FF car fraud was hammered, Jia Yueting told two big lies, this time cut the American chives

2022-07-18 0 By

In October 2021, American short seller J Capital Research publicly shorted Faraday Future (FF) and made a number of allegations in its short selling report.At the end of the report, J Capital Research even said, “I don’t think FF will be able to sell a single car.”In the face of such sharp short behavior, seeing the car dream is about to come true Jia Yueting quietly responded: cold rice hot fry, nonsense.At the same time, Jia said Faraday Future will debut with a “new species” in July 2022.Unfortunately, there were surprises ahead of the debut of this “new species”.It was Mr Jia, not J Capital Research, who was slapped in the face.Over Chinese New Year, Faraday Future released an investigation that made it clear that there were some inconsistencies in the statements made by FF investors.The author learned that although these “inconsistencies” were exposed, it was just what J Capital Research wanted, but it also proved that many allegations in J Capital Research’s short selling report were not based on facts.However, at this time, few people care about J Capital Research’s short report whether there is evidence, more people are watching FF car fraud was hammered.What is particularly dramatic is that it was Faraday Future that set up an independent special investigative committee after J Capital Research published its short selling report.Therefore, the committee released the investigation report of the move, was once regarded as “self-exposure” inside and outside the industry.So what is Faraday Future pretending to be?Mr Jia told two more big lies: first, about Faraday Future’s inflated order book.J Capital Research’s short note, while questioning the number of Faraday Future FF91 orders, did not elaborate.After an investigation, the independent special investigation Committee found that Faraday Future had paid for only a few hundred of the “over 14,000” FF91 reservations listed in its prospectus. The rest were unpaid orders.Conceptually, unpaid orders do not count as pre-orders, so Faraday Future is suspected of overstating orders in its prospectus.In addition, I recall that J Capital Research’s short report suggested that 78% of these orders were from the same company.That means Faraday Future is playing left hand to right hand to create the appearance of the FF91’s popularity.However, the independent special investigation committee has not provided an explanation for this. It may not have verified the story, or Faraday Future may not have faked it to this extent.The second is Mr Jia’s involvement in Faraday’s future.Faraday Future’s announcement came after Mr Jia declared personal bankruptcy and gave the impression that he was willing to become a “migrant worker” to pursue his dream of building cars.However, the independent special investigation committee confirmed that Jia yuting’s status within Faraday Future is still important and has a strong voice.Jia is still a member of FF’s management committee, and wang Jiawei, vice president of global capital markets, is also a member of FF’s management committee and is Jia’s nephew.Obviously, Jia no longer seems to have control over FF, but FF is still in jia’s hands.That is why the findings of the independent special investigation committee were accompanied by remedial measures such as reducing Mr Jia’s salary and appointing a new executive chairman of the board.On the whole, Jia yueting is likely to fall into a more serious crisis of trust. Although jia yueting is the leek of The Americans, it also brings Faraday Future, which is carrying the dream of building cars, into the water.As a result, Faraday Future may indeed be, as short seller J Capital Research put it, “unable to sell a single car”.After all, this is not the first time Mr Jia has lost faith with consumers and investors.Mr Jia may still have a way to secure new financing, but consumers who buy Faraday Future cars cannot help but think of Mr Jia’s record, which they can’t count on one hand.However, in my opinion, after the order fraud, Jia may find it difficult to obtain new financing, because Faraday Future has little capital that investors can trust.Without financing, Faraday Future is unlikely to be able to mass-produce and commercialize the FF91 by 2022.After all, the new energy vehicle sector is in the phase of burning cash, according to jia yueting and FF’s current assets, the cash on hand should not support for a long time.Even if Mr Jia is lucky, and there are still people willing to believe him, Faraday Future faces a tough battle for the market.Compared with Faraday Future, nio, Xiaopeng and other new forces in car manufacturing have a better reputation and are more worthy of investment.In your opinion, can Jia yueting’s dream of building a car continue?