Faraday Future paid $7.5 million to a company connected to founder Jia Yueting while facing SEC investigation. The payments went through during a four-year probe that closed in March, raising questions about the timing and nature of the transactions.
Yueting founded the struggling EV startup in 2014 with ambitions to challenge Tesla. The company burned through billions in funding but failed to deliver vehicles at scale. Multiple production delays, missed deadlines, and leadership chaos plagued the operation from day one.
The $7.5 million payments to a Yueting-linked entity occurred as regulators scrutinized the company's financial practices. The SEC's closure of its investigation suggests either the agency found no violation or reached a settlement. Faraday Future disclosed little about what the payments covered or why a founder-connected company received the funds.
The deal highlights governance risks at startups with charismatic founders. Faraday Future remains unprofitable and cash-strapped, having never scaled production beyond prototypes. The company continues burning capital while Yueting maintains control through complex corporate structures.