The Securities and Exchange Commission has closed its four-year investigation into Faraday Future, an electric vehicle (EV) startup that’s been mired in controversy since going public in 2021.

This decision comes amid a broader trend of reduced enforcement actions by the SEC. In its 2025 fiscal year, it only initiated four cases against publicly-traded companies, according to recent reports. The SEC did not respond to requests for comment on this specific case.

Faraday Future faced allegations that it made false and misleading statements during its initial public offering (IPO), as well as claims about faking the sales of its first electric vehicles in 2023, according to at least three former employee whistleblowers. The company has always maintained its innocence, stating in regulatory filings last month that they would engage with the SEC to explain why enforcement action is not warranted.

Despite receiving multiple subpoenas and undergoing extensive questioning of former employees and executives, the SEC ultimately decided against pursuing an enforcement action. This move echoes a broader trend where the SEC has been less aggressive in its investigations, as seen in dismissals for other EV startups like Lucid Motors and Fisker last year.

The origins of Faraday Future trace back to 2014 when it was founded by Jia Yueting, a businessman with ties to China’s LeEco. The company’s journey has been tumultuous, marked by financial struggles, layoffs, and even personal bankruptcy for its founder. Yet, despite these challenges, the SEC’s decision not to pursue an enforcement action signals a significant turning point in the startup’s history.