On October 7th, J Capital Research, a renowned short-seller based in the United States (who has previously shorted Chinese stocks such as Uxin and BeiGene), released a bearish report on Faraday Future!
This lengthy 28-page report directly refers to Faraday Future as a “malformed lovechild” between Jia Yueting and Evergrande:
The report specifically points out that Faraday Future’s Hanford factory cannot start production in the short term and problems in its mass production process are still unresolved.
In January, Faraday Future claimed to have received a total of 14,000 pre-orders, however, the report shows that 78% of these orders came from the same company.
J Capital Research interviewed insiders at Faraday Future and claimed that the batteries may need to be recalled within 18-20 months, raising concerns about safety.
The report also states that Faraday Future’s financing since its public offering has primarily been used to fill its vacancies.
Faraday Future invested $2 billion into research and development but annual research investments for the company have been less than $30 million. During this time, the construction of the factory has also stalled, and the whereabouts of the financing remains a mystery.
The report also lists Jia Yueting’s “credit crisis” in China.
Today, Jia Yueting also responded on social media.
The rest, we leave to time.
🔗Information Source: J Capital Research
This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.