Future of Faraday Future’s Nevada manufacturing plant looking bleak

Faraday Future pro type

Faraday Future pro type

“No company has had such an experience, a simultaneous time in ice and fire. We blindly sped ahead, and our cash demand ballooned. We got over-extended in our global strategy. At the same time, our capital and resources were in fact limited.”

— Jia Yueting, head of Faraday Future and other businesses, in memo obtained by Bloomberg News

Gullible Nevada lawmakers in a special session in 2015 on blind faith alone agreed to dole out $215 million in tax abatements and credits to entice Faraday Future to build an electric car factory at Apex in North Las Vegas, though at the time it did not even have a prototype vehicle. The prototype it has since unveiled appears to have only one seat.

The state also promised $120 million in infrastructure that includes water, rail and road improvements that may include widening I-15 and improving the freeway interchange near the Apex industrial park.

Bloomberg reports that Nevada Treasurer Dan Schwartz is still balking at issuing bonds needed to advance the project due to doubts about Jia’s ability to raise funds — doubts expressed by Jia himself — but Schwartz’s office wasn’t available for comment outside of normal business hours.

Bloomberg also said Jia’s memo “singled out the car division for its profligacy, saying it had already spent 10 billion yuan in early development.”

The LA Times reported two weeks ago that Faraday Future hasn’t been paying its bills and still owes on a $75 million performance bond to the state of Nevada.

The newspaper quoted Schwartz as saying, “My questions are all about how they finance this. … I’m afraid it will never be financed and implode in the middle.”

He noted, “The stock is worth [about] half of what he started with.”

 

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14 comments on “Future of Faraday Future’s Nevada manufacturing plant looking bleak

  1. John G Edwards says:

    Wow, what a stupid boondoggle. Hopefully, Faraday won’t be around long enough to get most of the tax breaks.

  2. Vernon Clayson says:

    Wow, this is a real major surprise, money and favors doled out again on/for whimsical politicians, they can’t really believe the public is ready for electric cars, can they? There’s an age old saying that to get a loan from a bank you have to prove you don’t need it, obviously that’s for ordinary people, not politicians flush with taxpayer money they can hand out to hustlers, seems the more extravagant the plan of the hustler the more fervent the support of the politicians. Gambling is the game here but let’s keep it in the casinos and other outlets, not in the halls of government. Nows the time with Harry Reid’s departure imminent, ’nuff said.

  3. Well, If the bonds aren’t in place, and they don’t build, are we out any cash.
    A deal that falls through with no actual money flow, except expenses for the session, isn’t as bad Harry’s land deals that just strip us of economic gain.
    On the Flip side, If they actually build and hire, we need to check out the SPD factor. Smiles Per Dollar.

  4. deleted says:

    Never trust anyone whose goal is to make money.

    They will lie, cheat and steal to you to get that every time.

  5. Dan Swartz traveled to China to check out Faraday. What he heard was not good and responsibly withheld issuing bonds. Without his great guidance we would have all been taken down the path of betting on the come one more time.

    I spent a couple of days at the Assembly during the passing of this bill and was disgusted at how easily supposed smart people fell for this. All who voted in favor of this owe the people of Nevada an apology. They were caught up in the moment and didn’t do any homework.

    Thank you Dan Swartz for protecting the people of Nevada.

  6. deleted says:

    Like I said, NEVER trust anyone whose goal is to make money from you.

    They will lie cheat and steal to accomplish that goal

    You want to know why the cost of healthcare keeps going up in this country? Here’s one reason; cause the private companies we trust to provide healthcare services, lie, cheat and steal from is.

    http://in.reuters.com/article/us-senate-mylan-idINKBN1332F4

  7. Rincon says:

    You might be getting a little extreme there, deleted. The government wants to make money from you. They are not to be trusted? Maybe you’re more conservative than I thought. My barber wants to make money from me. Perhaps I should watch him more closely?

    That being said, I certainly agree that some sort of assurance that you will be treated fairly is necessary whenever you engage in any large transaction. We have precious little of that assurance in our present and former health care systems. Ever ask how much a medical visit is likely to cost? I have several times. I was stonewalled each time. How can anyone here think a system that refuses to disclose its fees prior to the service performed is even remotely fair?

  8. Rincon says:

    Your link well illustrates the deficiencies in Conservative claims that private enterprise needs little or no regulation. I find it interesting that a $465 million dollar fine was judged to be “woefully deficient” by West Virginia’s Attorney General. Most individuals who are caught taking that kind of money under false pretenses, would go to jail. Not only didn’t any individual get punished in this case, the fine pretty obviously seems to be merely a cost of doing business. No reason not to repeat similar behaviors in the future. The Supreme Court was wrong. Corporations aren’t people, they’re superior beings and in the eyes of Conservatives, deserve special treatment.

  9. deleted says:

    Rincon:

    I don’t trust governments much either, but it disagree that they are out to “make” money.

  10. Steve, what was that plan for Trump to throw the race so Hillary could be President???

  11. Steve says:

    I watched his speech last night, Brien.
    He was a surprised as everyone else.
    I bet Bill Clinton is lamenting that phone call more than anyone else on the left.

    Being as I did not support either, I was able to sit back and watch. I am happier with him than her because, as it turns out, she was the bully while he is an asshole. But assholes only tell it like it is. Truth may hurt but it is only truth.
    And the truth is, Bill Clinton encouraged Trump to run. I never said it was a conspiracy, though it could read that way, I said the Clinton’s tried to “pick” their opponent and it bit them hard.
    Good.
    This is the US voting for change and, if you think about my statements you will see, I was calling for change just as hard as you have.

  12. Barbara says:

    No doubt the Clintons wanted Trump as the nominee believing he would be the weakest candidate. They were correct. This is less a Trump victory than a repudiation of the Obama / Clinton legacy. This was a revolt against promises not kept and the elite in DC. I believe a considerable amount were not voting for Trump, but were casting votes against Hillary.

    The Republicans now control the Senate and the House as well as the Presidency. If the GOP wants to remain a party, they will need to deliver on all the promises they have made to repeal the ACA, appoint conservative Supreme Court judges, reform the tax code, reform entitlements, abolish several departments (Education, Energy, EPA, etc.)

    I hope Trump appoints a Special Prosecutor to investigate the pay for play of the Clinton Foundation and the numerous violations of the Espionage Act. If he does not, he is not going to be the “outsider” he pretended to be.

  13. Steve says:

    Hairy Weed’s “Nuclear Option” is coming back to bite his Democrats!

    (Brien, that is the kind of snark you took from my statements about Bill and the phone call with Trump….To clarify this, the Senate will be approving Trump nominees with a simple majority vote, all thanks to Harry Reid)

  14. […] Nevada ponied up $215 million in tax breaks and improvement projects. (Well, actually that was $215 million in tax abatements and credits, plus another  $120 million in infrastructure that includes water, rail and road improvements that […]

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