Faraday Future Takes Strong Stance Against Suspected Illegal Short Selling and Online Misinformation to Defend Shareholder Interests
Faraday Future Intelligent Electric Inc. (NASDAQ: FFAI), a California-based global shared intelligent electric mobility ecosystem company, has issued a formal statement addressing what it identifies as potentially illegal short selling of its stock and the deliberate spread of false and misleading information across social media platforms. The Company emphasized its firm commitment to protecting shareholders, preserving market integrity, and pursuing legal accountability for any actors found to be engaged in unlawful conduct.
Company Statement on Market Manipulation and Online Infringement
Faraday Future (“FF” or “the Company”) has grown increasingly concerned over coordinated efforts that appear to be aimed at undermining the value of its stock and damaging its corporate reputation. These concerns stem from two key sources: suspected illegal short selling activities and the targeted dissemination of falsehoods through online platforms.
In response, the Company has issued a detailed public statement outlining the steps it has taken, and will continue to take, to protect the interests of its stockholders and to hold accountable those who seek to cause harm through unlawful means. The statement outlines a zero-tolerance policy toward illegal financial manipulation and reputational sabotage, and it signals the beginning of more aggressive legal and regulatory action.
1. Commitment to Combating Illegal Short Selling
Since 2023, Faraday Future has actively investigated what it believes to be instances of illegal short selling involving its publicly traded stock. Illegal short selling typically involves manipulative practices such as “naked” short selling—where shares are sold without being borrowed or even located—thus distorting natural market conditions and exerting artificial downward pressure on a company’s stock price.
The Company reiterated its firm position against these practices, noting that they not only violate securities laws but also pose significant threats to investor confidence and overall market fairness.
“Faraday Future is committed to protecting its investors and maximizing long-term shareholder value,” the statement reads. “We will take all actions necessary to ensure that our stock is not the target of illegal market manipulation.”
To that end, the Company is expanding its efforts to identify and challenge suspect trading behavior. It plans to work closely with regulatory authorities, financial exchanges, and legal experts to expose and counter any manipulation of its securities. These efforts may involve audits, trading data analysis, and formal complaints filed with relevant government and regulatory bodies.
2. Zero Tolerance for False and Misleading Online Content
Alongside concerns over financial manipulation, Faraday Future has also been tracking a pattern of disinformation circulating on various social media platforms. According to the Company, a group of individuals has deliberately posted inaccurate, misleading, and in some cases defamatory content about Faraday Future across multiple countries and platforms.
This false narrative, the Company believes, is part of a broader attempt to undermine its public image, disrupt operations, and erode investor trust. The nature of the claims varies but often includes exaggerations or outright fabrications regarding the Company’s financial health, leadership decisions, technological capabilities, and business prospects.
In response, the Company has already taken direct action to confront the individuals responsible. In several instances, this has led to the removal of false content and the voluntary deactivation or suspension of offending social media accounts.
“We have acted swiftly in cases where false and misleading information has been posted. In many cases, the perpetrators have removed the content after being contacted,” the Company said. “But we will continue to monitor and address any future attempts to spread deliberate misinformation.”
Faraday Future is also encouraging the public and investors to verify information through official company channels and not to rely on unverified sources that may have ulterior motives or be acting in bad faith.
3. Legal Action and International Enforcement
To further bolster its efforts, Faraday Future has assembled a cross-border legal team tasked with identifying and prosecuting individuals or entities that engage in illegal short selling, defamation, or other forms of reputational harm. The legal team includes experts in securities law, defamation, privacy, and intellectual property rights across multiple jurisdictions.
“We will initiate lawsuits, file complaints with relevant regulators, and pursue all available legal remedies against those who attempt to harm Faraday Future through illegal or unethical means,” the Company stated.
Planned legal actions may include, but are not limited to:
- Civil lawsuits for illegal market manipulation, defamation, the intentional dissemination of false statements, and privacy violations.
- Injunctions seeking asset preservation and prohibitions on continued harmful behavior to prevent ongoing or future violations.
- Regulatory cooperation, including sharing evidence and formal complaints with enforcement bodies in the U.S. and abroad.
The Company emphasized that these steps are not only intended to address current threats but also to deter future attempts by malicious actors to target the Company or its stakeholders.
Public Warning and Final Call to Action
In its statement, Faraday Future issued a direct warning to individuals or groups engaged in these disruptive and unlawful activities. The Company is demanding that all infringing conduct cease immediately and cautioned that anyone who persists in such actions will face serious legal consequences.
“Any attempt to harm the Company’s interests through illegal means will be met with decisive legal action. Faraday Future will not tolerate any violation of its rights or the rights of its investors. We are prepared to defend our reputation, our operations, and our shareholders with the full weight of the law.”
Maintaining Market Integrity and Investor Trust
Faraday Future’s strong public stance underscores its focus on corporate governance, regulatory compliance, and investor protection at a critical juncture in its development. As the Company works to advance its intelligent electric mobility ecosystem and bring innovative vehicles to market, it remains equally focused on creating a transparent and fair environment for capital markets participation.
The Company called on fellow publicly traded companies, regulators, and investors to unite against manipulation and disinformation, which have become increasingly prevalent in the digital age. With online platforms offering global reach and anonymity, misinformation can quickly erode value and mislead retail investors—creating an urgent need for accountability and verification.
Faraday Future
Faraday Future Intelligent Electric Inc. is an emerging leader in the smart electric mobility space. Headquartered in California, the Company is developing an intelligent, user-centric, and connected vehicle ecosystem with a global outlook. Its flagship electric vehicle, the FF 91, reflects the Company’s vision for a new era of mobility that prioritizes sustainability, innovation, and digital intelligence.
