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EV Startup Faraday Future Tumbles After Disclosing SEC Probe

March 31, 2022, 2:10 PM

Faraday Future Intelligent Electric Inc.’s stock plunged after the electric-vehicle startup revealed it’s under investigation by the U.S. Securities and Exchange Commission.

Members of the management team and employees recently received subpoenas related to a formal probe of the company, Faraday said Thursday in a statement. The company is “cooperating fully” with the investigation, which Faraday said is related to an internal inquiry previously underway.

Faraday had been looking into false representations made by executives to investors around its 2021 merger with a special purpose acquisition company. The company announced pay cuts for its chief executive officer ...