
Faraday Future Responds to Potential Illegal Short Selling and Online Misinformation to Defend Shareholder Value
Faraday Future Intelligent Electric Inc. a California-based company pioneering shared intelligent electric mobility, has issued a formal statement addressing recent activities it believes may constitute illegal short selling and the intentional dissemination of false information across social media platforms. The company emphasized its unwavering commitment to protecting its shareholders, maintaining market integrity, and taking firm legal action against malicious actors.
The following is a comprehensive overview of Faraday Future’s official position and the measures it is undertaking to protect its business and investor interests in light of recent developments.
Statement from Faraday Future: Addressing Market Manipulation and Online Misinformation
Faraday Future has become increasingly aware of coordinated efforts aimed at undermining the company’s reputation and share value. According to the company, certain individuals and groups have consistently shared inaccurate, misleading, and defamatory information about Faraday Future through various social media platforms in several countries. These activities, in the company’s view, appear to be part of a broader pattern of reputational attacks and potential market manipulation.
In response, Faraday Future has released a detailed statement outlining its zero-tolerance stance on both illegal short selling and the intentional spread of misinformation. The company is pursuing a multi-pronged legal and regulatory approach to counteract these alleged activities.
1. Zero Tolerance for Illegal Short Selling
Faraday Future has reaffirmed its strong opposition to any illegal trading activities that may manipulate its stock price. Since 2023, the company has been actively investigating financial institutions and individuals suspected of engaging in illegal short selling of its publicly traded shares.
The company states that it is “fully committed to protecting its shareholders and upholding the integrity of the financial markets.” As part of this commitment, Faraday Future will continue to scrutinize potentially illicit trading behavior and work with relevant authorities to ensure that market participants abide by fair and legal practices.
“Any evidence of illegal short selling will be met with appropriate legal and regulatory action,” the company said. “We will do everything within our power to ensure that our stock is not manipulated to the detriment of honest investors.”
The company’s efforts include monitoring trading patterns, engaging with regulatory bodies such as the U.S. Securities and Exchange Commission (SEC), and exploring enforcement options where warranted.
2. Zero Tolerance for False and Misleading Online Attacks
In addition to suspicious trading activity, Faraday Future has also identified a coordinated effort by certain individuals and entities to tarnish its image by spreading knowingly false and misleading claims online.
These claims have reportedly surfaced on social media platforms in multiple jurisdictions and are believed to be part of a targeted disinformation campaign. According to Faraday Future, the intent behind these posts is to mislead investors, sow doubt about the company’s financial health and operations, and create downward pressure on its stock price.
The company has already taken initial action, resulting in some individuals and associated social media accounts voluntarily removing defamatory content and halting further posts. However, Faraday Future made clear that it will continue to actively monitor and address any future attempts to distribute false narratives.
“We will remain vigilant and will not hesitate to pursue those who intentionally attempt to deceive the public and damage our reputation,” the company stated.
3. Legal Action: Holding Offenders Accountable
Faraday Future is moving aggressively on the legal front. The company has assembled a cross-border legal task force to pursue appropriate remedies against any party found to be engaging in defamation, illegal short selling, or privacy violations.
This legal strategy includes the potential for filing lawsuits and submitting formal reports to regulatory bodies in the U.S. and other jurisdictions. The company emphasized that it will pursue all legal options available under local and international law, including but not limited to:
- Filing lawsuits against those involved in market manipulation, defamation, and the intentional dissemination of false information;
- Seeking court injunctions to preserve assets and prohibit further infringing behavior;
- Working in collaboration with law enforcement and regulatory authorities to identify and investigate individuals or organizations responsible for unlawful conduct.
Faraday Future issued a firm warning to those involved: “We demand the immediate cessation of all unlawful and harmful activities directed at the Company. Any further actions to damage the Company’s interests will result in legal consequences.”
The company believes that these legal actions are necessary not only to protect its own operations and stakeholders but also to support the broader goal of maintaining fairness and transparency in the public markets.
Reinforcing Shareholder Confidence and Market Integrity
As a company listed on the NASDAQ and committed to long-term innovation in the electric vehicle sector, Faraday Future sees this issue as a matter of market integrity and corporate responsibility. The firm reiterated that it is taking these threats seriously and is deploying all available resources to confront and neutralize them.
“Protecting our investors is a top priority,” the company stated. “We will not allow unfounded rumors or malicious market activity to undermine the work we are doing or the trust our stakeholders place in us.”
The company encouraged shareholders and members of the public to report any suspicious or defamatory content they encounter online to company officials or legal representatives, as this information could aid in ongoing investigations.
A Call for Transparency and Accountability
In issuing this statement, Faraday Future also called for greater industry-wide accountability for those who use social media and other public platforms to spread misinformation for financial gain. The company argued that platforms and regulators must do more to prevent abuse and hold bad actors accountable.
“Manipulating public perception through false narratives is not only unethical—it is illegal,” the company emphasized. “We are standing up not just for our company, but for the principles of truth and fairness in the marketplace.