The SEC drops its four-year-old investigation into EV startup Faraday Future
TechCrunch • • business
Key Points:
- The SEC has closed its nearly four-year investigation into electric vehicle startup Faraday Future without pursuing enforcement action, despite staff recommending such action last year.
- The probe examined whether Faraday Future made false or misleading statements during its 2021 SPAC merger and whether it faked sales of its first electric vehicles in 2023, claims made by former employee whistleblowers.
- Faraday Future and its executives, including founder Jia Yueting, received Wells Notices in July 2025, signaling a staff recommendation for enforcement, but the SEC ultimately decided not to take action.
- The investigation involved subpoenas, depositions of former employees and executives, and scrutiny of related party transactions and Jia’s control over the company amid financial struggles
