This electric car company is having trouble finding its spark. Faraday Future was on track to build a $1 billion factory in Nevada until they were unable to pay the bills.
Green Car Reports reported last month that Faraday Future was late on a $21 million deposit to lead contractor AECOM.
Now, Reuters says construction at the site has stopped due to the missed payments. State officials said the California-based company did miss several payment deadlines, while Faraday itself told Reuters it was going through an “adjustment period” with AECOM. Construction on the factory is expected to restart next year, and it is “refocusing” in advance of the Consumer Electronics Show.
The factory is intended to support Faraday Future’s production of an as-yet-unseen consumer vehicle.
The company’s fortune may hinge on its appearance at the large trade show this winter. The Financial Times spoke to an anonymous source that said if the company doesn’t show a production car at the Consumer Electronics Show in Las Vegas in January, it might spell the end for the company. That isn’t necessarily a set-in-stone ultimatum, but it’s certainly true that Faraday Future hasn’t produced what it promised in the past.
The State of Nevada put more than $200 million in incentives toward the factory.
Faraday Future is backed by LeEco, an umbrella company owned by Chinese billionaire Jia Yueting. He has faced criticism from Nevada State Treasurer Dan Schwartz, who said he doubted LeEco had the funds to support all the projects it wants to. Jia denied the statements, and said “we suspect defamation” from Schwartz.
Regardless of whether the work on the factory restarts or not, the electric car company’s next challenge will come at CES, where they’ll need to prove whether they can bring a car to the show floor.