- The probe was linked to the company’s SPAC merger and PIPE financing disclosures.
- In 2021, short-seller J Capital Research published an article raising concerns regarding Faraday Future’s production plans, finances, and R&D.
- The company said it will continue with its long-term strategy, including a roadmap focused on business growth and AI-driven development.
Shares of Faraday Future Intelligent Electric (FFAI) soared more than 50% in pre-market trading on Monday after the company said a “years-long investigation” by the U.S. Securities and Exchange Commission had ended without any enforcement action against the firm or its executives.
The probe, which dates back to 2021, was linked to the company’s Special Purpose Acquisition Company (SPAC) merger and Private Investment in Public Equity (PIPE) financing disclosures.
The SEC had earlier issued Wells Notices to the company, its founder, Jia Yueting, and its President, Jerry Wang. A Wells Notice is a warning from the SEC that it may bring charges for possible securities law violations. It gives the recipient a chance to respond before any final decision is made.
“New EV Scam in Town”
In 2022, the SEC subpoenaed some Faraday Future executives as part of a probe into inaccurate statements made to investors. Back then, CEO Carsten Breitfield and founder Jia Yueting saw their base salaries reduced.
In 2021, short-seller J Capital Research published an article, “Move Over Lordstown: There’s a New EV Scam in Town,” targeting Faraday Future. The article, which was rejected by the EV maker, raised concerns about its production plans, finances, and R&D efforts.
Faraday Future went public on the Nasdaq in July 2021 through a SPAC merger at an offering price of $13.78.
Faraday To Kick On With Long-Term Growth Strategy
Faraday Future said the development removes a major overhang that had weighed on investor sentiment and limited the company’s ability to secure funding and partnerships. The company added that the investigation had made it difficult to work with institutional investors, investment banks, and strategic partners due to compliance concerns.
With the probe closed, the company expects to advance financing discussions. It will go ahead with its long-term strategy, including a multi-phase roadmap focused on business growth and AI-driven development.
Faraday’s Listing Challenges
According to an SEC filing on Friday, Faraday Future Intelligent received a notice from the Nasdaq Stock Market for failing to maintain a minimum share price of $1 over 30 consecutive trading days. The company has 180 days, until Sept. 16, 2026, to regain compliance with the listing requirement. If the company fails to comply, it could face delisting.
FFAI shares have traded below $1 since Feb. 5, 2026.
How Did Stocktwits Users React?
Retail sentiment for FFAI remained in the ‘extremely bullish’ zone over the past 24 hours. Message volumes increased by 50% according to Stocktwits data.
However, chatter was mixed. While one expects the stock to climb to $3 from its current price of $0.4, another user sees FFAI as a “pump and dump” stock.
The stock has been under heavy selling pressure in 2026, shedding more than 70%.
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