Faraday Future examines allegations of inaccurate disclosures



Faraday Future’s FF 91 electric crossover prototype is presented during a press event for CES 2017 at the Pavilions at Las Vegas Market on January 3, 2017 in Las Vegas.

Getty Images

Electric vehicle pre-production company Faraday Future is delaying its third quarter financial report in order to complete an investigation into “allegations of inaccurate disclosures,” the company said in a filing Monday.

The delay follows a J Capital Research stock research report released in early October in which analysts accused Faraday Future of fabricating vehicle reservation numbers, an indication of demand for the company’s future cars. . The report also accuses Faraday Future of lying about his ability to start mass production of electric cars in Hanford, Calif., Within about seven months, among a myriad of other concerns.

Faraday Future, in a press release Monday, reiterated its intention to begin deliveries of the company’s FF91 vehicles in July of next year. The long-delayed all-electric crossover, which is said to include “driverless valet parking” and other high-tech features, was first unveiled at the Consumer Electronics Show in January 2017.

The company also said it lost $ 280 million in the third quarter of 2021, although its financial filing had to be delayed.

Founded in May 2014, Faraday Future went public through a Special Purpose Acquisition Company (SPAC) and a Public Private Equity Investment (PIPE) in July of this year.

Former CEO Jia Yueting, filed for Chapter 11 personal bankruptcy in the fourth quarter of 2019 and now serves as the company’s head of product and ecosystem.

In the burgeoning electric vehicle industry, several small players have come under federal investigation after short sellers accused them of fraud, including Lordstown Motors, Nikola and the Workhorse Group. Canoo has also been the subject of a federal investigation after a series of executive departures and strong short-term interest.

In contrast, another newcomer to electric vehicles, Rivian, recorded a record-breaking IPO last week and saw stocks continue to rise by around 15% on Monday as President Biden signed a bill. bipartite on infrastructure that is expected to pay $ 550 billion in government money. in transportation, broadband and utilities, including $ 75 billion to help create a network of charging stations for electric vehicles.



Comments are closed.