Nevada Insuring Itself Against Faraday Future's Murky Present

Mark Stevenson
by Mark Stevenson
nevada insuring itself against faraday future s murky present

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.

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  • Jpolicke Jpolicke on Apr 17, 2016

    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.

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    • Indi500fan Indi500fan on Apr 18, 2016

      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.

  • SCE to AUX SCE to AUX on Apr 17, 2016

    "...$75 million in collateral..." Some auditors should scrutinize the true valuation of what Faraday Future calls collateral.

    • Mopar4wd Mopar4wd on Apr 18, 2016

      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.

  • DeadWeight DeadWeight on Apr 18, 2016

    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.

  • Brett Woods Brett Woods on Apr 18, 2016

    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?

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    • PandaBear PandaBear on Apr 20, 2016

      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.