Faraday Issues $75 Million Bond To Assure Nevada That EV Factory Is Coming

2 years ago by Mark Kane 14

Faraday Future Factory Rendering In Nevada Looking Good

Faraday Future Factory Rendering In Nevada

Faraday Future's Bobcats in it’s native environment roaming freely. (Hat Tip To Ken_3!)

Faraday Future’s Bobcats

Faraday Future intends to soon become an electric car maker with an announced $1 billion investment into North Las Vegas’ APEX industrial park, Nevada.

Initially, a high tax incentive package of $335 million attracted a lot of attention, and despite the fact Faraday Future’s Bobcats were released for early stage work, some doubts arose as to whether FF is capable of financing the factory.

According to the latest news from Nevada, Faraday Future now will prove financing – by acquiring a surety bond up to $75 million and deposit another $13 million into escrow accounts:

“In a letter sent Wednesday to Steve Hill, director of the Governor’s Office of Economic Development, executives with the electric car maker said it will acquire a surety bond of up to $75 million and deposit another $13 million into escrow accounts to go toward engineering and preliminary construction of water, wastewater and rail facilities.”

Faraday Future Wheels rolls forward (InsideEVs/Tom Moloughney)

Faraday Future Wheels rolls forward (InsideEVs/Tom Moloughney)

The bonds are part of requirements to get tax incentives.

“FF will acquire a surety bond, or other financial instrument acceptable to GOED and Nevada, of approximately $75 million,” the company said in an acknowledgment signed by Dag Reckhorn and Dave Wisnieski. Reckhorn is Faraday vice president of global manufacturing; Wisnieski is director of finance.

The security will be released back to Faraday after it has built at least 1.6 million square-feet on the site and has generated revenue from selling cars.

Additionally, Faraday said it will deposit about $3 million in an escrow account by mid-March and another $10 million by mid-May to finance its share of bringing utilities to its site, as well as engineering and preliminary construction of proposed water, wastewater and rail facilities to the Apex complex.”

What Faraday Future will actually be making in Las Vegas, would now seem to once again be the question of the day, as so far only a “not headed to production” FFZERO1 concept has been revealed.  For its part, Faraday says a road-worthy production car will arrive in about two years.

DagFFtoSH by LVReviewJournal


FFBESLetter by LVReviewJournal

source: Las Vegas Review-Journal

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14 responses to "Faraday Issues $75 Million Bond To Assure Nevada That EV Factory Is Coming"

  1. evcarnut says:

    Far a day, the name says it all! faraway, Noway? Hope I’m wrong.. I wish them all the good luck they need to get this led balloon off the ground ..BTW..If by some fluke it should fly, a name change would be in urgent order.

  2. Daniel says:

    Still it would seem that from the first shovel in the ground to a complete manufacturing facility and a running production car in 2 years seems like a really tall order.

  3. Pushmi-Pullyu says:

    It still looks like all hat and no cattle to me.

    @Daniel: Yeah, their unrealistic development schedule, coupled with producing a non-functional “Batmobile”, a faux prototype which even they admit isn’t headed for production, does not inspire confidence in this company.

    1. Three Electrics says:

      Very few concept cars make it to production. That’s why they are called “concepts” and not “production prototypes.” What caused your confusion over FF’s CES presentation?

      1. AlphaEdge says:

        Simply because it suits his purpose. He’s written them off, so he constantly going to harp about that concept car, or the concept drawing of their factory, and so on.

        1. Ahldor says:

          With the reveal of the batmobil FF have been retarded in marketing their own brand. For months they have been communicating “rethink the future of travel”. Ok so far. And then they reveal a ONE seater that barely fits a regular parking space. How is that in line with reimagine the future of travel?

          The fact that they didnt show a production model doesnt matter. It is the fact that they showcased a concept that was plain stupid. The concept car wasnt in any way in line with reimagine the future of travel. With this concept car FF showed us a more stupid future. That is what annoys us.

          If they only showed a spacey four/five seater or something else that actually was in line with what they have been communicating for months prior to the reveal, they would have been fine imo.

        2. sven says:

          Pushmi-Pullyu is a Faraday Future FUDster. ;D

  4. Anon says:

    So, the reports of suppliers owed money, and not getting their calls returned are untrue, or what?

    1. Jay Cole says:

      It would seem a new cash infusion from China/Jia has arrived – one of two likely scenarios suggested at the time when Nevada was looking for assurance and suppliers payment money – either Faraday was waiting on new money to arrive, and/or it had no money at all…thankfully it appears it was reason number 1.

      So, double bonus. We have this news for guaranteed money to cover/insure Nevada taxpayers, and suppliers that were previously owed money also seem to have all been paid this week too (at least the one whom contacted us who was having some issues reported as such).

      While FF is an odd, secretive duck with an unknown product plan, I think it can only be positive that things seem to be on track/moving forward…as opposed to the opposite being true, (=

      1. Anon says:

        Unpredictable correspondence or pay periods don’t win over suppliers.

        We’ll see how far they get….

        1. Three Electrics says:

          Neither does suing your suppliers over falcon wing door fiascos, of course.

  5. evcarnut says:

    These Guys are blowing smoke up our butts…

  6. Chris B says:

    I do wonder what these guys are thinking. I mean Tesla is already here, entrants like Google and Apple are trying real hard, and the major automakers (particularly GM) are now well-versed in what it takes to build an electric car AND obviously are investing heavily in autonomous driving… I sure wouldn’t want to be a new company breaking into this space right now!