Original title: sudden! Jia Yueting FF company was shorted, institutions issued a 28-page report questioning car-building ability; US debt ceiling agreement reached, European and American stock markets continued to rise
Source: China Securities News
The Faraday Future company founded by Jia Yueting (hereinafter referred to as "FF Company") is "on the stand" again.
J Capital Research, an American short seller, released a short selling report on FF on Oct. 7, local time. Through site visits, analysis of the company's financial data and technical capabilities, and combined with a series of post-IPO capital operations, the agency said bluntly that "I don't think FF can sell even one car."
Although FF shares rebounded overnight, it had just hit its lowest level since its IPO the day before. As the US Senate agreed to extend the emergency debt ceiling to early December, the entire US stock market extended the previous day's rally last night, and the once-plummeting crude oil price was strongly reversed and closed higher again due to positive comments from the US Department of Energy.
28-page short selling report raises a number of questions
"after eight years of operation, FF failed to deliver a car and again said 'next year'. In addition, the company broke its promise to build plants in five locations in the United States and China, and the construction of a sixth plant has been repeatedly delayed." That's what J Capital Research said at the beginning of the short report.
A reporter from the China Securities News combed and found that J Capital Research's 28-page short selling report expressed its doubts about FF from many angles, such as the company's production capacity, capital operation performance, R & D investment, and Jia Yueting's own punishment in China, and other sources, including field research visits, company financial report data and public information, and so on.
Source: J Capital Research report
J Capital Research said that on Sept. 20, FF released a report saying it had made progress in manufacturing, but the former engineering director of FF interviewed by J Capital Research did not believe that the company's electric vehicles were ready to go into production. In addition, FF has promised to restart its Hanford plant in California and mass production of electric vehicles within seven months, but J Capital Research said in its report that it visited the plant three times from August to September and found little action, and company officials also said there were still engineering problems to be solved.
Source: J Capital Research report
FF officially landed on the Nasdaq market through SPAC on July 22nd, and the company's stock price broke on the first day of listing. J Capital Research pointed out in the aforementioned report that according to FF's own disclosure documents, the company will need an additional $1.4 billion in cash to meet its financial goals by 2024, which may lead to further dilution of investors' equity holdings after large-scale fund-raising and debt-for-equity swaps. J Capital Research also questioned whether anyone would be willing to continue lending to the company.
According to FF's Chinese website, Jia Yueting's title is the company's founder, partner, chief product and user ecology officer.
In the report, J Capital Research also combed out in detail the penalties imposed on Jia Yueting and his related companies in China and the corresponding lawsuits. A reporter from the China Securities News combed and found that in July, Letv Automobile (Beijing) Co., Ltd., a subsidiary of FF, was enforced by the court, with a total amount of 30 million yuan.
In terms of share price performance, FF rallied 9.80% to $8.40 a share overnight. But the company's shares fell to $7.40 a share the day before, the lowest since it went public.
Source: Wind
European and American stock markets and international oil prices continue to rise.
Judging from the overall market performance, US stocks continued to rise last night as the US Senate agreed to extend the emergency debt ceiling until early December.
By Oct. 7 local time, the Dow was up 0.98%, the Nasdaq was up 1.05%, and the S & P 500 was up 0.83%. European stocks as a whole also rose, with the UK's FTSE 100th index, France's CAC40 index and Germany's DAX index all closing up more than 1 per cent.
Source:Wind
On the news, according to CCTV News, on October 7 local time, U.S. Senate Majority Leader Chuck Schumer announced that the Senate had agreed on an agreement to extend the emergency debt ceiling to early December. the agreement will prevent the US government from defaulting on its national debt in mid-October. Earlier, US Treasury Secretary Yellen had warned Congress that the ceiling needed to be raised by October 18, otherwise the United States would face the risk of historic default. But measures to raise or suspend the debt ceiling were once opposed by Republicans.
In terms of commodities, international oil prices plunged in intraday trading last night, but international oil prices rose again as the US Department of Energy said it had no plans to develop oil supplies and did not seek to ban crude oil exports. Light crude for November delivery on the New York Mercantile Exchange rose 87 cents, or 1.12 per cent, to $78.30 a barrel, while London Brent for December delivery rose 87 cents, or 1.07 per cent, to $81.95 a barrel, according to Wind data.
Citic Construction InvestmentFutures said that although the bullish sentiment in the market due to the accumulation of US crude oil for two consecutive weeks and the increase in natural gas supply in Russia last week may continue to put pressure on oil prices, the data show that the current global oil inventory is lower than the level of the same period in 2018. If global oil inventories enter the accumulation stage, the price of Brent crude oil can hold on to the $80 per barrel mark will be in jeopardy. However, if the supply gap cannot be effectively alleviated within this month, there is not much room for oil prices.