BEIJING, November 26 (TMTPOST) — EV startup Faraday Future, founded by controversial Chinese entrepreneur Jia Yueting, has received a delisting warning from NASDAQ due to its failure to file its quarterly earnings report in time.
Faraday Future is required to submit its quarterly earnings report ending on September 30, 2021, within 60 days or it may face delisting from the stock exchange.
The EV startup recently informed the U.S. Securities and Exchange Commission that it would not be able to submit its 10-Q form for the Q3 report because the company’s board is facing accusations of inaccurate disclosure. NASDAQ then issued the delisting warning as a result.
Faraday Future has explained the situation to NASDAQ after receiving the delisting notice, the company said.
The EV company has formed a committee of the board of directors to investigate the accusations made by short-seller J Capital Research.
Last month, J Capital Research issued a report on Faraday Future titled Move Over Lordstown: There's a New EV Scam in Town, which claims that the EV maker’s several factories were either delayed or abandoned.
J Capital Research’s report points out that Faraday Future has failed to start producing cars that are expected to be sold at US$200,000 or more after eight years’ operation. "After eight years in business, FFIE has failed to deliver a car and is yet again saying ‘next year,” the report says.
“We don't think Faraday Future (FFIE), an EV SPAC, will ever sell a car. So far, it's nothing but a bucket to collect money from U.S. investors and pour it into the black hole of debt created by its founder, China's best-known securities fraudster, Jia Yueting,” J Capital Research stated in the report.
Faraday Future went public on the NASDAQ on July 22, 2021 through a merger with Property Solutions Acquisition Corp (PSAC), a special purpose acquisition company (SPAC), at an offering price of US$13.78.
The EV company's founder Jia Yueting is considered by many as a fraudster back home. Jia had been fined by China Securities Regulatory Commission 241 million yuan (US$36.8 million) for a financial fraud involving Le.com running from 2007 to 2016.