The U.S. Securities and Exchange Commission has ended its nearly four-year investigation into electric vehicle startup Faraday Future, a rare outcome amid a historic drop in the agency’s enforcement actions.
Four sources familiar with the matter told TechCrunch that the SEC informed the company and individuals involved of the closure this week. The dismissal is unusual—a 2020 study found that about 85% of targets that receive a “Wells Notice” end up in court with the SEC. Last July, SEC staff had issued such a notice to Faraday Future and its founder Jia Yueting, recommending enforcement action.
The investigation focused on whether Faraday Future made false and misleading statements during its 2021 SPAC merger, as well as allegations from former employee whistleblowers that the company faked the first deliveries of its electric vehicles in 2023. During the probe, the SEC issued multiple subpoenas and conducted depositions with former employees and executives in 2024 and 2025.
Faraday Future said in a statement that it will now focus entirely on strategy execution. Founder Jia Yueting noted that the company had spent significant time, effort, and money over the past five years cooperating with the investigation. The SEC also confirmed it will not take action against any of the company’s executives.
Founded in 2014, Faraday Future was once seen as a potential “Tesla challenger.” After facing cash shortages, its founder’s debt crisis in China, and a collapsed partnership with major investor Evergrande, the company went public in 2021. However, an internal investigation later revealed that executives had downplayed Jia’s control over the company—findings that were shared with the SEC and ultimately led to a broader regulatory probe.
Although the SEC and Department of Justice have now closed their inquiries, Faraday Future continues to face operational challenges. Last Friday, the company received a warning from Nasdaq about potential delisting due to its stock price trading below the $1 minimum requirement.