(Bloomberg) -- Faraday Future Intelligent Electric Inc.'s stock plunged after the electric-vehicle startup revealed it's under investigation by the U.S. Securities and Exchange Commission.
Members of the management team and employees recently received subpoenas related to a formal probe of the company, Faraday said Thursday in a statement. The company is “cooperating fully” with the investigation, which Faraday said is related to an internal inquiry previously underway.
Faraday had been looking into false representations made by executives to investors around its 2021 merger with a special purpose acquisition company. The company announced pay cuts for its chief executive officer and founder as a result of those findings, which also prompted some employee departures.
The startup also said Thursday that it expects a delay in the filing of its annual report as it completes “additional investigative work.”
Faraday shares fell 8.4% at 9:53 a.m. in New York after a decline of as much as 13%.
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