Faraday Future Delays Q3 Earnings Filing While Investigating Claims of Inaccurate Disclosures

Faraday Future
(Source: Faraday Future)

EV startup Faraday Future said in a filing on Monday that it is delaying its third-quarter financial report in order to complete an investigation into “allegations of inaccurate disclosures,” CNBC reported Tuesday.

Faraday Future said that it lost $280 million in the third quarter of 2021, even though its financial filing had to be delayed. The company also reiterated plans to start deliveries of the company’s FF91 vehicles in July next year.

Founded in May 2014, Faraday Future went public via a special purpose acquisition company and private investment in public equity deal in July this year.

The delay follows a J Capital Research equity research report in early October in which analysts accused Faraday Future of fabricating vehicle reservation numbers – one indication of demand for the company’s future cars. The report also accused Faraday Future of lying about its capability to initiate mass production of electric cars in in Hanford, California.

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The EV startup’s board of directors has formed a special committee of independent directors (the “Special Committee”), which has hired a law firm to perform the investigation. Faraday Future wrote in the filing: “The investigation is ongoing, and the Special Committee continues to work diligently with outside counsel and advisors to complete the investigation as soon as possible. The company cannot predict the duration of the investigation, eventual scope, its outcome, or its impact on the company’s financial results.”