The Securities and Exchange Commission has closed its lengthy investigation into electric vehicle startup Faraday Future without taking any enforcement action. The California-based company says the conclusion will help it secure financing and partnerships that were previously hindered by compliance concerns.
Electric vehicle startup Faraday Future announced Sunday that federal securities regulators have wrapped up their investigation into the company without pursuing any enforcement measures.
The Securities and Exchange Commission’s decision to close the four-year probe clears a significant hurdle for the California-based firm, which says the regulatory scrutiny had made it challenging to secure major financing deals and establish partnerships with large banks and investors.
The company had previously revealed that federal investigators were examining issues connected to its 2021 private investment in public equity financing and transactions related to its special purpose acquisition company merger.
Federal regulators issued subpoenas to several Faraday Future executives in March 2022 as part of their examination into misleading statements the company allegedly made to shareholders following its public debut in 2021.
The company conducted its own internal assessment in February 2022, which uncovered problematic statements made to investors. As a result, Faraday Future reduced the base compensation of then-Chief Executive Officer Carsten Breitfeld and company founder Jia Yueting, while requiring both executives to answer to Executive Chairperson Susan Swenson.
Police Activity Shuts Down Route 300 Between Mt. Friendship and Bryn Zion Roads
Vatican’s Sistine Chapel Opens Doors for Exclusive Angel-Themed Concert
Israeli Military Chief Says Lebanon Operation ‘Has Only Begun’ as Strikes Escalate
New Survey Shows Mothers’ Top Reasons for Church Attendance