(Bloomberg) -- Faraday Future Intelligent Electric Inc. Chairman Brian Krolicki is stepping down after an internal investigation found the electric-vehicle startup may have misled investors about pre-orders.
Krolicki is being replaced by Susan Swenson, currently an independent director, Faraday Future said in a filing. Vice President Jarret Johnson, who is also general counsel and secretary, “will be separating from the company,” Faraday Future said.
Before the startup's merger last year with a special purpose acquisition company, its claims to have more than 14,000 reservations for its FF 91 model were “potentially misleading,” Faraday Future said. Only several hundred were paid, while the rest were “indications of interest.” The probe also found some investors had been misled about the involvement of founder and former Chief Executive Officer Jia Yueting in day-to-day management.
Faraday Future went public in July 2021 after merging with Property Solutions Acquisition Co., and has said it plans to put its FF 91 SUV into production this July. The Los Angeles, California-based company launched the probe in November after a short-seller firm raised concerns in a report.
Faraday Future's “corporate culture failed to sufficiently prioritize compliance,” it said in its statement.
CEO Carsten Breitfeld will now report directly to Swenson and is taking a 25% salary cut. Jia, who is now “chief product and user ecosystem officer,” is also taking a 25% reduction in pay. Jiawei Wang, vice president of global capital markets, will be suspended without pay.
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