The U.S. Securities and Exchange Commission (SEC) has issued Wells Notices to Faraday Future founder Jia Yueting and president Jerry Wang, signaling the agency may soon pursue enforcement actions after a three-year investigation into potential securities fraud linked to the company’s 2021 SPAC merger.
In a regulatory filing published Wednesday, Faraday Future disclosed the notices, which indicate that the SEC’s enforcement staff has recommended actions against the electric vehicle startup, Jia, Wang, and two unnamed former employees. The SEC’s focus centers on alleged false or misleading disclosures made during the company’s merger with a special purpose acquisition company, which enabled it to go public. The agency may seek penalties ranging from civil fines to injunctions or disgorgement of ill-gotten gains.
According to the filing, Faraday Future and the executives named intend to engage with the SEC to argue against such actions. The company has not provided specific comment, and Jia and Wang did not respond to inquiries.
Concerns about Faraday Future’s disclosures and governance arose soon after the SPAC deal. Independent board members appointed during the process grew wary of how much influence Jia retained behind the scenes, as well as questionable financial links between the company and entities tied to him. An internal probe confirmed those suspicions, leading to Jia being sidelined and Wang resigning after refusing to cooperate. The findings were shared with the SEC, which launched an investigation in early 2022.
The regulatory scrutiny coincided with ongoing boardroom power struggles. In 2022, an external shareholder group linked to Jia sought to regain board control, pressuring directors and even offering payments to prompt resignations. Some board members received death threats before eventually stepping down. Despite this tumult, Jia reasserted leadership at the company and was named co-CEO in April 2024.
While Faraday Future delivered its long-promised EV SUV to select customers in 2023, whistleblower complaints have alleged those deliveries were staged or misleading—adding further questions about the company’s public disclosures. The SEC’s investigation, led from its Los Angeles office, continues to unfold.
