IT Home reported on March 23 that on March 22 local time, according to foreign media TechCrunch, the U.S. Securities and Exchange Commission (SEC) has officially concluded its investigation into Faraday Future, without following the previous recommendations from the enforcement personnel responsible for the case to &#34;take action.&#34;
Multiple informed sources revealed that the SEC notified the company and relevant personnel last week about the termination of the investigation. Meanwhile, the overall enforcement efforts of the SEC are clearly declining. Data shows that the agency initiated only 4 enforcement cases against publicly listed companies in the fiscal year 2025.
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The investigation into Faraday Future lasted nearly four years, focusing on two core issues: first, whether the company made false or misleading statements during its merger with a special purpose acquisition company (SPAC) in 2021; second, whether there was any fraud in the sales of the first batch of electric vehicles in 2023, a claim made by several former employees.
During the investigation, the SEC issued multiple subpoenas to Faraday Future and conducted interviews with several former employees and executives from 2024 to 2025.
In July 2025, Faraday Future disclosed that the SEC had issued a &#34;Wells Notice&#34; to the company and several executives, including founder Jia Yueting, indicating that the enforcement personnel were prepared to recommend filing a lawsuit.
However, the SEC ultimately did not take action. Jia Yueting stated that the company could refocus its resources on business advancement, having invested significant time and costs to cooperate with the investigation over the past few years. Faraday Future also confirmed that the SEC would not take enforcement action against any of its executives.
It is noteworthy that the company had initially not responded to the Wells Notice. A disclosure in February of this year still indicated that Faraday Future planned to communicate with the SEC to explain why enforcement action should not be taken.
In addition to the SEC, the U.S. Department of Justice also made information requests to Faraday Future in 2022, but whether a formal case was opened has not been confirmed.
Historically, it is rare for enforcement actions to be withdrawn after a Wells Notice is issued. Research shows that about 85% of related cases ultimately proceed to litigation.
Over the past few years, the SEC has investigated nearly all electric vehicle startups that went public through SPACs, most of which ended in settlements. Previously, investigations into Lucid Motors and Fisker have also been terminated.
Returning to the company itself, Faraday Future experienced governance turmoil during the investigation. In 2022, internal personnel and those closely related to Jia Yueting pushed for a restructuring of the board of directors, during which threats against board members even occurred, ultimately leading to a board replacement.
On the business front, the company delivered its first batch of FF91 vehicles in early 2023, but former employees alleged that the sales situation was &#34;not real&#34; and involved misleading investors, which also became one of the key focuses of the SEC's investigation
The company is still promoting the sales of FF91 while attempting to transform, including introducing low-cost models from China, selling robotic products, and venturing into cryptocurrency business.
However, these adjustments have not yet improved its operating conditions. Last Friday local time, the company disclosed that it had received a warning from Nasdaq, as its stock price fell below $1 (Note: the current exchange rate is approximately 6.9 RMB), facing the risk of being delisted

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The U.S. Securities and Exchange Commission (SEC) has officially concluded its investigation into Faraday Future, which lasted nearly four years without any enforcement action. The investigation primarily focused on false statements made during the company's merger with a special purpose acquisition company (SPAC) and allegations of falsifying electric vehicle sales in 2023. Faraday Future's founder Jia Yueting stated that the company will refocus its resources to advance its business, and the SEC has not taken enforcement actions against its executives

- The U.S. Securities and Exchange Commission (SEC) has officially closed its nearly four-year investigation into Faraday Future, with no action taken as previously suggested by enforcement officials.  
- Central issues included allegations of false statements during the company's SPAC merger in 2021 and claims of fabricated electric vehicle sales in 2023 from former employees.  
- Despite the investigation's conclusion, Faraday Future faces governance challenges and risks of Nasdaq delisting due to its stock price falling below $1.

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After nearly 4 years, the U.S. SEC has terminated its investigation into Faraday Future Intelligent Electric