The Faraday Future special committee said the short selling report was false and Jia’s base salary was cut by 25 percent

2022-05-17 0 By

FF claimed that the previous short agency report is not true.On February 2, the Paper news reporter learned from the OFFICIAL website of the US Securities and Exchange Commission (SEC) that the special committee composed of the independent board of Directors of Faraday Future (FF) has completed its investigation and filed 8-K documents with the SEC.According to the document, there was no evidence to support an earlier short report by J Capital Research.However, the Special Committee did find certain inconsistencies in FF’s statements to investors.Faraday Future said Brian Krolicki, former chairman of FF, had stepped down and Susan Swenson had taken over as executive chairman because of “certain deficiencies” in the company’s controls and culture.FF global CEO Fukang Bi and Founder, chief product and user ecology Officer Yuting Jia will report directly to Susan Swenson, and both will see their base salaries cut by 25%.At the same time, FF will also hire a Chief Compliance Officer (CCO) to submit dashed reports to the Audit Committee Chair, and will enhance corporate compliance policies and procedures.On October 7, 2021, J Capital Research issued a short report on FF, saying that FF was unlikely to sell a car.In a 28-page report, J Capital Research said FF had failed to deliver a single vehicle after eight years of operation and reiterated its commitment to “deliver next year,” adding that the company had broken promises to build five plants in the U.S. and China and had repeatedly delayed construction of a sixth plant.”Faraday Future had promised to restart its Hanford plant in California and mass produce electric cars within seven months, but found little action on three visits to the plant in August and September.”J Capital Research also said FF would need an additional $1.4 billion in cash by 2024 to meet its financial targets, but questioned whether anyone would be willing to lend to Faraday Future.FF denied the short report, but did not provide any material evidence to refute it.Jia Yueting, the founder of FF, called the short seller’s comments “cold food” and “nonsense” on his wechat moments, adding that it is not the first time J Capital Research has been slapped in the face.