First, Faraday Future has seen a Chinese court freeze $182 million in assets tied to its chief investor due to missed payments, then Tesla Motors missed its projections for car production in the latest quarter, causing analysts to downgrade its stock.
Nevada’s governor and lawmakers placed a bet on Faraday Future to the tune of $215 million in tax abatements and credits to entice it to build an electric car factory at the Apex industrial complex in North Las Vegas. The bet also promised to spend $120 million on infrastructure improvements at the site — water, rail and widening of Interstate 15.
The governor and lawmakers doubled down on Tesla.
In a special session in 2014 the Nevada Legislature handed Tesla $1.3 billion in tax breaks and credits in return for the company promising to build a $5 billion, 10 million-square-foot battery factory near Sparks. Its capital expenditures so for amount to $1.1 billion, well short of the projected $3 billion.
Projections were for the battery gigafactory to be employing 1,700 workers by the end of 2016, but the latest progress report shows there are only 477, even though the state has shelled out $59 million in transferable tax credits.
Is there any way Tesla will employ 4,700 at the factory by the end of this year and 6,500 by the end of 2018?
Also, there are plans for 10 new battery gigafactories in the works.
Anyone care to bet on whether Nevada taxpayers will see a return on their investments?