Jia Yueting’s FF faces financial difficulties after delivering three cars

According to news on September 28, Faraday Weilai recently welcomed its new CEO Matthias Aydt. He announced in a letter to all shareholders that the company has made significant progress in the research and development of the flagship model FF91 over the past year and is now ready to expand production capacity

After nine years of unremitting investment, Faraday Future has invested approximately US$3 billion (approximately RMB 21.9 billion) in research and development. In the third quarter of this year, the company successfully delivered three FF91 2.0 Futurist Alliance vehicles, which marked that the company has entered the revenue stage and formed a complete closed-loop business.

However, although the company is moving towards the milestone since its establishment, A critical stage, but it is also clear that it faces a series of challenges, including financing issues. In order to cope with these challenges, Faraday Weilai has submitted a registration application for the ATM financing plan. It plans to raise the required funds in the market by working with the investment banking team to provide more financial flexibility and diverse options.

Matthias Edet also noted that the company’s valuation could fall significantly, with it currently valued at around 30% of the recently announced net asset value . In order to stabilize its financial position, Faraday Future announced that it has entered into an ATM equity issuance and sales agreement, allowing the company to issue Class A ordinary shares from time to time as needed, with a total value not exceeding US$90 million. These funds will be used for the company's general working capital, as well as product and technology development, global sales and service network construction, production capacity expansion, repayment or repurchase of outstanding debt, capital expenditures, potential joint ventures, acquisitions and other business opportunities, etc. Multiple uses

According to the editor’s understanding, Faraday NIO is actively responding to challenges while continuing to advance its short- and medium-term strategic goals to maintain competitiveness in the electric vehicle market.

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