Boss Jia has got the investment from the SASAC of Zhuhai. Should he be able to return home this time?

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Wen / Chu Ji
Source: BT Finance (ID: btcjv1)
The man who has been financing but has been short of money, and his car which is “about to be mass produced” forever.
In 2020, Hefei will make more than ten times of its profits by relying on Weilai. This is a record investment, and many local governments are itching to see it. At the same time, new energy vehicles and related industries have become the pillar industries that governments at all levels are striving for.
Everyone wants to invest in new energy, but there is no good target. Since Zhuhai became a special economic zone, it has always wanted to dig some gold in the new energy industry chain.
At present, there are two new energy vehicle companies in Zhuhai: Yinlong new energy and ZTE intelligent vehicle, both of which focus on the bus market. In terms of passenger cars, Weilai, Xiaopeng, ideal, Weima and Baiteng have been taken away, and they have no chance to fight for them
The other dwarfs are tall, eh! I really find that there is a guy who has not returned home, holding the target of new energy which is scarce in the market.
FF + Zhuhai: win win cooperation
When it comes to making cars with new energy, boss Jia, who has not yet returned home, thinks, isn’t this another suffocation for dreams? I’m more professional about this. I don’t only have PPT, I really have a system. I’m short of money.
So boss Jia, who is poor in money, seems to have a turn for the better.
Let’s review FF’s big news this month
On January 11, according to a report by the Peng Bo news agency, FF is seeking to be listed on the US stock market through spac (Special Purpose Acquisition) and will merge with a company named property solutions acquisition Corp., with a valuation of about US $3 billion;
On January 25, according to Reuters, FF plans to build new factories in the first tier cities in China, with an initial capacity of 100000 units, and invite Geely to provide manufacturing services;
On January 26, the media said that FF is seeking a new round of financing in China. Geely plans to invest $30 million to $40 million in FF, and Evergrande group also participated in the financing negotiation;
On January 27, the media announced that FF had obtained State-owned investment from Zhuhai City, and the contact between Zhuhai and FF has already started at the end of 2020.
At this time, four years have passed since Faraday released its first mass production model ff91 in the future, and boss Jia’s “regular meeting” in the United States has been held for three and a half years (Jia Yueting, the founder of LETV, went to Los Angeles for “regular meeting” on July 5, 2017 and never returned home). It has been more than two years since FF 91 was first expected to be delivered in mass production.
During this period, Jia Yueting repeatedly said that FF 91 was “only one foot in front of the door” from mass production, but every time because of the shortage of funds, the foot in front of the door was hanging in the air and never kicked out.
When cash flow is tight, FF can always get financing at a critical moment to save the day. According to the financing information of Fafa automobile (China) Co., Ltd., a registered company of FF in China, after LETV Baolei and Jia Yueting went to the United States, FF still got seven rounds of financing, including five rounds of strategic investment and two rounds of bond financing.
However, in contrast, FF’s financing at the beginning of this year is particularly important. According to Nanfang +, the two leading state-owned enterprises in Zhuhai, Gree Group and HUAFA group, participated in the investment, but the investment amount was less than the 2 billion yuan previously reported by the media.
Even if the specific investment amount and terms of Zhuhai state-owned assets can not be disclosed for the time being due to the confidentiality agreement, the Zhuhai municipal government has basically expressed its attitude. FF will not only build a production base in Zhuhai, but also likely receive policy support.
(Fafa automobile (Zhuhai) Co., Ltd. was incorporated on December 14, 2020)
For Zhuhai, the relevant documents of Guangdong Province clearly put forward that it is necessary to optimize the regional layout of automobile industry with Guangzhou, Shenzhen, Zhuhai, Foshan and Zhaoqing as the focus, develop traditional automobile and new energy automobile together, and create automobile industry cluster with international influence; new energy and new energy automobile are also among the five hundred billion level emerging industry clusters Zhuhai city strives to build.
Therefore, boss Jia, who is one step ahead of PPT, does have something in his hand that is valued by local people. FF and Zhuhai belong to a win-win cooperation relationship. No matter how you feel about this, the great thing about Jia is that he once again came alive.
Many doubts
Although FF has made a lot of noise this time, it seems that it is determined to win. However, due to too many stories about “the wolf has come”, the market is still skeptical about whether FF can really achieve mass production.
The latest news about FF 91 appeared in early December last year. The official tweet of FF said that the pre production vehicle of FF 91 has been assembled and will join the existing test team to help continue to promote the FF 91 project.
In the official video of FF, the automation level of workshop and production station is not high, even simple. This makes people have to worry about the actual production capacity of FF and the quality control of its products. I don’t know if FF is deliberately hiding his own strength, or is it really lack of funds and manual work.
