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Faraday Future Says Ethical Lapses Led to Inaccurate Filings

  • Electric-vehicle startup reports conclusions of internal probe
  • Weak compliance led to inaccurate disclosures, firm tells SEC
Faraday Future Founder Jia Yueting

Faraday Future Founder Jia Yueting

Photographer: Patrick T. Fallon/Bloomberg

Faraday Future Intelligent Electric Inc., the electric-vehicle startup that shook up its executive ranks last month, said a recently completed internal investigation found that its leaders didn’t demonstrate “a commitment to maintain integrity and ethical values.”

This “material weakness” in financial reporting was disclosed in the company’s Form 10-Q for the third quarter of 2021, which was filed late Friday. That was the deadline for Faraday Future to submit the document to the US Securities and Exchange Commission or risk being delisted from the Nasdaq.