Faraday Future says the evaluate discovered inaccurate statements to buyers

©Reuters. FILE PHOTO: Faraday Future's FF91 luxury electric car is seen at the company's headquarters in Gardena, California, on November 21, 2019. REUTERS/Lucy Nicholson

(Reuters) – Electric vehicle company Faraday Future Intelligent Electric Inc said on Tuesday its review identified certain inaccurate statements made by its employees to investors and announced changes in its management structure.

Faraday said it has appointed Susan Swenson, currently an independent director, to the newly created position of chief executive officer of the company.

The company said its CEO Carsten Breitfield and founder Jia Yueting would each receive a 25% cut in their annual base salaries. Both Breitfield and Yueting would report to the newly appointed chief executive, Faraday said.

Faraday had delayed filing its quarterly report in November and said it had formed a special committee to review allegations of inaccurate disclosures, including allegations by short seller J Capital. The short seller had called Faraday "a new EV scam in town."

On Tuesday, Faraday said testimonies by some of his employees to certain investors describing founder Jia Yueting's role within the company were inaccurate and his involvement in running the company following its merger with blank check firm Property Solutions Acquisition Corp "more meaningful than what was being portrayed ."

However, the company maintained that the claims made in the short seller report were not supported by the verified evidence.

Several EV companies including Lordstown Motors, Nikola, both of which went public through special purpose acquisition company (SPAC) takeovers, have come under investigation for misrepresentation by former top executives and are under the scrutiny of short sellers.

The chairman and CEO of Electric Last Mile Solutions Inc, which also went public through a SPAC, resigned Tuesday following an investigation into its stock purchases.

Further investigations based on the select committee's findings would be led by the chief executive officer, Faraday said.

Faraday went through a SPAC deal with Property Solutions Acquisition Corp in July. to the stock exchange.

Disclaimer: Fusion Media would like to remind you that the data contained on this website is not necessarily real-time or accurate. All CFDs (stocks, indices, futures) and forex prices are provided by market makers rather than exchanges and as such prices may not be accurate and may vary from actual market price meaning prices are indicative and not for trading purposes are suitable. Therefore, Fusion Media accepts no responsibility for any trading loss that you may incur as a result of using this data.

Fusion Media or anyone associated with Fusion Media shall not be liable for any loss or damage arising out of reliance on any information, including data, quotes, charts and buy/sell signals, contained on this website. Please educate yourself fully about the risks and costs associated with trading the financial markets as this is one of the riskiest forms of investment of all.

Related Articles