Faraday Future To Go Public as Zhuhai State-Owned Assets Pulls Out

(Source: VCG)

According to a document submitted by Faraday Future to the US Securities Regulatory Commission on July 15th, the cornerstone investors who initially planned to invest 175 million US dollars will not take a stake in the company.

The investor comes from “a first-tier city in China”, which, according to Caixin.com, is Zhuhai city in Guangdong Province. It was earlier reported that the State-owned Assets Supervision and Administration Commission (SASAC) of Zhuhai coordinated the investment in FF by Gree Group and Huafa Group, two state-owned-backed businesses in Zhuhai. A person close to the SASAC said that the aforementioned SASAC-backed firms only contacted and communicated with FF, without taking substantial actions.

Faraday Future will be officially listed on NASDAQ on July 22nd, local time in the United States. Evergrande holds 20% shares of FF20%.

On June 24, 2021, Faraday Future announced that the US Securities and Exchange Commission (SEC) had approved PSAC’s merger plan and that it would be listed on Nasdaq Stock Exchange with ticker symbols FFIE and FFIEW. The originally planned listing time was July 21st.

SEE ALSO: EV Maker Faraday Future Goes Public on Nasdaq via Merger with PSAC

So far, FF91 has gathered more than 14,000 orders. Faraday plans to start the mass production of FF91 at its Hanford factory in California after 9 months of completing its fundraising, with an estimated annual production capacity of 10,000 units. Its South Korean Gunsan factory to be built in 2023 is expected to have a production capacity of 270,000 units per year. In 2025, its joint venture factory with Geely will have a capacity of 100,000-250,000 units/year. Meanwhile, the construction of Zhuhai factory will also increase future production capacity.

Faraday Future said in February that FF 91 will be released in Q1 and start selling in Q4 of 2022. Bi Fukang, CEO Faraday Future, said: “The production capacity of FF 91 is mainly to prove that we have the ability to deliver products to users.”

Among the existing shareholders, Evergrande Group took a stake in Faraday Future with USD $2 billion in 2018. However, a disagreement emerged between the two. After mediation, the domestic assets of Faraday Future are set and owned by Evergrande, while its overseas assets continue to be owned by the company. Evergrande has since cut off its investment, with Faraday Future going through many rounds of financing. Evergrande now still holds 20% of equities in Faraday Future.