US stock market supervisory authority drops investigation against Faraday Future

The US stock market supervisory authority Securities and Exchange Commission (SEC) has discontinued its investigation into the Chinese-American electric car manufacturer Faraday Future. The SEC has not commented further on this.

The SEC informed the company and individuals involved in the matter last week about the discontinuation. This is reported by the US technology magazine Techcrunch, citing four sources. An inquiry from Techcrunch for a statement remained unanswered.

Faraday Future has confirmed the end of the investigation. The SEC has not imposed any enforcement actions against the company, its CEO and founder Jia Yueting, or other company personnel, Faraday Future announced.

Much time and effort for cooperation with the SEC

"Over the past five years, we have had to spend a lot of time, effort, and money cooperating with the investigation," commented Jia. "Now we can focus all our energy on implementing our strategy."

The investigation lasted about four years and revolved around the IPO, among other things. In 2021, Faraday Future merged with a so-called Special Purpose Acquisition Company (Spac) and went public through it. The company is alleged to have made "false and misleading statements" in the process. In addition, Faraday Future is alleged to have published false sales figures in 2023.

During the investigation, which dragged on for almost four years, the authority served the company with a series of subpoenas. Furthermore, according to three of the Techcrunch informants, several former employees and executives were interviewed in 2024 and 2025.

(wpl)