This past summer, Nevada treasurer Dan Schwartz
questioned why the state was providing hundreds of millions of dollars in incentives for Faraday Future to build its factory near Las Vegas because of what he said were questions about the electric-vehicle maker's financial stability. He may have been on to something. New reports say that
the startup could be $46 million behind on construction payments by the end of this month.
According to a letter from construction giant AECOM obtained by Automotive News, as of two weeks ago, Faraday Future was behind on a $21-million deposit that was due in September, would owe another $25 million for this month, and almost $12 million for November. AECOM added that Faraday Future risked a work stoppage on the 900-acre site if it didn't get current with its bills.
In response to an Automotive News inquiry, both AECOM and Faraday Future said they were cooperating on the issue, and that a work stoppage wouldn't take place. AECOM will be providing about half the work on the $1 billion site, which will total about 3 million square feet and broke ground this past spring.
The state of Nevada, which is also home to Tesla Motors' Gigafactory near Reno, agreed last December provide about $215 million in incentives for Faraday Future to build its plant in North Las Vegas. The following month, the automaker showed off its 1,000-horsepower all-wheel-drive FFZERO1 concept electric vehicle at CES in Las Vegas. But this past summer, the financial stability of the company, which is backed by Chinese billionaire Jia Yueting, was called into question by Nevada treasurer Dan Schwartz because much of Yueting's wealth was tied to Leshi Internet Information & Technology. And the value of that company's stock has been plummeting. We have asked Faraday Future for a comment and will let you know when we hear back.
UPDATE: FF's product and tech communications specialist, Ezekiel Wheeler, told AutoblogGreen that, "The business relationship between Faraday Future and AECOM is strong and we remain committed to building our factory of the future in North Las Vegas."
Related Video:
According to a letter from construction giant AECOM obtained by Automotive News, as of two weeks ago, Faraday Future was behind on a $21-million deposit that was due in September, would owe another $25 million for this month, and almost $12 million for November. AECOM added that Faraday Future risked a work stoppage on the 900-acre site if it didn't get current with its bills.
In response to an Automotive News inquiry, both AECOM and Faraday Future said they were cooperating on the issue, and that a work stoppage wouldn't take place. AECOM will be providing about half the work on the $1 billion site, which will total about 3 million square feet and broke ground this past spring.
The state of Nevada, which is also home to Tesla Motors' Gigafactory near Reno, agreed last December provide about $215 million in incentives for Faraday Future to build its plant in North Las Vegas. The following month, the automaker showed off its 1,000-horsepower all-wheel-drive FFZERO1 concept electric vehicle at CES in Las Vegas. But this past summer, the financial stability of the company, which is backed by Chinese billionaire Jia Yueting, was called into question by Nevada treasurer Dan Schwartz because much of Yueting's wealth was tied to Leshi Internet Information & Technology. And the value of that company's stock has been plummeting. We have asked Faraday Future for a comment and will let you know when we hear back.
UPDATE: FF's product and tech communications specialist, Ezekiel Wheeler, told AutoblogGreen that, "The business relationship between Faraday Future and AECOM is strong and we remain committed to building our factory of the future in North Las Vegas."
Related Video:
Featured GalleryFaraday Future FFZERO1: CES 2016
