The SEC drops its four-year-old investigation into EV startup Faraday Future

The Securities and Exchange Commission (SEC) has officially closed its nearly four-year investigation into electric vehicle startup Faraday Future, despite SEC staff recommending enforcement action last year. The probe focused on whether Faraday Future made false or misleading statements during its 2021 SPAC merger and if it falsified sales of its first electric vehicles in 2023, allegations raised by multiple whistleblowers. The SEC conducted extensive inquiries, including subpoenas and depositions of former employees and executives, and issued Wells Notices—formal warnings of potential enforcement—to the company and founder Jia Yueting in 2025. However, the SEC ultimately decided not to pursue enforcement, a rare outcome given that approximately 85% of Wells Notices typically lead to court cases. This closure occurs amid a broader decline in SEC enforcement actions against publicly traded companies, with only four cases initiated in the 2025 fiscal year. Faraday Future had also been subject to information requests from the Department of Justice, though no formal DOJ investigation has been