Following on earlier news that Faraday Future is $21 million behind on payments to the construction firm that is building its $1 billion facility in North Las Vegas, AECOM, it appears that work has stopped at the site — despite earlier claims from Faraday Future that it was unlikely that work would stop as a result.
This news also follows on reports of financial problems at the company of the primary backer, the Chinese billionaire Jia Yueting. These financial problems were disclosed in a widely circulated memo from Yueting in which he noted that recent expansion had probably been too rapid.
The news originates with an “anonymous tip from someone outside of Faraday Future but close to the actual construction work,” as reported by Jalopnik.
Following this tip, AECOM provided the following statement to the news outlet:
“Faraday Future commenced work on its $1-billion state-of-the-art manufacturing facility in North Las Vegas earlier this year. To date, we have completed grading and foundation prep work.
“At this time, Faraday Future is temporarily adjusting their construction schedule with plans to resume in early 2017. We remain fully committed to our client and our employees working on this project, and we look forward to the facility’s successful delivery.”
Following the publishing of the original story, a spokesperson for Faraday Future reportedly confirmed that work has stopped at the construction site and that negotiations are ongoing, with the 2017 schedule now being reevaluated.
Hard to know exactly what to make of this — certainly not a good sign though.
As a reminder, Faraday Future has, to date, received $335 million in tax credits from Nevada.