(Yicai Global) July 22 -- Shares in China Evergrande New Energy Vehicle Group surged by as much as 31 percent today as US electric car startup Faraday Future, in which Evergrande NEV holds a 20 percent stake, prepares to go public in the US today.

Evergrande NEV’s share price [HKG:0708] closed up 20.30 percent at HKD15.88 (USD2). Earlier in the day it had reached HKD17.34.

The rally will be welcome news to investors as the company’s stock had lost 80 percent of its value in the last three months due to the debt crisis enfolding its parent company real estate giant China Evergrande Group.

New models will be introduced immediately after the initial public offering, Faraday Future partner Chen Zhe told Yicai Global today. Pre-orders for a fully refundable downpayment of CNY50,000 (USD7,735) deposit began last week. Mass production will start in the first half of next year in Hanford, California, he added.

The USD1 billion listing will enable the California-based carmaker, founded by Chinese businessman Jia Yueting, to finally start mass production of its FF91 prototype after seven years in the pipeline.

Production has been dogged with setbacks, mostly arising from Jia’s personal debt crisis. Jia, who also set up Beijing-based internet firm Leshi Holdings Group, fled China for the US in 2017 to escape mounting arrears largely caused by an overambitious diversification plan that did not pay off.

Part of Jia’s debt restructuring plan, approved by a US court last May, was to put all of his equity in Faraday Future, about 33 percent, into a creditor’s trust. Original shareholders and creditors will continue to own most of the carmaker’s equity, around 66 percent, after the listing.

Editors: Tang Shihua, Kim Taylor