Faraday Future Takes Action in Response to Recent Suspected Illegal Market Manipulation by Hua Qixin and Continues to Collect Evidence

Rhea-AI Impact

(High)

Rhea-AI Sentiment

(Negative)

Key Terms

naked short selling financial

Naked short selling is selling shares you do not own and have not borrowed or reserved to deliver to the buyer, unlike ordinary short selling where the seller first borrows the shares. Think of it as promising to sell a car you haven’t secured from a lender or owner; if the seller can’t deliver, it can artificially increase the number of shares trading, push the price down, and raise risks for investors and for the company’s market stability.

market manipulation financial

Market manipulation is when individuals or groups deliberately distort the price or supply of a security by using deceptive or artificial tactics — for example spreading false information, placing fake orders, or coordinating trades to create a false appearance of demand. It matters to investors because it can make prices unreliable, hide real risk or value, and cause sudden losses when the manipulation stops, much like someone rigging an auction to make a bid look more valuable than it really is.

U.S. Securities and Exchange Commission (SEC) regulatory

The U.S. Securities and Exchange Commission (SEC) is the federal agency that writes and enforces rules for buying, selling and reporting information about stocks, bonds and other investments. Think of it as a referee and scoreboard operator: it protects investors by requiring companies to disclose accurate financial information and policing fraud, so investors can compare options and trust the markets are fair.

03/13/2026 - 12:56 AM

The Company has issued demand letters to multiple relevant platforms, requesting the preservation of evidence and cooperation with legal investigations. One of the biggest platforms has responded by proactively removing alleged false information.
The Company has engaged global law firm Paul Hastings LLP to evaluate its legal options.
The Company is reviewing evidence related to suspected illegal market manipulation.

LOS ANGELES--(BUSINESS WIRE)-- Faraday Future Intelligent Electric Inc. (Nasdaq FFAI) (“Faraday Future,” “FF,” or the “Company”), a California-based global Embodied AI (EAI) ecosystem company, today announced that it has taken action in response to recently identified suspected illegal market manipulation through the dissemination of false and misleading information intended to disrupt the market.

The Company recently became aware that a user going by the name of Hua Qixin and his organization was allegedly disseminating knowingly false statements, spreading knowingly misleading content, and engaging in related trading activity that may have interfered with market perception, damaged the Company’s reputation, and negatively affected the Company’s stock performance and the interests of its stockholders.

To protect stockholder interests, FF has taken the following actions:

First, the Company issued demand letters to relevant platforms, formally requesting the preservation of evidence and cooperation with legal investigations.

Second, the Company has engaged global law firm Paul Hastings LLP to evaluate its legal options, including potentially preparing a submission to the U.S. Securities and Exchange Commission (SEC) and potentially bringing legal actions in the United States and/or China.

The Company has collected and will continue to collect evidence and conduct further evidentiary work in preparation for the potential litigation.

Third, the Company’s investigation of relevant leads and evidence is ongoing. Anyone with information related to suspected illegal naked short selling, dissemination of knowingly false information, illegal market manipulation, or similar improper conduct is encouraged to submit such information to the Company’s investor relations email at ir@faradayfuture.com . The Company will review all credible leads in accordance with applicable law.

FF remains committed to its “Stockholders First” principle and will continue to take necessary legal and regulatory measures to protect the legitimate rights and interests of the Company and its stockholders.

ABOUT FARADAY FUTURE

Faraday Future is a California-based global intelligent Company founded in 2014 and is dedicated to reshaping the future of mobility through vehicle electrification, intelligent technologies, and AI innovation. Its flagship vehicle, the FF 91, began deliveries in 2023 and reflects the brand’s pursuit of ultra-luxury, cutting-edge technology, and high performance. FF’s second brand, FX, targets the high-volume mainstream vehicle market. Its first model, Super One, is positioned as a first-class EAI-MPV, with fast first deliveries planned to begin in 2026. FF recently announced its entry into the Embodied AI Robotics business, with sales and deliveries beginning in February 2026, marking a new chapter in its strategy to usher in a new era of EAI vehicles and EAI robotics. Learn more at: https://robotics.ff.com/us/

FORWARD LOOKING STATEMENTS

This press release includes “forward looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “plan to,” “can,” “will,” “should,” “future,” “potential,” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements, which include statements regarding potential future legal actions against alleged illegal market manipulation or similar improper activities, involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, which could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements.

Important factors, that may affect actual results or outcomes include, among others: expectations related to the investigation of potential illegal market manipulation, including the Company’s analysis, its ability to take appropriate corrective action, or any potential investigations by regulators. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of the Company’s Form 10-K filed with the SEC on March 31, 2025, and Form 10-Qs for the quarters ended June 30, 2025 and September 30, 2025 filed with the SEC on May 9, 2025, August 19, 2025 and November 21, 2025, respectively, and other documents filed by the Company from time to time with the SEC.