How Nevada Has Protected Itself From Possible Faraday Future Failure

1 year ago by Steven Loveday 15

Faraday Future Revealed Its FFZERO Concept Recently In Las Vegas

Faraday Future Revealed Its FFZERO Concept Recently In Las Vegas

Recently, Faraday Future broke ground at a new site in North Las Vegas. The company plans to build a 3 million square foot factory there within two years, that will ultimately produce 150,000 EVs a year.

Faraday Future's "future" site in North Las Vegas

Faraday Future’s “future” site in North Las Vegas

There has been much speculation as to the reality of Faraday’s plans, and many unanswered questions. But it’s interesting that Nevada is supporting the company, despite any loose ends.

The state is providing $3 million to Faraday to get started on the 900 acre desert space. The agreement calls for the company to then set aside $10 million to be given to Nevada for water, sewer, and rail extensions.

Brian Sandoval, Governor of Nevada, said:

“It’s a win-win. This site has been dormant for 20 years and that’s part of what the importance of this project is.”

The hope is that other factories will be compelled to build in the area. Faraday promises 4,500 new jobs, and if other companies move in due to the new construction, rail, and utility access, more jobs will come.

Nevada’s treasurer, Dan Schwartz has been public about his skepticism of Faraday and the company’s sketchy financial situation. He has finally agreed to a deal with the company and said:

“We’ve protected ourselves and the burden is now on them. That means I have to swallow my skepticism for now, but we’ll be monitoring the situation.”

The company will have to meet certain requirements in order to receive and continue to receive Nevada’s assistance. But first, it must put up $75 million in company collateral. Next, Faraday must develop 1.6 million of the 3 million square feet. EV sales must become a reality, and half of the 4,500 promised jobs must be filled.

Most of Faraday’s funding comes from Chinese billionaire, Jia Yeuting. Unfortunately, it seems the money is tied up in online media and trade and holdings have been frozen for some time. Time will tell what is to become of Faraday’s “future”.

Also of note: Faraday Future re-launched it’s website last week (now FF.com) and again stated its intention to have production cars on the road “within two years”.

Source: Autonews

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15 responses to "How Nevada Has Protected Itself From Possible Faraday Future Failure"

  1. Bob says:

    “Faraday Future…again stated its intention to have production cars on the road “within two years”.”

    Uh huh. And I have a bridge to sell you – in Nevada.

    1. SparkEV says:

      There are lots of bridges in Nevada. Which one, and how much?

      1. Bob says:

        The one that terminates in Fantasyland, which is apparently near “North Las Vegas”.

      2. ffbj says:

        The reference is to the Brooklyn Bridge, which swindlers would sell shares of to the gullible.

  2. SparkEV says:

    I have to wonder if Jia Yeuting is familiar with US. Unlike China where the wheel can get greased, it’s far more difficult in US. I mentioned to Chinese collegues that I need to get government permits to replace some windows at my house, and they didn’t believe me.

    When dealing with factory to pump out billions of dollars of anything, pressure will be not only from government but also from quasi government like the union (union is different in China than US). If he knew of the ridiculous number of asinine obstacles, I doubt he’d even start.

    1. electric95 says:

      I agree, but what other choices does he have? If he wants to sell a very expansive high-tech luxury product in China to well-off clientele, the product needs to be designed and made in (North) America or (Western) Europe.
      From all that transpired in China over the past 7 days or so, I would not be surprised if he succeeds in his endevour. It is not inconceivable that LeSEE and FF’s first model start shipping from Nevada before the end of 2018 – a small initial quantity and not quite fully baked, of course, but something they can call a release.

      This is a great read:

      http://www.reuters.com/article/us-autoshow-beijing-china-leeco-insight-idUSKCN0XL11X

    2. Nick says:

      Keeps corporations with nothing but a profit motive accountable to the people.

      Part of the social contract.

  3. David Murray says:

    How are they going to have production cars on the road in two years when they are just now breaking ground on the factory?

    1. Kdawg says:

      No problem once the Carbonaro Effect starts taking hold.

    2. Maybe the first ‘Production’ cars will be hand built, in China, and shipped in?

    3. electric95 says:

      I think it is doable. They said many times that the factory will be built in stages, and that $1B is the total investment over 10 years.

      If they throw a lot of money at it, I don’t see why they can’t have initial stages of each required facility within 12 months.
      And they will have to be very aggressive in their spending, including risk buys that likes of GM or BMW would never go for.

    4. Dragon says:

      Maybe they want a base near the gigafactory so they can sneak over and steal parts to make up a Frankencar release.

      1. electric95 says:

        That’s highly unlikely.
        But don’t be surprised if Model 3 gets built right alongside.
        To me, this is about Tesla and Faraday going against the cheaters from Germany. Tesla can’t do it alone. Ford won’t play, and GM is still suspect.
        FF is a US company. Our company. Sure, it is funded by an Asian for now, but wasn’t Tesla founded by an African? South African, that is? So what? They are American companies, on American soil, employing top American talent. Wish them luck.

  4. MikeG says:

    I wish Washington state dealt with Boeing like this.

  5. James says:

    The Bobcats are back! If the car making biz doesn’t pan out, they can make TV’s, cell phones and blenders for LeEco, and sell them as premium American-made products to the Chinese market.