By on April 17, 2016

Faraday Future (FF) FFZERO1

Nevada, home to Tesla’s “Gigafactory,” is taking a different tack with its other soon-to-maybe-be electric vehicle producer, Faraday Future. To make sure its $215 million package of tax incentives and abatements actually creates a factory that will employ Nevadans, the state has levied a number of conditions on Faraday, which includes putting up millions of dollars to develop the future 18,000-acre Apex Industrial Park site the company will call home.

According to Automotive News, Nevada requires that Faraday Future put up $3 million to cover the initial costs of engineering and surveying the site, and an extra $10 million to extend services — such as water, sewer and rail — to Apex. The state expects Faraday to deliver those funds in early May.

Other conditions include hiring 4,500 employees, of which half must be Nevadans. Faraday is also required to put up $75 million in collateral before Nevada issues bond that will fund development of the site, and that money will only be returned once Faraday has built more than half of its factory and begun selling cars.

Faraday will occupy 900 acres of the 18,000 acre site total and act as the park’s anchor tenant.

To date, Faraday has shown only a silhouette of its production vehicle and a non-operational concept vehicle.

Get the latest TTAC e-Newsletter!

14 Comments on “Nevada Insuring Itself Against Faraday Future’s Murky Present...”

  • avatar

    Can these IDIOTS at Faraday build a spacious car and crossover/SUV instead of ugly ass concept cars?

    Have we learned nothing from Fisker.

    • 0 avatar

      There’s no money in building stuff anymore, now that there are only thee guys left with any money to spend.

      The money is in coming up with childish concepts, which will presumably excite the three guys who split the money Yellen took from everyone else. Enough so that those three wants to “invest” in them.

    • 0 avatar

      What did we learn from Fisker?

      That you can design one of the most gorgeous 4 doors ever and if you don’t have a bunch of money to continually burn, you’ll not iron out the bugs? That unless you have a carnival barker that can get billions in the fire hose, you don’t stand a chance?

      That eventually the Chinese will come and steal it anyway? (Or buy it for a price that may as well be theft?…)

  • avatar

    Good for Nevada for demanding some real investment before turning on the money, but can they legally discriminate against nonresidents? If they are using a dimes worth of federal aid I would expect this to raise constitutional issues. Anyway, they will be residents after they get hired unless the plant gets built right on the border.

    • 0 avatar
      SCE to AUX

      Tesla’s Gigafactory also requires a high fraction (50%+, I think) to be Nevada residents. This became an issue when one of the contractors working on the Gigafactory was found to have less than the 50% threshold working on the job site, and there was a brief walkout. Tesla saw to it that this was corrected.

    • 0 avatar

      Probably take an hour or so to rent a PO Box and open a checking account in Nevada and become a resident. The actual residents will just get screwed with higher taxes.

    • 0 avatar

      Honda Greensburg here in Indiana actually specified which counties you had to live in otherwise no interview. Basically because they didn’t want folks commuting mega distances and not showing up in the winter or so it was stated. And conveniently the list screened out a lot of former UAW types.

  • avatar
    SCE to AUX

    “…$75 million in collateral…”

    Some auditors should scrutinize the true valuation of what Faraday Future calls collateral.

    • 0 avatar

      Not sure how this plays out my gut feeling is the same that it’s vapor ware. But if the rumors on their financial backing in China are true they may be around for a while, there appears to be lots of Billions in backing somewhat shown by their initial hiring spree.

  • avatar

    Faraday is Vaporware.

    Take it directly to the bank.

    It’s a top-to-bottom promotional scam, and this facility/complex will never see the light of day.

    “To date, Faraday has shown only a silhouette of its production vehicle and a non-operational concept vehicle.”

    The fact that Nevada regulators and legislators have even spent as much time on a company that has never built anything other than a silhouette of its production vehicle & a non-operational concept vehicle is grounds for firings and recalls of those legislators for wasting Nevadans’ taxpayer money even seriously engaging with Vaporware Faraday in terms of time, planning and other resources.

  • avatar
    Brett Woods

    Who are these shady characters? Is this a play to directly ride the coat tails of TESLA? If or when this pie wrangling business fails, could it take down good local businesses with it?

    • 0 avatar

      The rumor is its being backed by several China tech companies. Including a couple with billions in cash reserves. Of course the pessimist could look at this as way to move some of that money over here rather then building something.

    • 0 avatar

      Backed by a billionaire in China that runs the equivalent of Netflix in the US.

      I suspect it is actually owned by the Chinese government for their automotive investment / R&D need. They will likely just buy a known design from Tesla and just build the body around it, and Tesla will make money from the IP of each car sold.

Read all comments

Back to TopLeave a Reply

You must be logged in to post a comment.

Recent Comments

  • 96redse5sp: You know we’re in the middle of a pandemic right? Are you fully vaccinated? Do you regularly wear your...
  • 285exp: The good thing is you’ll get to spend a lot more time on the road and at recharging stations. A few years ago...
  • lne937s: People in the “I don’t trust experts, I do my own research” camp should google...
  • FreedMike: …so, basically, the only stats that make sense are the ones you post, despite the fact that you just...
  • schmitt trigger: I agree with SCE to AUX: the vaccination card is something one should not lose. I have my original...

New Car Research

Get a Free Dealer Quote

Who We Are

  • Adam Tonge
  • Bozi Tatarevic
  • Corey Lewis
  • Mark Baruth
  • Ronnie Schreiber