Faraday Future settles $7.5M payments to founder-linked entity as SEC probe closes
The electric vehicle startup, which lost nearly $400 million last year, has pivoted to importing vans and robots while the Securities and Exchange Commission closed its four-year inquiry in March 2026.
Electric vehicle startup Faraday Future disclosed in a recent annual proxy filing that it paid approximately $7.5 million to FF Global Partners LLC in 2025. The entity is controlled by founder Jia Yueting, and the payments were made while the firm was under an active investigation by the Securities and Exchange Commission into related party transactions and potential misrepresentations.
The regulatory probe, which had lasted four years, was formally closed in March 2026. Despite earlier recommendations for enforcement action, the SEC dropped the investigation. The timing of the closure coincides with a reported historic decline in white-collar crime enforcement during the second Trump administration.
The $7.5 million outlay comprised specific components detailed in the filing, including monthly consulting fees of $100,000, a $2 million bonus payment, and $1.7 million in loan repayments. However, the filing noted that the remaining $2.6 million of the total payment was not explained by the company. FF Global Partners LLC is described as an affiliate of Jia Yueting, who holds one of five voting manager positions alongside business associates and his nephew, Jerry Wang.
The relationship between the startup and the founder-linked entity has been a source of significant concern for investors. Faraday Future has flagged in its filings that Jia and FF Global control almost every aspect of the company, creating a risk that their interests may not align with the firm's financial objectives. This dynamic has persisted since Jia was reinstated as sole CEO last year following a period where he was sidelined by the board in early 2022 after allegations of misrepresenting his level of control during the 2021 IPO.
Financially, the startup has struggled to deliver on its original EV promises, having sold only four vehicles in 2025 and recording a loss of nearly $400 million for the year. In response to these challenges, Faraday Future has pivoted its strategy to selling cheaper vans and robots imported from China. The company has not responded to requests for comment regarding the payments or the broader governance issues.
The background of the investigation dates back to 2022, when FF Global Partners LLC attempted to replace board members with allies of Jia Yueting. This campaign reportedly involved death threats against directors, leading to their resignations and allowing Jia to regain control. The SEC's original inquiry also examined whether the company properly represented Jia's influence and whether it lied about early electric vehicle sales in 2023.
