Faraday Future announces SEC closed four-year investigation with no enforcement action

The Securities and Exchange Commission has closed its nearly four-year investigation into Faraday Future, the electric vehicle startup said this past week. The regulator informed the company and individuals involved in the probe of the decision, according to four sources familiar with the matter who spoke to TechCrunch on condition of anonymity. The closure came despite SEC staff recommending enforcement action last year. Faraday Future said the SEC also told the company it would not take action against any of its executives. The investigation examined whether the startup made false and misleading statements during its 2021 SPAC merger and whether it faked sales of its first electric vehicles in 2023. The SEC sent multiple subpoenas and took depositions of former employees and executives in 2024 and 2025. In a statement, founder Jia Yueting said the company can now put all its energy into strategy execution after spending significant time, effort and money cooperating with the investigation over the past five years. It is rare for the SEC to close a case after issuing Wells Notices, which signal staff intent to recommend enforcement. Faraday Future had disclosed in regulatory filings as recently as February that it planned to engage with the SEC to explain why action was not warranted.