Faraday Future under investigation by the SEC

Electric vehicle (EV) startup Faraday Future has revealed it is under investigation by the U.S. Securities and Exchange Commission (SEC) for making inaccurate statements to investors.

The company revealed the investigation in a press release today, saying it would miss the deadline to submit its annual 10-K filing due to the extra work required to comply with the subpoena.

According to Faraday Future, the company, members of its management team, and employees received a notice of preservation and subpoena from the SEC in regards to a previously announced independent internal investigation into allegations of inaccurate Company disclosures.

A special committee set up to conduct the investigation identified certain inaccurate statements describing founder Jia Yueting’s role within the company and his involvement following its reverse merger with a special-purpose acquisition company (SPAC) last year.

Following the investigation, the committee cut the salaries of its CEO Carsten Breitfield and Yueting by 25%, but maintained that allegations made by short-seller J Capital that the company was a scam were unfounded. (via Reuters)

Since being founded in 2014, Faraday Future has yet to release an EV, but recently announced a new partnership with Myoung Shin Co., Ltd. to build the FF 81 with the goal to bring it to production in 2024.

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