Faraday Future made inaccurate statements to investors, review finds

Employees of electric vehicle (EV) maker Faraday Future Intelligent Electric Inc made inaccurate statements to investors, the firm has said, citing a review.

Faraday Future also announced changes in its leadership structure.

Faraday has appointed Susan Swenson, currently an independent member of its board, to the newly created position of executive chairperson of the company.

Swension will receive reports from Faraday’s chief executive officer Carsten Breitfield and founder Jia Yueting.

Faraday had been accused of inaccurate disclosures with short-seller J Capital being the most vocal. The short-seller had called Faraday “a new EV scam in town”.

In November, Faraday had delayed the filing of its quarterly report and had formed a special committee to review allegations of inaccurate disclosures.

Faraday has agreed that some of his employees made misleading statements but maintained that allegations made in the short-seller report were not supported by the evidence reviewed.

Faraday went public in July through a SPAC deal with Property Solutions Acquisition Corp.