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SEC Closes Faraday Future Probe Despite Earlier Push for Enforcement

The move departs from typical outcomes after Wells Notices, which usually culminate in charges.

The seal of the U.S. Securities and Exchange Commission (SEC) is seen at their headquarters in Washington, D.C., U.S., May 12, 2021. Picture taken May 12, 2021. REUTERS/Andrew Kelly/File Photo
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Overview

  • People familiar with the matter said the SEC notified Faraday Future and others this past week that the nearly four-year investigation is closed.
  • SEC staff had issued Wells Notices in July 2025 to the company and multiple executives, including founder Jia Yueting, after preliminarily recommending enforcement.
  • The inquiry examined alleged false or misleading statements tied to the 2021 SPAC merger and questions over 2023 FF91 sales, with multiple subpoenas and depositions in 2024–2025.
  • The Department of Justice requested information after the SEC opened its case in 2022, though the DOJ has not confirmed any separate probe.
  • Faraday Future still faces civil suits over alleged bogus FF91 sales and a recent Nasdaq warning about its sub-$1 share price, while related firm AIxCrypto rose roughly 70% premarket on the news as FFAI shares traded lower.