Spokesman confirms Faraday Future has suspended Apex construction

A spokesman for Faraday Future confirmed that construction of the electric carmaker’s production facility at North Las Vegas’ Apex Industrial Park is on hold until a yet-to-be-determined date in early 2017.

“We are acknowledging that there has been a temporary work stop at the site,” said Rich Otto, Faraday communications specialist. “We are re-evaluating where we’re at, while we refocus our resources toward bringing this car to life.”

Otto was referring to the electric car that will be a model for the production vehicles made at the site and will become the company’s signature product, which it intends to unveil in January at the Consumer Electronics Show.

Otto said the company — headquartered in Gardena, California, with offices in Silicon Valley and China — is refocusing financial resources away from completing its Nevada production facility temporarily and toward completion of a prototype.

“We plan to ramp construction back up starting in the new year after CES,” Otto said. “That’s something we’re driving toward.”

Faraday broke ground in April on construction on 900 acres in Apex to be home to its 3 million-square-foot factory. Otto said grading of land and other important steps for preparing to lay a foundation were complete.

Construction stopped last week when AECOM, the general contractor overseeing more than $500 million in construction on the $1 billion project, stopped work after Faraday missed multiple deadlines for depositing money into an escrow account to pay builders.

Gov. Brian Sandoval, who helped rally support for $320 million in incentives during a special legislative session in December, suggested that $70 million earmarked for infrastructure improvements scheduled to begin in June may have to wait to see how Faraday is advancing with its plans to resume construction early next year.

Unlike Tesla, the electric carmaker that got even bigger tax abatements and incentives to bring its production facility to Nevada, Faraday Future is not a public company. It’s a private enterprise funded primarily by controversial Chinese billionaire Jia Yueting.

Public concern over the Nevada project arose when the lack of escrow deposits coincided with a letter from Jia apologizing to investors in LeEco ventures, the Chinese company of which he is chairman and CEO, that he had overextended company finances.

Otto stressed that Faraday is not part of the Chinese company, but acknowledged the letter had something to do with Faraday’s current refocusing.

“Part of the re-evaluation and refocusing of our efforts on producing the car were a result of the restructuring and re-evaluation of finances from Jia, yes,” he said. “Faraday Future and LeEco operate as strategic partners, but the finances of the two companies are completely separate.”

Otto responded to criticism from Nevada Treasurer Dan Schwartz, who likened the project to a Ponzi scheme that didn’t receive proper vetting before the governor’s office pushed through incentives.

“It’s unfortunate that the treasurer sees FF the way he does,” Otto said. “But we are taking this feedback very seriously, and refocusing our company on producing the car as a tangible asset. We hope our actions to launch the vehicle will reflect the seriousness and validity of FF.”

Otto said the company is communicating daily with AECOM to restructure its commitments, and is in regular correspondence with the governor’s office.

“We obviously have milestones that we need to maintain with … Nevada to continue the project to keep them informed of where we are financially,” Otto said. “We are working very hard to maintain those relationships and assure them of the company’s viability is front and center.”

In addition to about 3,000 construction jobs, upon completion the Faraday factory stands to employ 4,500 full-time workers and support 9,000 related full-time jobs. The governor’s office projected it would have an economic impact of $85 billion over 20 years.

“The Nevada plant is integral to our future,” Otto said “That is where we plan to manufacture our vehicles and future products. That is very much part of our plan moving forward.”

To reassure Nevadans about Faraday’s commitment to the state, Otto said of the halt to construction, “We’re seeing this as a refocusing opportunity that is obviously very critical to the future success of the company. But we’re confident we’ll be able to pursue a future in Nevada by getting this vehicle out there.”

