Faraday Future, the troubled electric vehicle startup, disclosed paying $7.5 million in 2025 to FF Global Partners LLC, a firm closely tied to its founder Jia Yueting.
These payments included monthly consulting fees, a bonus, loan repayments, and an unexplained $2.6 million chunk, as revealed in the company's recent annual proxy filing.
A History of Turmoil
Faraday Future went public via SPAC merger in 2021 amid high EV hype, but quickly faced production delays and financial woes.
Jia Yueting, previously blacklisted in China for fraud linked to his failed LeEco venture, was sidelined by the board in 2022 over misrepresented control during the merger.
Board members resigned amid threats from investor agitation by FF Global, paving Jia's return as co-CEO in 2025 and now sole CEO.
Governance Red Flags
The transactions spotlight ongoing related-party deals, with Faraday owing millions more to Jia-linked entities like a loan firm and his old LeEco affiliate.
The SEC probed these issues and sales claims for four years but dropped the case in March 2026, reflecting lighter enforcement under the second Trump administration.
For everyday investors, this underscores risks in SPAC-fueled EV startups where founder control can prioritize personal interests over shareholder value.
Pivoting for Survival
Delivering just four vehicles last year while losing nearly $400 million, Faraday Future now imports cheaper vans and robots from China to stay afloat.
Yet, heavy reliance on Jia's network mirrors LeEco's debt spiral, raising doubts about sustainable recovery.
Broader EV industry implications include eroded trust, as such scandals slow innovation and deter funding needed for mass-market adoption.
Watch for bankruptcy risks or further dilutions, signaling why laypeople should scrutinize governance before betting on flashy green tech promises.
Andrew Lee
