Faraday Future, an EV Startup, Has Received a Subpoena From The Securities and Exchange Commission!
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The shares of Faraday Future Intelligent Electric Inc. plummeted after the electric car firm confirmed that it is being investigated by the Securities and Exchange Commission.
Members of the management team and workers have recently received subpoenas in connection with a formal investigation into the firm, according to a statement released by Faraday on Thursday. The firm is completely cooperating with the probe, which Faraday claims is connected to an ongoing internal investigation.
Faraday has been investigating CEO misrepresentations to investors in the run-up to its 2021 merger with a SPAC. As a result of the findings, the company revealed compensation cutbacks for its chief executive officer and founder, as well as several staff departures.
The firm also said on Thursday that it expects to postpone the filing of its annual report while it does further investigative work. Faraday Future Intelligent Electric Inc.’s shares were down by 8.4% at 9:53 a.m. in New York, after falling as much as 13% earlier.