Asia Tech Wire (May 31) -- YT Jia, the Chinese founder of U.S. electric car startup Faraday Future (NASDAQ:FFIE), has denied claims that the company will never be profitable.

This comes after many media outlets, citing Faraday Future's latest earnings results, reported that the company had said it might never achieve or sustain profitability.

Jia posted a video on Chinese social media platform Weibo on Friday to clear up misunderstandings and rumors about the risk alerts and disclosures in Faraday Future's 2023 earnings report.

Jia said it was completely untrue that he and Faraday Future had admitted that the company would never be profitable, "This is an out-of-context interpretation and even a fabrication of a sentence in the risk disclosure section of our financial report that says 'It may never achieve or sustain profitability'."

"In fact, most of these risk descriptions can be traced back to the company's registration documents filed with the U.S. SEC before it went public," he added. "Since then, these risk descriptions have been carried over into every single disclosure document, and these are the usual practices for risk alerts in annual reports."

Jia emphasized, "It's just that the company actively chose the most stringent compliance standards and made the most extreme descriptions of potential risks, and that's not a fact that has happened, much less an alleged admission of it."

He also expressed his conviction that Faraday Future could be one of the companies to achieve profitability sooner.