- An open letter from Matthias Aydt, Global CEO of FF, and YT
Jia, Founder and Chief Product and User Ecosystem Officer.
Faraday Future Intelligent Electric Inc. (NASDAQ: FFIE)
(“Faraday Future”, “FF” or “Company”), a California-based global
shared intelligent electric mobility ecosystem company, today
released an open letter from Matthias Aydt, Global CEO of FF, and
YT Jia, Founder and Chief Product and User Ecosystem Officer.
Dear FFIE Stockholders and Investors,
Beginning in August, we entered the revenue generation phase,
established a closed-loop operation from user acquisition and
delivery to user operations, and began the process of adding
industry leaders and partnering with high-profile celebrities like
Chris Brown, Derek Bell, Jason Oppenheim as FF users and
Co-Creation Officers. There have been significant changes in FF’s
business foundation, including the addition of a new management
team that collectively boasts the strongest capabilities in the
history of FF. We believe that during this critical period for
business growth, the Company is now structurally best positioned
for the development phase since its inception, subject to financing
availability.
Protecting stockholder interests
Although the Company has successfully achieved numerous
significant milestones and built a strong structural foundation,
its stock price and resulting market capitalization have reached
the darkest moment. The Company’s current market capitalization is
equal to around 1% of the approximately $3 billion of cash invested
into the business. We feel a profound sense of pain and
disappointment and believe that many fellow stakeholders, including
public investors who love the Company, share this same feeling.
The Company is developing a series of measures to help identify
and, if found, combat potential abusive or illegal short-selling
activities. We also continue to engage with potential institutional
investors and strategic investors to address the capital
requirements for production ramp-up. In addition, we aim to enhance
our supply chain management capabilities and actively implement
cost control actions, along with a series of other initiatives
aimed at increasing our Company’s value. Below is a summary of
actions we are taking to protect stockholder interests.
Six measures the Company is taking to protect stockholder
interests.
The Company is diligently working to restore market confidence
and accelerate the achievement of its strategic objectives,
including taking the following actions:
- FF has officially engaged with Shareholder Intelligence
Services LLC, a leading public company service provider, to obtain,
aggregate, track, and analyze shareholder trading information, that
will initiate investigations into potential illegal short selling.
We will consider all remedies available to us, including potential
litigation if necessary.
- Executive leaders of the Company intend to increase their
holdings, demonstrating their confidence in the Company’s
development.
- The Company continues to actively engage with potential
strategic investors.
- The Company is undergoing an organizational upgrade to meet the
opportunities and challenges as the Company enters a new phase of
development.
- The Company is continuing to take steps to reduce operational
and supply chain costs to support its strategic objectives,
including capacity ramp-up.
- The Company intends to invite professional media outlets to
both visit FF as well as for interviews and in-depth product and
technology experiences, enabling the broader public to gain a
better understanding of FF’s current development status and its
true value.
Today’s FF has undergone a fundamental transformation compared
to August, 2023. The Company achieved two major milestones
associated with the most uncertainties and risks since its
inception: (1) we completed all compliance procedures required for
mass production and delivery in the United States; and (2) received
all necessary parts from our supply chain and started delivering
cars to our users. We believe FF is now entering a promising phase
of development, subject to funding availability.
Since FF GP nominated the majority of the board members
around the end of 2022, FF has made 30 significant
improvements.
Below is a review of these 30 significant
improvements.
End of 2022
Governance: The board of directors was transformed, with a focus
on governance and compliance, with fiduciary duties guiding its
decision-making.
Strategy: Focused on the Company’s core strategy as the pioneer
of the Ultimate AI TechLuxury Spire market.
Business: Comprehensively updated the delivery system for the FF
91 2.0 Futurist Alliance.
January 2023
US-China dual DNA and dual home markets: Announced the signing
of a non-binding cooperation framework agreement with the China
Huanggang Government for the promotion of the Company’s dual-home
market strategy.
February 2023
Capital and Finance: Secured $135 million of financing
commitments.
March 2023
Production: FF ieFactory California SOP production
commences.
April 2023
Production: The first FF 91 2.0 Futurist Alliance production
vehicle rolled off the line.
May 2023
Technology & Product: Leveraging the breakthroughs in
emerging GPT AI technology, FF released the world’s first
in-vehicle generative AI products and technology.
Built an “FF AIHyper 6x4 2.0 architecture” based on the “New
Four Trends” of industrial transformations – “All-AI”, “All-Hyper”,
“All-Ability”, and “Co-Creation”, and launched the FF 91 2.0
Futurist Alliance, an “Ultimate AI TechLuxury” “All-Ability
AIHypercar,” combining hyper performance, safety, and comfort.
