Startup check-in: Faraday Future is not building the factories it said it would
In early 2016, electric vehicle company Faraday Future celebrated a deal with the state of Nevada—in exchange for building a $1 billion factory that would eventually employ up to 4,500 people, the company would get $335 million in tax cuts from the state.
Later that year, Faraday Future negotiated another deal on a former Navy shipyard in Vallejo, California. There, the electric vehicle company would build a second factory and a “customer experience center.”
Now, neither of those two projects is happening as planned. In March, Faraday Future said it would not move forward with the Vallejo site and told investors that it would be cutting its billion-dollar Nevada site down considerably, from a three-million-square-foot facility to a 650,000-square-foot facility. Earlier this month, the Le Eco-backed startup said it wouldn’t be building on the Nevada site at all, opting to put a base at a smaller site in either California or Nevada. It will, however, hold the property it bought at the site for “long-term vehicle manufacturing,” according to the Nevada Independent.
Source: Ars Technica