On September 12, Faraday Future (FF) issued an official statement saying that it had recently noticed that Wolfpack Research had published a malicious short-selling report targeting FF and its founder and Co-CEO, Jia Yueting, for its own profit. FF strongly condemned the firm’s actions, issued a stern statement demanding that Wolfpack Research cease its infringing conduct, and announced plans to take legal action to safeguard shareholder value and seek compensation for the harm caused to FF, its shareholders, and its management team.
Faraday Future pointed out that the short-selling report was a patchwork of outdated, fragmented public information, taken out of context, with malicious speculation and misleading commentary aimed at misleading investors, triggering panic selling of FF stock, and profiting from the resulting price drop. FF stated that this had seriously damaged the company’s reputation and directly harmed shareholders’ lawful interests. The company further emphasized that Wolfpack Research’s so-called “research report” was entirely unreliable. FF is investigating Wolfpack’s malicious actions and will take all available legal measures to protect the company’s and its shareholders’ legal rights.
Responding to the short-selling incident, FF founder Jia Yueting stated that the company would immediately initiate legal proceedings against Wolfpack Research and file a formal complaint with the U.S. Securities and Exchange Commission (SEC). FF has engaged Paul Hastings LLP as legal counsel to assist with the matter and is investigating Wolfpack’s malicious behavior. The company has demanded that Wolfpack immediately stop infringing acts and will take all possible legal action to protect shareholder value and seek compensation for the losses and harm caused to FF, its shareholders, and its management.
It is worth noting that this is not the first time Faraday Future has been targeted by short-sellers. In April of this year, after FF’s stock price fell sharply, Jia Yueting stated that FF had once again become the target of malicious short-sellers. He pointed out that this wave of short-selling was not due to FF’s fundamentals but was driven by illegal market players exploiting external negative factors such as tariff uncertainty and stock market downturns to spread fear, manipulate the market, and profit continuously.
As far back as 2021, U.S.-based short-selling firm J Capital Research alleged that Faraday Future “could not sell a single car.” At the time, Jia Yueting dismissed the claim as “rehashing old rumors and sheer nonsense,” reminding J Capital Research that it had “been proven wrong before.” FF representatives also expressed disappointment, saying that the report was filled with misleading information, lacked logic, and had no factual basis. FF condemned such irresponsible behavior and reserved the right to pursue legal action against these false accusations.
Since its inception, Faraday Future has faced skepticism due to persistent funding shortages, and its stock price has rarely seen major rallies. In an effort to regain investor confidence, FF carried out a major management reshuffle in 2023, appointing a new global CEO and launching a management stock purchase plan to strengthen alignment with shareholders. In April of this year, Jia Yueting was appointed as FF’s Co-CEO, with both his salary and equity incentives tied to FF’s stock price, market capitalization, and shareholder KPIs. Jia said this arrangement was meant to fulfill his long-standing commitment to domestic creditors and to respond with concrete actions to doubts about his personal credit and responsibility. He pledged to work together with current Global CEO Matthias under a “Founder + Professional Manager” model, joining forces with all FF colleagues to turn the company around, rebuild trust and confidence, and implement a “Shareholders First” strategy to rapidly lead FF and FX to success and create maximum value for shareholders.
Despite Jia’s efforts to boost FF’s stock price, funding shortages have prevented the company from gaining full recognition from the capital markets, and share price growth has been slow. For FF at this stage, perhaps the most direct way forward is to accelerate the launch of its second brand’s new model to dispel market concerns. As of the close on September 12, Faraday Future’s stock price stood at $1.72 per share.
