EV startup Faraday Future paid $7.5M to company tied to founder Jia Yueting – Image for illustrative purposes only (Image credits: Unsplash)
Shareholders in Faraday Future Intelligent Electric Inc. now confront fresh details of substantial payments to an entity closely linked to the company’s founder, even as the firm posted massive losses and minimal vehicle deliveries last year. These transactions, totaling around $7.5 million, flowed to FF Global Partners LLC, over which Jia Yueting holds significant sway, during a period of intense regulatory scrutiny.[1][2] The revelations appear in a recent annual proxy filing and underscore persistent questions about related-party dealings at the California-based electric vehicle startup.
The Payments at the Center of Attention
Faraday Future disbursed the funds to FF Global Partners LLC throughout 2025, a year marked by the company’s delivery of just four vehicles and a reported net loss approaching $400 million. The proxy filing breaks down most of the amount: monthly consulting fees of $100,000, a $2 million bonus payment, and $1.7 million to settle loans. An additional $2.6 million remains unexplained in the document.[1]
FF Global qualifies as an affiliate of Jia Yueting, with the founder serving among its five voting managers alongside business associates and family members, including his nephew Jerry Wang. Wang, who holds the title of president at Faraday Future, receives a six-figure salary from FF Global, as does his wife, who leads the firm’s legal department. These ties extend further, with FF Global maintaining a consulting agreement with AIXC, a cryptocurrency venture run by Wang and advised by Jia.[1]
- Monthly consulting fees: $100,000 each
- Bonus payment: $2 million
- Loan repayments: $1.7 million
- Unspecified: $2.6 million
SEC Probe Looms Over Related Transactions
Regulators at the Securities and Exchange Commission examined these very types of related-party transactions as part of a four-year investigation that concluded without enforcement action in March 2026. The probe, which began in early 2022 following referrals from Faraday Future’s own board, focused on potential misrepresentations of Jia’s influence during the company’s 2021 SPAC merger and claims of inflated early vehicle sales in 2023.[3][1]
By July 2025, the SEC issued Wells notices to Faraday Future, Jia, and other executives, signaling staff recommendations for action. Yet the agency ultimately closed the matter, a decision Jia hailed as a milestone. “We can now put all our energy into strategy execution,” he stated in a company release, noting the resources diverted over five years.[4] The outcome arrived amid a noted decline in SEC white-collar enforcement cases.
Jia Yueting’s Resurgent Role and Control Dynamics
Jia Yueting founded Faraday Future in 2014 after building LeEco, a Chinese tech conglomerate that unraveled amid debt issues, leading to his placement on a debtor blacklist in China. He nominally stepped back as CEO in 2019 amid personal bankruptcy proceedings but retained substantial behind-the-scenes authority. Post-SPAC in 2021, a board probe uncovered undisclosed control and related loans from Jia-connected employees, prompting his temporary sidelining in 2022.[3]
FF Global played a pivotal role in his return, mounting a campaign that year to oust board members – some of whom received death threats and resigned. Jia reclaimed co-CEO status in 2025 and now serves as sole CEO. The company acknowledges in filings that Jia and FF Global, a major shareholder, dominate management and operations, posing risks of decisions misaligned with broader interests.[1]
Faraday Future’s Shift Amid Financial Pressures
Once aiming to rival Tesla with luxury SUVs like the FF91, Faraday Future has pivoted to importing lower-cost vans and robots from China while struggling to scale production. The firm faces a Nasdaq delisting warning for trading below $1 per share and continues to service debts tied to Jia’s network, including $700,000 paid last year to a related loan entity and $8.5 million owed to LeEco affiliate Leshi for advertising.[1]
Executives now outline a “Ten-Punch Combo” strategy across four phases to achieve cash flow positivity, regain stock compliance without a reverse split, and refocus on embodied AI vehicles and robotics. Regulatory clearance offers a chance to attract partners and talent previously deterred by uncertainty.[4]
What Lies Ahead for Stakeholders
Investors, employees, and partners weigh a company freed from SEC overhang but burdened by founder-centric governance and operational hurdles. While Jia emphasizes value creation, disclosures like the FF Global payments highlight vulnerabilities that could sway confidence. Faraday Future’s path forward hinges on execution in a competitive EV landscape, where survival demands more than regulatory wins – it requires tangible progress and transparency to safeguard those holding stakes in its turbulent journey.