Capital: Signed a definitive agreement for unsecured convertible
note financing (in which funding commitments are subject to certain
closing conditions), approximately $30 million of which was funded
by waiving closing conditions, which we believe shows the
investors’ confidence and support, with FFGP – comprised of FF
current and former executives— as the anchor investor.
June 2023
User Ecosystem: The first 3 FF 91 2.0 users and Developer
Co-Creation Officers participated in the “FF Track Co-Creation
Day.”
Product & Technology: The FF 91 2.0 Futurist Alliance
debuted at Willow Springs Raceway and achieved a remarkable lap
record for EVs weighing 6,000 pounds or more of 1 minute and 35
seconds.
Capital: Secured $105 million of financing, which includes an
additional funding commitment of $90 million plus the acceleration
of an existing commitment of $15 million; a portion of $105 million
has already been funded, and the rest is subject to the
satisfaction of certain closing conditions.
July 2023
Delivery Compliance: Successfully completed U.S. crash testing
and met all safety-related regulatory certification
requirements.
Achieved full compliance with U.S. new vehicle sales delivery
requirements.
Received internal approval to initiate Phase 2 Co-Creation
Delivery.
Formed a closed-loop operation, marking the beginning of a new
stage of development.
August 2023
Supply Chain: Received all necessary parts for initial
deliveries.
User Ecosystem: Established the transformative User Acquisition
and User Operation 1.0 system.
Delivered the FF 91 2.0 Futurist Alliance to the first spire
user and Developer Co-Creation Officer.
Derek Bell, a five-time Le Mans 24 Hours world champion, along
with champion racer Justin Bell and others, became FF Developer
Co-Creation officers and next FF 91 2.0 owners.
Held the first “FF Developer Co-Creation Festival” at the Pebble
Beach Concours d’Elegance.
Product: Achieved a remarkable 350-mile range on a single
charge, covering the distance from Silicon Valley to Los
Angeles.
Capital: Secured additional funding of $16.5 million in the
unsecured notes to support the Company’s Phase 2 delivery and sales
and service preparation of its FF 91 2.0 Futurist Alliance;
Effectuated Reverse stock split and filed registration statements –
which primed the Company for additional financing to support the
production ramp-up of FF 91 2.0 Futurist Alliance and the expansion
of the Company’s sales & service network.
Management: Welcomed new management team members with the
strongest collective capabilities in its 9-year history.
September 2023
User Ecosystem: Delivered additional cars to spire users
including U.S. real estate mogul Jason Oppenheim.
Product: The FF 91 2.0 Futurist Alliance set a lap record in the
SUV and crossover class at Button Willow Raceway.
Technology: Hosted the “FF 919 Developer AI Co-Creation
Festival” to advance FF aiRacing technology.
Capital: Regained NASDAQ compliance with NASDAQ’s minimum bid
requirements.
Announced a proposed stock purchase plan for core management
members.
October 2023
User Ecosystem: New vehicles are scheduled to be delivered to
four FF 91 2.0 Spire users and Developer Co-Creation Officers,
including our Founder and Chris Brown.
We believe that it is evident FF has essentially established all
the foundations for substantial growth, subject to obtaining needed
funding. We’ve triumphed over the darkest moments many times
before, and FF is now bolstered by these 30 achievements. With our
unique DNA and the support of our stakeholders, we’re confident
that we stand on the cusp of an extraordinary surge of energy.
Nevertheless, what has been incredibly frustrating is that
despite FF being the pioneer and leader of the “Ultimate AI
TechLuxury” spire market, having created and delivered the world’s
most disruptive “All-Ability AIHypercar” FF 91 2.0, and making
substantial progress, the Company’s valuation has been
substantially reduced and we believe does not reflect the Company’s
actual value. This is unacceptable to us and the stakeholders who
hold a deep affection for FF, and we have received numerous
requests for the Company to respond. Even though some of our
leaders including our Founder YT received personal threats and
unfair treatment, we are not getting distracted from progressing
the Company to a successful future. We feel the utmost urgency and
are profoundly sorry for not delivering the value you deserve. We
are also passionately committed to promoting the maximization of
value.
