Faraday's future stock price has seen its largest increase since going public.
On May 14th local time, the US stock market closed, and Faraday Future (FF) stock price surged by 367.54% to close at $0.285 per share; During the trading session, it rose nearly 490%, setting the highest increase for FF since its listing.
FF stated that this marks the beginning of the "FF Listing Qualification Defense War" being carried out by founder Jia Yueting, especially with the stock price skyrocketing by nearly 370%, which has given great confidence to the capital market and the company itself.
About a week ago, Jia Yueting, the founder and chief product and user officer of FF, released a video stating that he would consider co serving with FF's global CEO Matthias as the company's co CEO, and would start commercializing personal IP to make money and build cars. Together with the company's management team, he will take all feasible measures to strive for the company to maintain a compliant listing position and launch a battle to defend FF's qualification as a listed company.
However, in the afternoon, FF announced on its official US website that the relevant video was posted by Jia Yueting in his personal capacity, and the comments in the video were not approved by the company. The company's board of directors is currently not considering appointing Jia Yueting as co CEO.
Although the stock price has skyrocketed, it is an undeniable fact that FF has accumulated a heavy burden and is unable to return.
Previously, Jia Yueting stated in his video that in 2021, FF landed on NASDAQ with a market value of over 4 billion US dollars. However, SPAC directors used a large number of fictional short selling reports and other excuses to establish a special committee, which almost completely controlled the company. The nearly 1 billion US dollars raised from the IPO were almost burned out, and the production of FF91 was significantly delayed.
In addition, FF also mentioned that against the backdrop of the US government announcing tariffs on Chinese electric vehicles, FF's value as a bridge between China and the US for electric vehicles will be released.
The US government announced on the 14th that it will impose tariffs on Chinese electric vehicles and other products. On May 14th, the Chinese Ministry of Commerce emphasized that the US's increase in the 301 tariff violated President Biden's commitment to "not seeking to suppress and contain China's development" and "not seeking to decouple and cut ties with China", and also did not conform to the spirit of consensus reached by the two heads of state, which will seriously affect the atmosphere of bilateral cooperation. The US should immediately correct its erroneous practices and cancel the additional tariffs imposed on China. China will take resolute measures to defend its own rights and interests.
However, given FF's current situation, the concept of "bridge value" needs to be scrutinized.
Since Jia Yueting founded FF in 2014, the cumulative delivery volume of FF 91, the first mass-produced car of FF, has only exceeded ten vehicles.
According to data disclosed by FF, the company delivered 10 FF 91 2.0 Futurist Alliances in 2023, including one owned by Jia Yueting personally; On February 7th this year, FF announced the delivery of one new FF 91 2.0 Futurist Alliance.
However, in mid March this year, FF filed a recall plan with the US Highway Traffic Safety Administration, announcing the recall of 11 FF 91 2.0 units produced in 2023. The reason was that software errors may prevent the airbag malfunction warning light from coming on when the airbag control unit detects a system malfunction.
According to a previous announcement by FF, FF received a letter from NASDAQ on April 24, 2024, stating that the closing price of FF's stock was below $0.1 for ten consecutive trading days, which does not comply with NASDAQ listing regulations. Therefore, the NASDAQ exchange has issued an opinion on the delisting of FF's stock.
Recently, Jia Yueting released a video stating that he will work with the company's management team to take all feasible measures and strive to maintain the company's compliant listing status. He also mentioned that he will start commercializing personal IP, hoping to make some money as soon as possible, paying off some of the debt and rescuing the company, in order to supplement car manufacturing.