SEC Ends Nearly Four-Year Probe into Faraday Future Without Enforcement Action

The U.S. Securities and Exchange Commission (SEC) officially concluded its nearly four-year investigation into Faraday Future on March 22, declining to follow enforcement staff’s prior recommendation to take action. The probe focused on two key issues: whether the company made false statements during its 2021 SPAC merger listing, and whether its first batch of FF91 electric vehicle sales in 2023 was fabricated—a claim stemming from whistleblower allegations by multiple former employees. Although the SEC had issued Wells notices in July 2025 to the company and founder Jia Yueting, signaling potential enforcement action, it ultimately decided against imposing penalties or taking any measures against executives. Faraday Future stated it would refocus its resources on advancing its business operations. Notably, the SEC’s enforcement activity has significantly waned in recent years, with only four cases brought against public companies in fiscal year 2025. The company continues to face operational challenges and has received a Nasdaq delisting warning due to its stock price falling below $1.