autoevolution

The State of Nevada Played Roulette with the Taxpayers' Money

How costly was your biggest mistake? Did you break a window in school when you were ten? Did you crash your car and had to spend several thousand dollars to repair it? Whatever it was, it probably didn't end with you having to take $335 million out of your pocket.
Faraday Future plant 1 photo
Yes, that would have to be a very large pocket indeed, but that's not the main issue here. The problem is that the State officials were all too happy to offer EV startup Faraday Future tax credits amounting to $335 million, without even bothering to check the company's financial status.

Dan Schwartz, the Nevada State Treasurer, told Jalopnik that “the financials of the company were marked confidential and not shared. We [the Treasury] asked for a financing plan, but have never seen it, and that was a year ago.” Well, if things go South for Faraday Future, this could end up being another one of those examples of how nonchalantly the officials make decisions concerning taxpayers' money.

As you probably know, Faraday Future is one of the several companies backed by Chinese magnate Jia Yueting that are planning to release an electric vehicle over the coming years. Faraday has currently reached the phase where it releases teaser videos and images and tries to build up hype over the official launch of its first vehicle.

The unveil is scheduled right after the last alcohol vapors from the New Year's Eve party have passed, on January 3, 2017. Most details about the company's electric crossover have remained a secret, but the real worry is that not even the car's makers have the answer to all these questions.

Early last month, Jia Yueting confirmed his company was struggling with a cash shortage, but he didn't reveal how this would affect the rest of the initiatives he was involved with. However, even before this, work on Faraday Future's $1 billion factory in Nevada had ceased after the startup failed to make the required payments toward the contractor.

Faraday Future's situation isn't looking great at the moment, and the only thing that could give it a breath of fresh air is a successful launch of its model. Even then it would face an uphill battle to convince investors and gather capital, but at least the first step in the right direction would have been made.

 
 
 
 
 

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