Even with the help of partners, FF 91 can be produced smoothly. Will consumers pay for it? According to the current CEO Bi Fukang, the pricing of FF 91 in China and the United States is 2 million yuan and 200000 US dollars respectively. With the performance of FF 91, I’m afraid the price will dissuade most people.
Pacific Auto Network’s question: “Jia Yueting’s ff91 sells for 2 million. Will anyone pay for it?” Next, a reply details the advantages of FF 91.
Among them, the styling design, opening method and comfort inside the car can be called humanization and attention to details, but these are not the points that consumers pay the most attention to the new energy vehicles with “a sense of future science and technology” – after all, there are too many comfortable models available at the price of 2 million yuan.

FF 91 entity car (not ppt) recently appeared at a luxury car show in the United States at the end of July 2019. According to relevant reports, the participating cars are equipped with 10 display screens inside and outside. There are screens in front of the co pilot and the rear seat, and the screen size on the rear seat can reach 27 inches. Maybe this will be the fashion trend in the future, but now it seems that the content of eye-catching is bigger, and consumers have to pay for these screens which are probably too flashy.
What really involves the core competitiveness is FF’s self-developed VPA and the 100 km acceleration in 2.39 seconds. From last year to this year, Tesla Model 3 and model y high-performance versions, which were sold very well, both accelerated more than 3 seconds per 100 km. FF 91 really leads the industry in this respect.
VPA allows FF to use battery strings, which is more flexible than the commonly used large battery. The battery strings can be increased or decreased according to the actual needs. For FF, the battery string allows the chassis to flex freely, which is suitable for various models, so as to reduce the cost when designing different models. However, according to the personal experience of Internet big V recruiting CAIDA Niumao, VPA may lead to poor riding experience.
When it comes to batteries, the range on FF’s official website still stays at 300 + miles (about 483 kilometers), which is out of place when many new energy vehicle companies go to the “1000 km club”. If its cell really has the highest energy density in the world, as the official website says, why doesn’t FF 91 increase its range? Don’t you think it’s necessary? Consumers willing to spend 2 million may feel it is necessary.
If consumers do not pay, even if they get financing from the primary market and have policy support, they may not be able to go to the secondary market smoothly; even if they are listed successfully, the capital of the secondary market will not pay.
Jia Yueting and Bi Fukang
Baidu search “Jia Yueting why can also finance”, many people are really interested in this issue. The relatively convincing answer is that Jia Yueting’s entrepreneurial process shows people that he has a dream and is willing to endure humiliation and continue to move forward in order to start a business. Referring to General Patton’s famous saying: “the mark of a person’s success is not the height he reaches the peak, but the rebound force when he falls to the bottom.” There is no doubt that boss Jia has a strong rebound ability.
But investment is not charity after all. What investors want is real income. Not so many people are willing to pay for dreams that they don’t know what can come true. The reason why FF can get a lot of money from last year to this year is that the industry of new energy vehicles is too hot, and everyone wants to get on the bus. However, FF has been struggling for so many years, which should be better than the auto companies from scratch. It is because there are too many dollars in the market now, and people are trying to put their money out. Therefore, many enterprises with poor fundamentals are rushing to go public recently, because they may really have no chance to miss this wave.
Some people think that after Jia Yueting released his personal bankruptcy reorganization plan in the United States in October 2019, Bi Fukang, the former vice president of BMW, will continue to operate FF after Jia Yueting, so the fundamentals of FF may be good enough to invest.
Bi Fukang is well known as “the father of BMW I8”. He overcame great pressure from both inside and outside to turn I8 from a concept into a reality. He really has the ability and courage. However, looking back on Bifukang’s entrepreneurial road, we don’t know if FF will become better or worse with Bifukang. Under his management, Baiteng “burned 8.4 billion yuan in three years and couldn’t build a mass production car”. Without announcing his resignation from Baiteng, he attended the new car launch of icornike in a high profile and took the post of CEO of FF a few months later.
FF plans to go public through spac, and the listing process is very simple: property solutions acquisition Corp. is a shell company with only cash (no actual business and other assets), which has been listed in the U.S. stock market. If it makes an agreement with FF, the shell company will exchange the cash on its account for FF’s equity, FF will directly obtain the listing seat, and the shareholders of the shell company will get a return.
It is worth noting that listing through spac does not need to disclose management information and financial information, and is more likely to rely on its beautiful future to attract investors’ money.
We sincerely hope that Jia Yueting, the “best product manager” and Bi Fukang, the “professional manager”, can have a wonderful chemical reaction and lead FF to really create surprises, rather than two people who are “good at” burning money just hit it off, reap once again in the capital market and then run away.
I hope boss Jia can really return home next week.
(statement: This article only represents the author’s point of view, not Sina’s position.)