Despite its bold claims, start-up electric automaker Faraday Future will have to prove it has enough cash to build a $1 billion factory before subsidies are given by the Nevada government.
According to Automotive News, there is some uncertainty about the finances of Chinese billionaire Jia Yueting, who is the main investor in Faraday.
Chinese trading of Yueting's online video company, Leshi Internet Infomation & Technology Corp, was frozen in early December due to an internal reorganization. Trading was originally set to resume on January 31 but that date has since been pushed back to March 7.
On the back of these discoveries, Nevada state treasurer Dan Schwartz has been left with some scepticism about Yueting's ability to find Faraday's electric car factory. As a result, the state is now requesting that Faraday put up as much as $75 million in collateral before the state issues its promised bonds to the start-up.
“My responsibility is to the Nevada taxpayer. I'm personally and the office is very much in favor of economic development, but what we don't want to happen is to issue bonds that won't be paid,” Schwartz said.