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 6×4 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.
