The Securities and Exchange Commission (SEC) has closed its four-year-old investigation into electric vehicle startup Faraday Future, despite staff on the case recommending an enforcement action last year. The SEC was investigating whether the startup made false and misleading statements when it went public in 2021, and whether it faked the sales of its first electric vehicle in 2023. The decision comes amid a decrease in SEC enforcement actions, which only initiated four cases against publicly-traded companies in its 2025 fiscal year. FaradayFuture was founded in California in 2014 by businessman Jia Yueting, who later ran a successful tech conglomerate in China. The company had laid off or fired hundreds of employees and filed for bankruptcy in 2019 and raised about $1 billion by 2021.