Internal whistleblowers at Faraday Future allege that the troubled electric vehicle (EV) company has been dishonest about some of its reported sales and that founder Jia Yueting has utilized the company’s HR department to retaliate against dissenting voices. The claims come from Jose Guerrero and Victoria Xie, who have filed lawsuits against Faraday Future, Jia Yueting, and the head of HR, Nan Yang, in Los Angeles Superior Court, alleging wrongful termination, breach of contract, and infliction of emotional distress.
These lawsuits shed light on the ongoing tensions within Faraday Future, particularly regarding Jia’s alleged continued influence over the company despite being sidelined in 2022 following an internal investigation.
The lawsuits also coincide with Faraday Future’s ongoing financial struggles, which have led to layoffs and furloughs, nearly resulting in eviction from its Los Angeles headquarters due to missed lease payments. Additionally, the company faces investigations by the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ).
Faraday Future has responded to the allegations, expressing its intent to defend against them vigorously. Jia Yueting, likewise, plans to file counter-lawsuits against the parties involved, citing false statements and defamatory allegations.
Guerrero and Xie allege that Faraday Future misrepresented the sales of its electric SUV, the FF91, announcing deliveries before the sales process was completed. They claim that three out of four reported sales were not fully paid for at the time of announcement, and one was paid for significantly later. The whistleblowers further assert that the company pressured sales staff to announce premature sales to boost share prices and subjected those who raised compliance concerns to HR retaliation.
Furthermore, the lawsuits allege that Faraday Future executed sales agreements without proper vehicle inspections, submitted DMV paperwork without required insurance and payments, and sent non-road approved software to customer cars without adequate documentation to regulatory bodies, potentially violating transportation laws.
Both Guerrero and Xie claim they were terminated in retaliation for their whistleblowing activities. They assert that Jia and Yang were directly involved in their dismissals. Despite attempting arbitration, the lawsuits claim that Faraday Future failed to pay required fees, allowing them to file lawsuits in Superior Court.
The lawsuits also highlight Jia’s alleged continued influence within Faraday Future, suggesting that he leads a “shadow organization” controlling key operational decisions, including human resources, budget allocations, and vehicle releases.
These legal actions underscore the ongoing challenges faced by Faraday Future, both in terms of its financial viability and corporate governance.
