In November 2017, FF welcomed Evergrande Health Industry Group, Ltd. as a key investor. In exchange for a 45% stake in the company, Evergrande committed $2 billion in funding toward FF’s efforts, including initial payments totaling $800m payment through early 2018, and the remaining $1.2 billion over time. Since then, under the leadership of founder and Global CEO YT Jia, FF has made incredible progress toward launching its flagship FF 91 vehicle. On August 28, 2018, FF celebrated on-time completion of its first pre-production FF 91 produced in its Hanford factory.
After its initial $800m investment, Evergrande agreed in July 2018 to make further payments earlier than originally agreed, including $500m of the $1.2 billion, in 2018. Contrary to what Evergrande has told the press and its shareholders, neither FF’s CEO YT Jia nor anyone else “manipulated” the board of Evergrande in reaching these agreements. In agreeing to bring a portion of its payments forward to 2018, Evergrande had a full understanding of why the funds were needed, and when they were needed, in order to achieve production and delivery of FF 91 in 2019. But contrary to what has been reported, Evergrande failed to make any of the promised additional payments beyond the original $800m investment, despite FF and its CEO complying with their obligations and meeting all required conditions for funding under the July 2018 agreement. Instead, Evergrande held the payments back to try to gain control and ownership over FF China and all of FF’s IP. At the same time, Evergrande is preventing FF from accepting any immediate financing from other sources.
Accordingly, the only reason “FF is trying to get out of the deal with Evergrande,” is because Evergrande has failed to live up to its end of the bargain and make the payments it agreed to make. This is a matter of basic, common-sense fairness – Evergrande shouldn’t be permitted to withhold the funding and simultaneously prevent FF from accepting alternative financing or investments.
Since the founding of FF in 2014, we have never given up on our vision to produce and deliver a new species of mobility. It has been a journey with twists and turns, but FF’s belief in that vision and its focus on its mission are unwavering. Under the leadership of FF founder and CEO YT Jia, FF remains positioned to lead the industry in delivering a disruptive and revolutionary vehicle in 2019. We will continue to take decisive action, including pursuing funding opportunities from those who share our vision, to ensure that our vision is realized.
This communication contains certain "forward-looking" statements. Forward-looking statements include, but are not limited to, statements concerning FF’s operations, economic performance, financial condition, growth strategies, investments and future operational plans. For this purpose, any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," “assume,” "intend," "could," "estimate," "might," “plan,” “predict,” “project,” “future,” “seek” or "continue" or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. These statements, by their nature, involve substantial risks and uncertainties, certain of which are beyond FF's control, and actual results may differ materially depending on a variety of important factors, including uncertainty related to governmental regulation. All of these forward-looking statements are based on estimates and assumptions made by FF's management which, although believed to be reasonable, are inherently uncertain. FF can give no assurance that its assumptions, estimates and statements will prove to be correct. Therefore, undue reliance should not be placed upon such estimates and statements. Any forward-looking statements made herein speak only as of the date hereof. Further, FF does not undertake any obligation to make any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.