A new report revealed that luxury electric vehicle manufacturer Faraday Future, which has a plant in Hanford, may have been the target of a market manipulation scheme.
The company announced Thursday that it is working to identify any potential illegal trading activity.
The big picture: Faraday Future has completed the first phase analysis of identifying potential illegal trading activity.
- The company is working with ShareIntel-Shareholder Intelligence Services, LLC in a second phase of work.
- ShareIntel is contracted to help identify potential illegal short selling and other abusive trading activities.
- ShareIntel’s analysis identified reporting imbalances in Faraday Future’s shares that may be material to the company’s public float and average daily trading volume.
- Those imbalances could be a byproduct of non-compliant or illegal trading activities and may indicate that certain traders have sold but failed to deliver a significant number of shares.
What they’re saying: Faraday Future CEO Matthias Aydt said the company is concerned that it was a target of illegal short selling.
- “FF’s Board and management are committed to protecting our investors and maximizing shareholder value, and we will take all actions necessary to ensure FF is not the target of market manipulation,” Aydt said in a statement. “We will continue to work with ShareIntel to combat potentially manipulative and egregious illegal short selling and trading activities to help ensure fair market conditions.”
- ShareIntel CEO David Wenger said his company tracks share ownership and monitors critical broker-dealer and shareholder movements.
- “We look forward to continuing efforts to help Faraday Future Intelligent Electric Inc. identify parties to potentially abusive and illegal naked short selling, implement action plans to mitigate such activity and help maximize shareholder ownership transparency,” Wenger said.