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Faraday Future Names Founder Jia Yueting Co-CEO Amid Ongoing SEC Inquiry
Electric vehicle (EV) startup Faraday Future, facing considerable challenges, has appointed its founder, Jia Yueting, as co-CEO. This decision comes three years after he was initially sidelined following an internal investigation into fraud allegations that triggered an ongoing inquiry by the Securities and Exchange Commission (SEC).
Leadership Restructuring at Faraday Future
Jia Yueting’s New Role
During a press conference on Thursday, the company revealed that Jia will share the CEO role with the incumbent, Matthias Aydt. Jia’s responsibilities will encompass overseeing Faraday’s financial, legal, and supply chain operations. Aydt, who is a long-standing Faraday Future employee, previously faced disciplinary action after offering a substantial sum to a board member to resign during a prolonged internal power struggle.
Recent Appointments and Past Issues
The selection of Jia as co-CEO follows the appointment of his nephew, Jerry Wang, as president of the EV startup just a month prior. Notably, Wang had resigned in 2022 following the internal investigation due to “failure to cooperate,” according to SEC filings.
Faraday Future’s History and Challenges
Origins and Evolution
Jia established Faraday Future in 2014, aiming to leverage his thriving electronics and media enterprise in China. His vision was to create a cutting-edge electric vehicle company.
Financial Difficulties and Production Challenges
However, Jia’s empire eventually faltered, prompting him to relocate to the United States to concentrate on Faraday Future. Over the past decade, the company has invested significantly – exceeding $3 billion – in developing the FF91, an ultra-luxury electric vehicle. Despite this investment, Faraday Future has only completed a handful of sales and currently faces accusations in lawsuits alleging misrepresentation of some sales achievements.
Key challenges for Faraday Future:
- Navigating ongoing SEC investigations.
- Achieving substantial sales of the FF91.
- Strengthening its financial stability.