7 one after another, with a market value of US$24 billion, but its market value has fallen by US$100 billion from its peak.
It started with Canoo, an electric car company. After going public, Canoo is struggling to survive.
The financial report submitted by Canoo shows that Canoo has no revenue for the time being. Canoo’s operating loss in the first quarter of 2022 was $140 million, compared with an operating loss of $97.07 million in the same period last year.
As of March 31, 2022, Canoo had cash and cash equivalents of $105 million, restricted cash of $3.45 million, assets and equipment valued at $224 million, and total assets of $420 million.
Canoo pointed out in the financial report that the company’s management conducted an analysis of the ability to continue as a going concern and found that there were significant doubts about the ability to continue as a going concern.