SEC Closes Faraday Future Probe Without Action

The U.S. Securities and Exchange Commission has closed its nearly four-year investigation into Faraday Future Intelligent Electric Inc., the California-based electric vehicle startup, without taking any enforcement action against the company or its executives. The regulator notified Faraday Future of the decision last week, as disclosed in a filing on March 21, 2026, marking a significant relief for the firm amid ongoing financial and operational challenges.

The probe, which began in 2022, examined the company's 2021 merger with a special purpose acquisition company that took it public at a $3.4 billion valuation, as well as related private investment in public equity financing. SEC staff had issued Wells Notices in July 2025 to Faraday Future and several executives, including founder Jia Yueting, signaling a potential recommendation for enforcement. The investigation also looked into allegations of misleading statements about vehicle preorders and reservations, and claims from former employees that the company had inflated sales figures for its FF 91 luxury electric SUV in 2023. Multiple subpoenas and depositions of former staff followed, but the agency ultimately decided...