Global Automotive Stocks/EV Focus/Event Driven, SC Capital

SC Capital

Global Automotive Stocks/EV Focus/Event Driven

Over 22 years covering Japanese equities on both the sell side and the buy side. 

Bottom-up Japan Equities Research

Equity Bottom-Up

Faraday Future Intelligent Ele / Equity Bottom-Up

<ul>
<li>Faraday Future (FF) announced that it has delayed the Q3 2022 launch of its first EV and is "continuing to engage" in fundraising talks. </li>
<li>FF says it needs $325m to last through the year or 47% of its market cap. A PIPE deal could be underway, albeit the 8-K filing was cautiously worded. </li>
<li>Depending on the agreement, it may pave the way for the recently deposed founder to place a crony on the Board, which could be negative for future funding. </li>
</ul>


Faraday Future (FF) announced that it has delayed the Q3 2022 launch of its first EV and is "continuing to engage" in fundraising talks. 
FF says it needs $325m to last through the year or 47% of its market cap. A PIPE deal could be underway, albeit the 8-K filing was cautiously worded. 
Depending on the agreement, it may pave the way for the recently deposed founder to place a crony on the Board, which could be negative for future funding. 


Faraday Future (FFIE) Delays New EV Launch; Says It Needs More Cash

<ul>
<li>The proxy fight between Faraday's founder and its Board has heated up further, with the founder making two 13D filings to the Board in just 3 days. </li>
<li>The founder wants to replace a certain Board member with a candidate of his choice and said he has third party investors willing to inject $100M+ if the Board agrees. </li>
<li>The Board never replied and this shows how tight the cash crunch at Faraday has become. Q2 cash should come to only $60M, or roughly 1 month of operations.</li>
</ul>


The proxy fight between Faraday's founder and its Board has heated up further, with the founder making two 13D filings to the Board in just 3 days. 
The founder wants to replace a certain Board member with a candidate of his choice and said he has third party investors willing to inject $100M+ if the Board agrees. 
The Board never replied and this shows how tight the cash crunch at Faraday has become. Q2 cash should come to only $60M, or roughly 1 month of operations.


Faraday Future's Proxy Fight Intensifies: $100M Financing Offer Ignored

<ul>
<li>Faraday has been actively looking for financing as cash on hand in April was only $222m and its cash-burn in Q1 ran at $173m.</li>
<li>On top of SEC &amp; DoJ investigations, Faraday's financing efforts are further hampered by a recent proxy battle against the Board of Directors launched by Faraday's founder.</li>
<li>Faraday "believes" it has enough cash to see the launch its first EV in Q3, but Q2 results may show it has little cash left for a successful ramp-up.  </li>
</ul>


Faraday has been actively looking for financing as cash on hand in April was only $222m and its cash-burn in Q1 ran at $173m.
On top of SEC &amp; DoJ investigations, Faraday's financing efforts are further hampered by a recent proxy battle against the Board of Directors launched by Faraday's founder.
Faraday "believes" it has enough cash to see the launch its first EV in Q3, but Q2 results may show it has little cash left for a successful ramp-up.  


Faraday Future (FFIE) Struggles to Finance Amid Internal "Civil War"

