Faraday Future vows to buy Nevada bonds to back factory infrastructure
Rail, water service would be secured by electric-vehicle maker Faraday Future's bonds, deposit.
The bond investment would be for as much as $75 million, and Faraday Future also agreed to deposit another $13 million. That money would go into an escrow account to back construction of rail and water facilities for the $1 billion plant. The company gets that deposit back once it builds at least 1.6 square feet on the site and starts selling cars. Faraday Future is backed by Chinese billionaire Jia Yueting.
Late last year, Nevada legislators approved tax credits and abatements worth $215 million so that the company could move forward on the factory at North Las Vegas's Apex Industrial Park. At the time, Faraday Future pledged to, among other things, invest $1 billion within the next 10 years. But the Nevada government also indicated last month that it wanted $75 million in collateral from the company before agreeing to releasing bonds that would be used to fund infrastructure, hence Faraday Future's bond and deposit agreement.
It continues to be a busy year for Faraday Future. In January, the company showed off its FFZERO1 electric vehicle at Las Vegas's Consumer Electronics Show. Faraday Future says that one-seat model, whose concept version wasn't driveable, will be able to go from 0 to 60 miles per hour in less than three seconds and will have an electric motor that delivers more than 1,000 horsepower. Additionally, the company just announced that it earned its first US patent with its "FF Echelon Inverter" power inverter.
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