Jia Yueting, founder of Faraday Future (Nasdaq-CM:FFIE), announced an upcoming second brand at the first shareholder community day held at the company's headquarters. With this new brand, FF aspires to become a leader in price performance by bringing "luxury-mass-market" electric vehicles to market. While significant progress has been made, according to Yueting, further announcements on its second brand will have to wait.
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In late May, Faraday also announced that it plans to share details of a "US-China Automotive Industry Bridge Strategy" in later months. This strategy would entail how FF can leverage its dual-home-market positioning to leverage the strengths of US and China car companies, as well as their respective supply chains.
Faraday's only car, the FF 91, is currently priced at USD 309,000 and only 11 vehicles have been delivered to staff and influencers. The FF 91 was first unveiled in 2017 as a large crossover SUV that could accelerate from 0-60 mph in 2.4 seconds. Production officially began in March 2023, limited to 300 vehicle units worldwide.
Faraday had also planned to unveil a second model in 2018, a mid-size SUV named FF 81 to be built in California for the Chinese market. In February 2022, FF signed a manufacturing agreement with a South Korean firm that operates an ex-GM Korea factory, but no new progress has been announced since.
The company's vision is to become a pioneer in AI technology in the extreme luxury market of smart EVs and intends to subvert the dominance of traditional luxury supercars, such as Ferrari and Maybach.
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The founder said that the company's success path can be segmented into three key phases: defense, implementation, and evolution. At the moment, FF is in the first critical stage.
In recent days, FF faced the risk of delisting from Nasdaq and must soon meet the exchange's compliance requirements.
On June 24, the company's board of directors approved a reverse stock split proposal in the range of 1:2 to 1:40. For instance, if FF executes a 1:40 split, for every 40 shares an investor holds, he would receive 1 share after the reverse split and the price per share would increase proportionally.
On June 27, FF announced that the Nasdaq hearing committee approved the company's request to remain listed subject to submitting regular financial reports by July 31, 2024 and the FFIE stock trading at or above the exchange's specified minimum price by August 31, 2024.