Smartkarma Research Team, Smartkarma

Smartkarma Research

Smartkarma Research Team

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

<p>In our next Webinar, we are excited to host Analyst Chris Redl (<a href="https://www.smartkarma.com/profiles/sc-capital" target="_blank" data-smartkarma-citation="accounts:914" rel="noopener">SC Capital</a>) who will outline his stock picks in the global automotive sector. What do major automotive names look like amidst the EV revolution? Tune in to hear more.</p>
<h3>The webinar was hosted on Wednesday, 29 June 2022, 17:00 SGT/HKT.</h3>
<p>Subscribe to our podcast feed and listen on the go:</p>
<p><iframe src="https://open.spotify.com/embed/episode/0eVtefGNCoU6q220ftsavT?utm_source=generator" width="100%" height="232" style="border-radius: 12px;" frameborder="0" allowfullscreen="allowfullscreen" allow="autoplay; clipboard-write; encrypted-media; fullscreen; picture-in-picture"></iframe><span style="font-size: var(--content-font-size);">SC Capital has over 20 years' experience covering the global automotive industry both on the Sell-side (UBS &amp; Morgan Stanley) and Buy-side (Och-Ziff), along with a wealth of industry contacts. The current focus is on electric vehicle stocks &amp; their supply chains, aiming is to identify the winners and losers from a long/short perspective. This includes close coverage of legacy automakers as well. From time to time, SC Capital covers opportunistic events with stocks in the manufacturing sector, food &amp; beverage, healthcare, and tech.</span></p>

In our next Webinar, we are excited to host Analyst Chris Redl (SC Capital) who will outline his stock picks in the global automotive sector. What do major automotive names look like amidst the EV revolution? Tune in to hear more.
The webinar was hosted on Wednesday, 29 June 2022, 17:00 SGT/HKT.
Subscribe to our podcast feed and listen on the go:
SC Capital has over 20 years' experience covering the global automotive industry both on the Sell-side (UBS &amp; Morgan Stanley) and Buy-side (Och-Ziff), along with a wealth of industry contacts. The current focus is on electric vehicle stocks &amp; their supply chains, aiming is to identify the winners and losers from a long/short perspective. This includes close coverage of legacy automakers as well. From time to time, SC Capital covers opportunistic events with stocks in the manufacturing sector, food &amp; beverage, healthcare, and tech.

Smartkarma Webinar | Global Automotive Stock Picks

<ul>
<li>Farday Future failed to file its Q1 2022 financials by May 16th, saying it received an extension until May 23rd. This is the 3rd extension for Faraday's quarterly financials. </li>
<li>The company's cash has <em><strong>halved</strong></em> in the 3 months between the end of December 2021 and March 2022 end.</li>
<li>Disclosures are now cautious about its first model launch in July and its ability to fund operations through 2022. Finance needs stated to be $1.5bn or 2x its market cap. </li>
</ul>


Farday Future failed to file its Q1 2022 financials by May 16th, saying it received an extension until May 23rd. This is the 3rd extension for Faraday's quarterly financials. 
The company's cash has halved in the 3 months between the end of December 2021 and March 2022 end.
Disclosures are now cautious about its first model launch in July and its ability to fund operations through 2022. Finance needs stated to be $1.5bn or 2x its market cap. 


Faraday Future (FFIE) Fails to File Q1 Results; Changes Tone on 1st Model Launch Timing

United States

Faraday Future Intelligent Electric Inc. operates as a mobility ecosystem company. The Company develops mobility ecosystem that integrates clean energy, AI, internet, and usership models. Faraday Future Intelligent Electric serves customers worldwide.

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Faraday Future Intelligent Ele (FFIE US)

Faraday Future (FFIE) Delays New EV Launch; Says It Needs More Cash

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Faraday Future's Proxy Fight Intensifies: $100M Financing Offer Ignored

Faraday's proxy fight intensifies with the founder claiming he's lined up $100M in financing, only if he can replace a Board member with his own...

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Faraday Future (FFIE) Struggles to Finance Amid Internal "Civil War"

Faraday Future is +128% in the last 8 trading days in a big short squeeze. This comes despite Faraday having only 4 months of cash left as of...

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Smartkarma Webinar | Global Automotive Stock Picks

On 29 June, 5pm SGT, join our Webinar where Analyst Chris Redl will outline his stock picks in the global automotive sector, amidst the EV revolution.

Smartkarma Research

Faraday Future (FFIE) Fails to File Q1 Results; Changes Tone on 1st Model Launch Timing

Faraday has rallied 66% since last Wednesday on short covering. The EV start-up has 3 quarters of cash left & stated it needs financing worth 2x...

SC Capital

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