On May 30th, Jia Yueting released a video clarifying the significant misunderstanding caused by FF's total share capital increasing from over 40 million shares to over 400 million shares.
Regarding why stock trading software shows that FF's total share capital has increased nearly tenfold overnight, from over 40 million shares to over 400 million shares, Jia Yueting explained that the technical reason is due to the delayed release of the annual report, Since the submission of the shareholder meeting documents at the beginning of this year until the release of yesterday's annual report, FF has not disclosed the number of shares in the past five months. Therefore, the securities platform is unable to update the latest data, causing a misunderstanding that stocks have been diluted tenfold overnight.
Jia Yueting said that in fact, these shares have been gradually issued in multiple batches over the past four months. In fact, the number of shares held, the market value of shares held, and the proportion of shares held have not changed before and after the release of the annual report.
Jia Yueting mentioned that in the past six months, the company has experienced a very difficult and severe shortage of funds. In recent months, it has been unable to even pay rent and has almost been driven out of the company headquarters that was purchased during its founding.
These original institutional investors have been continuously helping the company throughout its life and death. After selling the stocks previously issued by the company, they quickly reinvested most of the proceeds back into the company, saving it from delisting.
At the same time, the company has also taken a series of cost reduction measures, including salary reductions for all employees and even the minimum wage. Everyone in the company has made tremendous sacrifices to save the company. In addition, because of the previous issuance of the above-mentioned stocks, everyone was able to work together with the original institutional investors, and the company has the opportunity to be reborn today.
Jia Yueting emphasized that, FF company did not issue arbitrage. I believe that with the joint efforts of Chinese and American retail investors, we can definitely overcome malicious short selling and jointly promote the success of FF.
In addition, have the company and its original institutional investors engaged in transactions regarding the nearly 400 million shares issued by the company before May 10th and already in circulation after the start of the 513 round?
Jia Yueting responded that firstly, the company did not participate in the above-mentioned transaction. According to the financial report disclosure, the cash balance on May 23 was 5 million US dollars, which also confirms that the company did not issue arbitrage.
Secondly, on May 10th, the company's outstanding shares reached nearly 400 million, and the original institutional investors have sold all their shares in the past few months and entered the secondary market for circulation. Therefore, after May 13th, these investors cannot trade the aforementioned shares.
Jia Yueting also said, "After 513, many retail investors expressed willingness to voluntarily lock up positions to support the company. In order to cherish the confidence of hard-earned investors, the company made a decision to stand more firmly with all retail investors. After May 10th, the company has never accepted any new share conversions, and even in the future, there will be no new share issuances unless approved by the shareholders' meeting to increase the total authorized number of shares. The company will be more determined to protect the interests of retail investors in the future. I believe that with the joint efforts of Chinese and American retail investors, we can overcome malicious short selling and jointly promote the success of FF."
On May 28th local time, Faraday Future's official website disclosed its full year performance for 2023. The report shows that the company's annual revenue for 2023 was $800000, with an operating loss of $286 million. The operating loss in 2022 was 437 million US dollars. This change is due to a significant reduction in operating expenses, from $244 million in 2023 to $437 million in 2022. The improvement in operating expenses this year is mainly due to the company's completion of product development and transition to sales through manufacturing and production, resulting in a decrease in research and development expenses. The net loss for 2023 improved from $602 million in 2022 to $432 million.
As of December 31, 2023, Faraday's future total assets were $531 million and total liabilities were $302 million, while as of December 31, 2022, its total assets were $529 million and total liabilities were $328 million.
As of December 31, 2023, Faraday's future cash balance was $4 million, including $2 million in restricted cash. By contrast, as of December 31, 2022, cash was $17 million. As of May 23, 2024, the company's cash position was approximately $5 million, including $2 million in restricted cash.
FF pointed out in the report that although Faraday has already started delivering FF 91 products in the future, the demand for this model and related services is insufficient, coupled with pressure from vehicle service and warranty costs, intensified market competition, deterioration of macroeconomic environment, changes in regulatory environment, and other risk factors, the company may continue to suffer huge losses and may never be able to achieve and maintain profitability.
As of the close of the US stock market on the 30th, Faraday's future stock price was $0.444, down 62.05%.