In 2025, Faraday Future transferred around $7.5 million to FF Global Partners LLC, a company tied to its controversial founder Jia Yueting, while under SEC scrutiny for related-party transactions and corporate disclosures.
- Faraday Future paid $7.5 million to a Jia-linked entity in 2025.
- The payments happened amid a four-year SEC investigation into founder control and disclosures.
- The SEC dropped the case in March despite prior enforcement recommendations.
What happened
Faraday Future made multiple payments totaling approximately $7.5 million to FF Global Partners LLC throughout 2025, a company over which founder Jia Yueting exerts significant influence. The payments included monthly consulting fees, a bonus, and loan repayments, though part of the total sum was left unexplained in the filings. This financial activity coincided with a year in which Faraday Future reported only four vehicle deliveries and suffered nearly $400 million in losses.
FF Global is deeply intertwined with Faraday Future’s management and ownership structure, holding major shares and controlling key decisions alongside Jia. Faraday Future’s filings acknowledge the risks posed by Jia’s control over FF Global, including potential conflicts with its business and financial goals. This disclosure came amid ongoing board struggles, including the sidelining and reinstatement of Jia as CEO and intense internal power battles that led to board resignations.
Why it matters
The payments highlight the complicated and controversial financial relationships between Faraday Future and its founder, who has a history of financial and legal troubles, including being blacklisted in China for fraud. These transactions took place while the company was being investigated by the SEC for whether it had accurately disclosed founder control and sales milestones, raising concerns about governance and transparency.
The closure of the SEC’s four-year probe without enforcement action—despite recommendations to pursue one—underscores a broader decline in white-collar crime enforcement during the later Trump administration. This outcome leaves unanswered questions over regulatory oversight and investors’ protection, especially for a startup struggling to survive amid intense internal conflicts and financial losses.
What to watch next
Attention will focus on how Faraday Future navigates ongoing operational and governance challenges, including potential further related-party transactions and the founder’s commanding influence through FF Global. The company’s pivot towards more affordable vans and robotics from China signals a shift in strategy, but questions remain about financial discipline and transparency.
Investors and regulators will likely scrutinize future filings for clearer disclosures surrounding payments to entities linked to Jia and related parties. Given past board turmoil and the founder’s reinstatement as sole CEO, Faraday Future’s governance practices and how it manages its founder’s control could critically affect its ability to regain trust and stabilize its business.