The Securities and Exchange Commission has quietly shut down its long-running investigation into Faraday Future Intelligent Electric without bringing any enforcement action against the electric vehicle startup or its executives, including founder Jia Yueting, according to multiple people familiar with the case who spoke to TechCrunch.
The closure, confirmed to Faraday Future and those involved just last week, ends a nearly four-year inquiry that began in the spring of 2022. At its core, the SEC examined whether the company made misleading statements during its 2021 SPAC merger and whether early deliveries of its flagship FF 91 luxury SUV in 2023 amounted to legitimate sales or were staged for appearances.
The decision marks a rare escape for a target that had received formal Wells Notices last July, warning that SEC staff intended to recommend charges for violations of federal anti-fraud provisions. A 2020 study from the Wharton School found that roughly 85 percent of Wells Notice recipients ultimately faced enforcement action. In this instance, the agency stepped back entirely.
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Faraday Future said in a statement over the weekend that the SEC had informed the company it would take no action against it or any of its executives.
Jia, who has steered the company through repeated near-death experiences, responded with visible relief: “We can now put all our energy into strategy execution. Over the past five years, we had to spend a great deal of time, effort, and money on cooperating with the investigation.”
The investigation traced back to the chaotic period surrounding Faraday Future’s public listing. The company, founded in 2014 by Jia during his LeEco conglomerate days in China, positioned itself as a Tesla rival. It drew talent from Tesla, Apple, and other heavyweights and unveiled a flashy concept at the 2016 Consumer Electronics Show. But cash ran out quickly. By late 2017, the company was laying off workers, and Jia was fleeing to California after LeEco’s collapse left him on China’s debtor blacklist.
An investment from Chinese real estate giant Evergrande provided a temporary lifeline before that partnership also fractured. Jia nominally stepped down as CEO in 2019 while filing for personal bankruptcy to settle LeEco debts he had personally guaranteed. Behind the scenes, though, he retained significant influence.
When Faraday Future completed its SPAC merger in 2021 and raised roughly $1 billion, the new public board grew suspicious about Jia’s actual control and related-party transactions, including multimillion-dollar loans from low-level employees tied to him. A special committee hired outside lawyers and forensic accountants. Their findings were shared directly with the SEC, triggering the formal probe in March 2022.
Between January and April of that year, Jia was sidelined, co-CEO Matthias Aydt was placed on probation, and Jia’s nephew, Jerry Wang, was suspended. Wang later resigned for failing to cooperate, but has since returned to the company.
The SEC also scrutinized the first handful of FF 91 deliveries in early 2023. Former employees alleged in lawsuits that those were not genuine sales but rather internal arrangements meant to create the appearance of revenue. Subpoenas and depositions followed, with some former executives and employees sitting for extended interviews in 2024 and into 2025.
The Department of Justice requested information from Faraday Future shortly after the SEC opened its case, though the DOJ has never publicly confirmed opening a full criminal investigation.
The closure fits a pattern. The SEC examined nearly every electric vehicle startup that went public through SPAC mergers in the early 2020s. Most ended in settlements. The agency dismissed its probe into Lucid Motors in 2023 and, as previously reported, closed its investigation into bankrupt EV maker Fisker late last year.
Faraday Future, however, has continued to struggle with execution. Production of the high-priced FF 91 has remained minimal. In recent months, the company has pivoted toward importing more affordable hybrid and electric vans from China, selling re-badged Chinese-built robots, and converting a publicly traded biotechnology shell into a crypto-focused entity.
On Friday, the company disclosed that Nasdaq had issued a warning: its share price had fallen below the $1 minimum bid requirement, raising the possibility of delisting if it cannot regain compliance.
What the Closure Means
The end of the SEC investigation removes a significant legal cloud that had hung over Faraday Future for years. For Jia, who has survived multiple corporate collapses and personal financial ruin, it means another narrow escape and a chance to refocus on operations without the constant distraction of subpoenas and depositions.
Many doubt that the SEC’s decision can translate into sustainable sales and a viable business model for the company. The EV market has grown brutally competitive, capital remains expensive, and Faraday Future’s track record of overpromising and underdelivering has left many investors skeptical.
However, the decision pinpoints a shift from the SEC’s aggressive scrutiny of SPAC deals during the 2020-2021 boom. Many of those once-hyped startups have since faded, restructured, or disappeared entirely. Faraday Future now joins the small group that managed to walk away from a lengthy federal probe without formal charges.