Faraday Future vs. the Short-Seller Machine

EVWorld breaks down the short-seller report, Faraday's rebuttal, and what it means for investors and the EV sector

By EVWorld.com Si Editorial Team

It began with a headline: "Faraday Future Is a House of Cards." The source? Wolfpack Research, a short-seller firm known for publishing aggressive takedowns of publicly traded companies. The target this time: an EV startup still fighting to bring its flagship FF 91 to market.

Wolfpack’s report landed like a punch—accusing Faraday Future of fake preorders, rebadged Chinese vehicles, and a leadership team riddled with conflicts. The timing wasn’t subtle. The report dropped just days before a shareholder vote to authorize a massive increase in FF’s share count, and just as the company was seeking new funding.

Faraday Future fired back. In a formal statement posted to its Investor Relations site, the company called the report “malicious” and “intentionally misleading,” accusing Wolfpack of orchestrating a campaign to tank its stock and profit from the fallout. FF denied every major claim, from production delays to governance instability, and insisted its SEC filings had disclosed all material risks.

But this isn’t just a war of words. It’s a clash of financial strategies. Wolfpack disclosed its short position—meaning it stood to gain if FF’s stock dropped. Faraday, meanwhile, retained legal counsel and signaled it may pursue action against what it calls “illegal short selling.”

The stakes are high. FF’s stock did tumble, and the reputational damage could linger. For startups in the EV space, this kind of attack can derail momentum, scare off investors, and shift media narratives overnight. And for retail shareholders, it’s a reminder that the market isn’t just about engineering milestones—it’s also about perception, timing, and tactical pressure.

Faraday Future is still pushing forward. The FF 91 remains in development, and the company insists its governance reforms are real. But the shadow cast by Wolfpack’s report—and the broader machinery of short-seller activism—won’t fade easily.

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