Written by Cláudio Afonso | LinkedIn | X
On Friday, as the stock price of the electric vehicle startup Faraday Future, sets to recover part of the losses from earlier this week, YT Jia, the Founder and chief Product & User Ecosystem officer published a video 24 hours after the previous statement from the CEO.
YT Jia criticises the “biased interpretations” from “certain media” and the “attacks by malicious short-selling institutions” that have been affecting the company’s performance in the capital markets.
When sharing the video on X, YT Jia wrote, “In the past few days, I believe that Faraday Future has once again experienced deliberate attacks by malicious short-selling institutions, as well as biased interpretations and rumors by certain media.”
In the video, available below, the founder said, “Over the past few days, FF may have once again faced deliberate suppression and rumors spread by malicious short-sellers and attention-seeking “clickbait”.
Later in the video, YT Jia emphasized the difficulties of the automotive industry especially in the United States devaluing the personal attacks he says he has been victim of.
“While the rumors and attacks directed at me personally are minor concerns, the significant losses suffered by retail investors deeply disappoint me. Starting a business is not easy, and making cars is even harder.”
“It is extremely difficult for a Chinese person to start a car business making cars in the United States. We truly appreciate everyone’s understanding and support. We also welcome all kinds of suggestions and constructive criticism as long as they are based on facts,” the founder added before clarifying three topics.
Faraday disclosed on Wednesday it had “preliminary discussions with several global OEMs and suppliers” on how the company can “help build a bridge between US and Chinese automotive industries through industrial coordination and collaboration”.
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On May 17, the stock price of Faraday Future skyrocketed to $3.89 although the earnings results reported earlier this week have plummeted the shares by 91 percent to $0.35 per share.
On Thursday, and in a reaction to a 62 percent tumble in the stock price in the previous day, the CEO Matthias Aydt posted a video clarifying some of the most asked questions by investors including dilution and the bankruptcy risks.
Following the video, the stock surged 27 percent as the company says that aims to provide a strategic updated “in the next month or two”.
Regarding the dilution, Aydt said the shares were gradually issued over several months to existing institutional investors, primarily through convertible bonds, to prevent bankruptcy and delisting amidst severe financial difficulties.
The chief executive emphasized the collective sacrifices made, including salary reductions and cost-cutting measures, which have positioned the company for a potential rebirth.
He also reassured that the company and original institutional investors have not engaged in transactions with the nearly 400 million shares post-issuance, reaffirming commitment to protecting retail investors’ interests.
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The company is expecting to provide additional details on the “US-China Automotive Industry Bridge Strategy” which reflects an adjusted corporate strategy by returning to the earlier two-brand setup to distinguish market segments.
Faraday admitted that the move will enable the integration of FF’s high value “Ultimate AI TechLuxury” solutions and features of its I.A.I technology into vehicles in a more affordable mass market product segments.
The California-based startup published on Tuesday its fourth quarter and full year financial results disclosing that it is withdrawing its production target guidance for 2024.
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Written by Cláudio Afonso | LinkedIn | X
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