Faraday Future faces bleak future

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Financially troubled electric carmaker Faraday Future has undergone recent troubles in the past few weeks, and recently, the Nevada Independent reported that they pulled out of the tax deal and surrendered its land altogether.

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“The Faraday project is basically dissolved at this point at absolutely no cost to the state and local governments,” Executive Director for Nevada Governor’s Office of Economic Development Steve Hill told the Nevada Independent in an interview.

The Nevada Independent report added that Faraday sent a letter to the Governor’s Office of Economic Deployment stated that they gave up the company’s status on its “qualified project,” thus no longer qualified for tax and land incentives from Nevada. To do this, the company sent the state a check of $16,200 plus $620,000 in tax incentives held in a trust. The tax incentives will be disbursed in various Nevada agencies that are slotted to collect the respective funds.

Adding the problem is that Faraday would need to invest $1 million for the Nevada factory to get the bulk of the tax incentive, but it did not happen. The local newspaper added that four companies has expressed interest on the site where Faraday used to work on.

Faraday’s Future
The company has also leased a space that used to be a Pirelli factory in Hanford, California, last month, and has received funds to keep the company afloat. Around 1,800 employees will move to the new site for their FF 91 electric SUV to be put into production.

Faraday claimed that it will take up one million square feet, almost the same size as the dissolved Nevada factory. It expects to occupy 1,800 employees by 2018 after it completes permitting.

The company has its own Formula E team and has competed in the Pikes Peak Hill Climb. Its own project vehicle, the FF 91, can go from 0-60 mph (96 kph) in a claimed 2.39 seconds. Whether it will make it to production will be met with uncertainty amid financial problems.

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