By JIANG Jingling

U.S. short seller J Capital Research has questioned Faraday Future’s (FF) finances and technical ability, suggesting that the company has neither the intention nor the ability to make or sell a NEV.

The report question FF’s patents, financial status, and sales figures: “So far, it’s nothing but a bucket to collect money from U.S. investors and pour it into the black hole of debt created by its founder, China’s best-known securities fraudster, Jia Yueting.”

Jia took to WeChat to defend himself, suggesting that J Capital Research has “made a fool of itself,” and not for the first time. He also announced that the FF91 would be on the market by July next year.

J Capital claims to have visited FF’s factory in the States three times in August and September and found the plant that will supposedly start mass production in seven months “awfully quiet.” In addition, FF has promised factories in five cities in the U.S. and China but no progress has been made in this regard.

FF announced 14,000 presales in January. The report also alleges that 78 percent of them originate in the same company and that FF had received less than 1 million yuan (US$140,000) from new orders this year.

According to FF’s public filings, it needs an additional US$1.4 billion to achieve its financial targets by 2024, which may lead to further dilution of investors’ shareholdings.

FF shares closed 9.8 percent up at US$8.40 per share on October 7 but fell to US$8.05 on the next day, 42 percent off compared with July 22 when the company listed on Nasdaq.