Business · Hanford

Hanford-based EV manufacturing hopeful Faraday Future launches probe over fraud allegations

Faraday Future is in the midst of an investigation into recent allegations of financial fraud at the startup, including claims from a recent short-seller report by J Capital.

The electric vehicle startup’s board of directors has formed a “special committee of independent directors,” which has hired a law firm to perform the investigation.

The EV firm purchased an abandoned Pirelli plant outside of Hanford for production on its first electric car in 2017.

J Capital had accused Faraday Future of lying about the number of reservations it had collected for its ultra-expensive electric SUV, the FF91. It also accused Faraday Future’s founder Jia Yueting of unfairly benefitting from the startup’s recent public listing, which it accomplished after merging with a special purpose acquisition company.

“Faraday Future seeks to do business in the most ethical and transparent way,” the company said in a press release. “As a new public company, the Board, as part of its review, is seeking to ensure that the Company is adhering to the highest standards of conduct.”

Tuesday, law firm Bragar Eagel & Squire, P.C. issued an alert to investors to provide claims related to investment loss tied to the report from J Capital.

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Staff reports from The San Joaquin Valley Sun staff.