Matthias Aydt and YT Jia
Special note from Founder YT Jia
Nine years ago, I crossed the Pacific Ocean to Los Angeles,
California, to found FF. I was all in. You can only imagine the
challenges of a Chinese entrepreneur starting a business in this
foreign land, especially in the Ultimate AI TechLuxury EV business,
the crown jewel of it all. I have endured some of the most terrible
experiences, some you can imagine, and others beyond your wildest
imagination. The Company and I have experienced and overcome so
many difficulties and life-and-death challenges over the years. Our
setbacks and successes have been on full display for everyone to
witness. I want to express my gratitude to those who care about FF.
In fact, many people have sent me private messages through various
channels. I’ve been reading them, reflecting on them, and asking
myself tough questions. I have also been absorbing and listening to
valuable advice and putting it into action. Many fellow
entrepreneurs have mentioned that my entrepreneurial journey has
inspired them to keep going. In fact, I would say that the many
words of encouragement you’ve sent me are uplifting and inspiring
me to fight for shareholder and stakeholder value with FF without
any hesitation.
Thank you.
YT Jia
A video of the open letter can be viewed on the FF App or at the
following link:
English version from Matthias Aydt:
https://youtu.be/9oIN4XHuGzo
Chinese version from YT Jia:
https://youtu.be/My9fZHNt6v8
Users can preorder an FF 91 2.0 vehicle via the FF Intelligent
App or through our website (English):
https://www.ff.com/us/preorder/ or (Chinese):
https://www.ff.com/cn/preorder/
Download the new FF Intelligent App:
http://appdownload.ff.com
ABOUT FARADAY FUTURE
Faraday Future is the pioneer of the Ultimate AI TechLuxury
ultra spire market in the intelligent EV era, and the disruptor of
the traditional ultra-luxury car civilization epitomized by Ferrari
and Maybach. FF is not just an EV company, but also a
software-driven intelligent internet company. Ultimately FF aims to
become a User Company by offering a shared intelligent mobility
ecosystem.
FOLLOW FARADAY FUTURE
https://www.ff.com/ https://www.ff.com/us/mobile-app/
https://twitter.com/FaradayFuture
https://www.facebook.com/faradayfuture/
https://www.instagram.com/faradayfuture/
www.linkedin.com/company/faradayfuture/
FORWARD LOOKING STATEMENTS
This press release includes “forward looking statements” within
the meaning of the safe harbor provisions of the United States
Private Securities Litigation Reform Act of 1995. When used in this
press release the words “estimates,” “projected,” “expects,”
“anticipates,” “forecasts,” “plans,” “intends,” “believes,”
“seeks,” “may,” “will,” “should,” “future,” “propose” and
variations of these words or similar expressions (or the negative
versions of such words or expressions) are intended to identify
forward-looking statements. These forward-looking statements
involve a number of known and unknown risks, uncertainties,
assumptions and other important factors, many of which are outside
the Company’s control, that could cause actual results or outcomes
to differ materially from those discussed in the forward-looking
statements. Important factors, among others, that may affect actual
results or outcomes include, among others: the Company’s ability to
continue as a going concern and improve its liquidity and financial
position; the Company’s ability to execute on its plans to develop
and market its vehicles and the timing of these development
programs; the Company’s estimates of the size of the markets for
its vehicles and cost to bring those vehicles to market; the rate
and degree of market acceptance of the Company’s vehicles; the
success of other competing manufacturers; the performance and
security of the Company’s vehicles; potential litigation involving
the Company; the Company’s ability to satisfy the conditions
precedent and close on the various financings described elsewhere
by the Company; the result of future financing efforts, the failure
of any of which could result in the Company seeking protection
under the Bankruptcy Code; general economic and market conditions
impacting demand for the Company’s products; potential cost,
headcount and salary reduction actions may not be sufficient or may
not achieve their expected results; and the ability of the Company
to attract and retain employees, any adverse developments in
existing legal proceedings or the initiation of new legal
proceedings, and volatility of the Company’s stock price. You
should carefully consider the foregoing factors and the other risks
and uncertainties described in the “Risk Factors” section of the
Company’s Form 10-K/A filed with the Securities and Exchange
Commission (“SEC”) on August 21, 2023, and other documents filed by
the Company from time to time with the SEC. These filings identify
and address other important risks and uncertainties that could
cause actual events and results to differ materially from those
contained in the forward-looking statements.
Forward-looking statements speak only as of the date they are
made. Readers are cautioned not to put undue reliance on
forward-looking statements, and the Company does not undertake any
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231015501173/en/
Investors (English): ir@faradayfuture.com
Investors (Chinese): cn-ir@faradayfuture.com
Media: john.schilling@ff.com
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