Faraday Future Paid $7.5 Million to Founder-Linked Firm Amid SEC Probe Closure

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April 10, 2026

EV Startup’s Controversial Payments Raise Governance Concerns

Faraday Future, the embattled electric vehicle (EV) startup, funneled $7.5 million in payments last year to a company controlled by its controversial founder, Jia Yueting, according to a recent regulatory filing. The transactions occurred during a tumultuous period in which Faraday delivered just four vehicles, hemorrhaged nearly $400 million, and pivoted to selling low-cost Chinese-made vans and robots. The revelations come just weeks after the U.S. Securities and Exchange Commission (SEC) abruptly closed a four-year investigation into the company’s financial disclosures and Jia’s influence—marking another twist in Faraday’s troubled history.

The payments, detailed in Faraday’s annual proxy statement, included $100,000 monthly consulting fees, a $2 million “bonus,” and $1.7 million in loan repayments to FF Global Partners LLC, an entity where Jia holds significant sway. The remaining $2.6 million was not clearly explained in the filing. Faraday Future declined to comment when contacted.

SEC Probe Dropped Despite Red Flags

The SEC’s investigation, launched in 2022, scrutinized whether Faraday misrepresented Jia’s control over the company during its 2021 public listing and whether it inflated early EV sales figures in 2023. The agency also examined related-party transactions between Faraday and Jia-linked entities—a longstanding concern for investors.

Despite issuing preliminary enforcement notices last year, the SEC quietly terminated the probe in March 2026. The decision aligns with a broader decline in white-collar enforcement under the second Trump administration, which has seen SEC actions drop to historic lows. Legal experts suggest the closure may reflect shifting regulatory priorities rather than a clean bill of health for Faraday.

Jia’s Shadow Over Faraday Future

FF Global Partners, described in filings as an “affiliate” of Jia, wields outsized influence over Faraday. The LLC’s voting managers include Jia, his nephew Jerry Wang—a Faraday president—and several close associates. Wang and his wife, who heads FF Global’s legal department, both draw six-figure salaries from the entity.

Faraday has repeatedly warned investors about Jia’s grip on operations, stating in its latest annual report: “Jia and FF Global may use their control in ways inconsistent with our interests.” The admission underscores governance risks that have plagued the company since its SPAC merger in 2021.

Boardroom Battles and Alleged Threats

Jia’s resurgence at Faraday followed a bitter power struggle. In early 2022, an internal probe found he had concealed his control over the company, prompting the board to sideline him and refer findings to the SEC. But FF Global, backed by Jia loyalists, launched a relentless campaign to oust dissenting directors. The backlash grew so intense that some board members reportedly resigned after receiving death threats.

By 2025, Jia was reinstated as co-CEO, and he now holds the sole leadership role. His return coincided with Faraday’s pivot away from luxury EVs—its original mission—toward budget commercial vehicles sourced from China.

Opaque Financial Ties Persist

FF Global isn’t the only Jia-linked entity benefiting from Faraday’s funds. The company disclosed a $700,000 payment last year to a loan firm tied to him and owes $8.5 million to Leshi Information Technology, a subsidiary of Jia’s defunct LeEco empire, for “advertising services.”

Critics argue these transactions raise ethical and legal questions, particularly given Jia’s history. Once a high-flying tech tycoon, he was blacklisted in China for financial fraud and faces billions in unpaid debts. His continued influence at Faraday has fueled skepticism about the company’s long-term viability.

A Precarious Future

Faraday’s latest filings offer little reassurance to investors. The company’s cash reserves are dwindling, its production remains negligible, and its reliance on Jia-affiliated firms persists. While the SEC’s retreat removes one legal overhang, fundamental concerns about transparency and governance remain unaddressed.

For now, Faraday Future’s survival hinges on its ability to execute an unproven business model—all while its founder’s shadow looms large. Whether the EV startup can outrun its past or will succumb to its internal contradictions remains an open question.