- The SEC investigation has been formally concluded, with a decision to seek no penalties or enforcement action against the Company, founder and Co-CEO YT Jia, FF President Jerry Wang, or any other Company team members.
- With the SEC concluding its investigation, the Company gains regulatory clarity and the ability to fully focus efforts on its core businesses.
- FF can also now further advance potential strategic financing and strategic partnerships and could gain more support from government agencies and regulators, deepen cooperation with existing partners, and more efficiently attract top global talent.
- The Company is launching an upgraded Ten-Punch Combo, making every effort to generate sustainable and growing positive cash flow as quickly and cost-effectively as possible through four phases, and restore market confidence and deliver maximum value to stockholders.
Los Angeles, CA (March 24, 2026) – Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI) (“Faraday Future”, “FF” or the “Company”), a California-based global Embodied AI (EAI) ecosystem company, today announced that the yearslong investigation by the U.S. Securities and Exchange Commission (SEC) has ended without any recommended enforcement action against the Company, founder and Co-CEO YT Jia, FF President Jerry Wang, or any other members of the Company, bringing regulatory clarity.
FFAI previously disclosed that the investigation related to certain matters involving its 2021 PIPE and SPAC-related transactions, and that the SEC had issued Wells Notices to the Company and certain executives. The Wells Notices were not formal charges, and the SEC Division of Enforcement has now formally informed the Company, YT Jia and Jerry Wang that is has concluded its investigation and is not recommending an enforcement action against any of them.
Prior to the SEC investigation, an investigation was started in October of 2021 by an independent director from the SPAC merger counterparty. Since FF was founded, it has always believed that full compliance with laws and regulations was among the most fundamental principles the Company should hold. Because the Company wanted the opportunity to prove its innocence, and because it did not yet see through the conspiracy of the FF SPAC merger counterparty it agreed to a proposal to establish a special committee for an independent investigation. What followed is well-known and fully disclosed.
The conclusion of the SEC’s investigation means that the long-standing overhang and sources of instability that constrained the Company have now been removed. This is the strongest and cleanest response to potential illegal short sellers. Capital markets fear uncertainty above all else. Some short sellers used the time when the investigation was still open to spread rumors, defame the Company, create panic, and profit illegally. Now, the SEC’s conclusion means FF’s reputation is being restored, and confidence is coming back.
FF can now further advance potential strategic financing and strategic partnerships. During the investigation, because of compliance concerns, it was very difficult for major investment banks, large institutional investors, and strategic investors to work with FF. This barrier is now removed. It could also help us gain more support from government agencies and regulators, deepen cooperation with strategic partners, and more efficiently attract top global talent, especially AI talent.
“We can now put all our energy into strategy execution. Over the past five years, we had to spend a great deal of time, effort, and money on cooperating with the investigation. Now, I, the management team, and the Company’s capital and resources can all be 100% focused on strategy execution, business progress, and value creation on our core business of EAI Vehicles and Embodied AI (EAI) Robotics,” said YT Jia, FF Founder and Global Co-CEO. “We sincerely thank the SEC for its fair conclusion and its clear decision. This is a major milestone for FF, for me personally, for Jerry, and for all of our long-term stockholders, investors, and partners who have supported FF. It marks a true turning point.”
Moving forward, the Company is launching an upgraded Ten-Punch Combo and do everything we can to achieve four important goals across the next four stages. It is making every effort to generate sustainable and growing positive cash flow as quickly and cost-effectively as possible. Through four phases—short term (180 days), near term (1 year), mid-term (3 years), and long term (5 years)—FF will achieve its four upgraded goals in business, finance, capital markets, and AI & system building, thereby restoring market confidence and delivering maximum value to its stockholders.
Phase One: In terms of capital targets, win the 180-day battle to ensure share price compliance. The Company received a notice from Nasdaq on March 20 regarding a 180-day compliance period to meet the minimum $1 per share price requirement; FF will make every effort to regain compliance without implementing a reverse stock split.
FF will announce the other three major targets for Phase 1, as well as the targets for Phases 2, 3, and 4 and the associated upgrade on Ten-Punch Combo after Board approval. FF will present them in the form of an open letter to its stockholders and other externally interested parties.
ABOUT FARADAY FUTURE
Faraday Future is a California-based global intelligent Company founded in 2014 and is dedicated to reshaping the future of mobility through vehicle electrification, intelligent technologies, and AI innovation. Its flagship vehicle, the FF 91, began deliveries in 2023 and reflects the brand’s pursuit of ultra-luxury, cutting-edge technology, and high performance. FF’s second brand, FX, targets the high-volume mainstream vehicle market. Its first model, Super One, is positioned as a first-class EAI-MPV, with deliveries planned to begin in 2026. FF recently announced its entry into the Embodied AI Robotics business with sales beginning this year, connecting its future strategy of bringing a new era of EAI vehicles and EAI robotics. For more information, please visit https://www.ff.com/