EV SPAC Faraday Future has now caught the attention of the Department of Justice

- Advertisement -


The Justice Department’s request for information is related to an investigation by the Securities and Exchange Commission. registration of securities represented by the launch of the electric car on Thursday. Faraday said he is “in the process of responding to such a request and intends to cooperate fully with it.”

- Advertisement -

The disclosure comes just a day after Faraday Future said during an investor presentation that it plans to open a factory in China as early as 2025.

- Advertisement -

Last March, the SEC subpoenaed several key Faraday Future executives, prompted by the company’s own internal investigation.

An internal review by a special committee of directors revealed that employees made inaccurate statements to investors during the company’s operations. Special merger in 2021, and that his “company culture did not place enough emphasis on compliance.” For example, the committee found that a startup’s claim of having received over 14,000 bookings for its FF 91 car was potentially misleading, as only a few hundred of those bookings were paid.

- Advertisement -

BUT Faraday Future board restructuring, demotion of the founder, This was followed by pay cuts to senior management and the removal of another.

Faraday’s continued troubles with regulations are par for the course for electric vehicle companies that have gone public as a result of SPAC mergers over the past two years. In an effort to raise the funds needed to succeed, several companies such as Lordstown Motors, Kanu, Last Mile Electrical Solutions as well as Lucid Grouppotentially exaggerated their ability to create a profitable business and as a result became the subject of a series of investigations by the US Securities and Exchange Commission and the Department of Justice.

Shares of Faraday Future fell 1.4% at 5:43 pm ET after hours.


Credit: techcrunch.com /

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox