Nevada treasurer raises questions about Faraday Future
Nevada's Schwartz says Faraday Future's factory plan has red flags.
The man holding the purse strings for the state of Nevada is saying the "Future" in Faraday Future is a little too cloudy for his liking. Nevada treasurer Dan Schwartz is questioning how the electric supercar maker will finance a $1 billion factory it's planning for North Las Vegas, according to Bloomberg News.
Such questions are relevant because the California-based company is
looking for some financial perks from the Silver State, which is no
stranger to high rollers.
Faraday Future is backed by China-based mogul Jia Yueting, whose
financial resources are primarily tied to Leshi Internet Information
& Technology. While that company has a $15 billion market value and
boosted first-quarter profit 20 percent up from a year earlier, its
stock trading was halted through the first five months of the year.
Since trading was resumed in early June, the stock is down 11 percent.
Yueting has invested about $300 million in Faraday Future and has
pledged $5 billion in Leshi shares as collateral, but the equity-backed
loans are of little comfort to Schwartz. That's because the state may
provide $120 million in infrastructure improvements as well as $215
million in tax credits for the factory, and if the company's financial
footing is unstable, Schwartz says Nevada taxpayers risk footing the
bill for part of a project that may never be completed.
(AutoBlog.com)
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