ad-high_impact_4
Business
Lehman Brothers bet big on Las Vegas
Lehman Brothers collapsed 10 years ago, helping send the country into the Great Recession.
Fremont9 opens downtown
Fremont9 apartment complex has opened in downtown Las Vegas. (Marcus Villagran/Las Vegas Review-Journal) @marcusvillagran
Ross & Snow launches in Las Vegas
Luxury shoe brand Ross & Snow has opened in Las Vegas, featuring "functional luxury" with premium shearling footwear. (Bailey Schulz/Las Vegas Review-Journal)
Remote Identification and Drones
DJI vice president of policy and public affairs discusses using remote identification on drones. (Bailey Schulz/Las Vegas Review-Journal)
Drones and public safety in Nevada
Two representatives in the drone industry discuss UAV's impact on public safety. (Bailey Schulz/Las Vegas Review-Journal)
Frontier Airlines to launch flights from Las Vegas to Mexico
Frontier, a Denver-based ultra-low-cost carrier, will become the first airline in more than a decade to offer international service to Canada and Mexico from Las Vegas when flights to Cancun and Los Cabos begin Dec. 15. (Rick Velotta/Las Vegas Review-Journal)
MGM Resorts International CEO Jim Murren addresses Oct. 1 lawsuits
MGM Resorts International Chairman and CEO Jim Murren addresses criticism his company has received for filing a lawsuit against the survivors of the Oct. 1 shooting. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International opens the doors on MGM Springfield
Massachusetts’ first hotel-casino opens in downtown Springfield. The $960 million MGM Springfield has 252 rooms and 125,000-square-feet of casino. (K.M. Cannon/Las Vegas Review-Journal)
MGM Resorts International prepares to open MGM Springfield
Las Vegas-based MGM Resorts International gave news media and invited guests a preview of the $960 million MGM Springfield casino in Massachusetts. The commonwealth's first resort casino will open Friday, Aug. 24. (K.M. Cannon/Las Vegas Review-Journal)
A Walk Through Circus Circus
It only takes a short walk through Circus Circus to realize it attracts a demographic like no other casino on the Strip: families with young children. (Todd Prince/Las Vegas Review-Journal)
Morphy Auctions, a vintage slot machines seller, wants gaming license
Vice president Don Grimmer talks about Morphy Auctions at the company's warehouse located at 4520 Arville Street in Las Vegas on Thursday, Aug. 16, 2018. (Rick Velotta/Las Vegas Review-Journal)
Nevada's venture capital money doesn't stay in state
Zach Miles, associate vice president for economic development for UNLV, said there’s venture money in Southern Nevada, “but trying to find the right groups to tap into for that money is different.” According to a 2017 report from the Kauffman Foundation, Las Vegas ranked number 34 out of 40 metropolitan areas for growth entrepreneurship, a metric of how much startups grow. With a lack of growing startups in Las Vegas, investment money is being sent outside of state borders. The southwest region of the U.S. received $386 million in funding in the second quarter, with about $25.2 million in Nevada. The San Francisco area alone received about $5.6 billion. (source: CB Insights)
Neon wraps can light up the night for advertising
Vinyl wrap company 5150 Wraps talks about neon wraps, a new technology that the company believes can boost advertising at night. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Nevada on the forefront of drone safety
Dr. Chris Walach, senior director of Nevada Institute for Autonomous Systems, talks to a reporter at NIAS's new Nevada Drone Center for Excellence of Public Safety, located inside the Switch Innevation Center in Las Vegas. K.M. Cannon Las Vegas Review-Journal @KMCannonPhoto
Motel 8 on south Strip will become site of hotel-casino
Israeli hoteliers Asher Gabay and Benny Zerah bought Motel 8 on the south Strip for $7.4 million, records show. They plan to bulldoze the property and build a hotel-casino. Motel 8 was built in the 1960s and used to be one of several roadside inns on what's now the south Strip. But it looks out of place today, dwarfed by the towering Mandalay Bay right across the street.
Project billed as one of the world's largest marijuana dispensaries plans to open Nov. 1
Planet 13 co-CEO Larry Scheffler talks about what to expect from the new marijuana dispensary, Thursday, July 19, 2018. (Marcus Villagran/Las Vegas Review-Journal) @brokejournalist
Oasis Biotech opens in Las Vegas
Brock Leach, chief operating officer of Oasis Biotech, discusses the new plant factory at its grand opening on July 18. (Bailey Schulz/Las Vegas Review-Journal)
UNLV Tech Park innovation building breaks ground
Construction on the first innovation building at the UNLV Tech Park is underway. (Bailey Schulz/Las Vegas Review-Journal)
Caesars Forum Meeting Center
Caesars broke ground Monday on its $375 million Caesars Forum Meeting Center (convention center) just east of the High Roller observation wheel. (Caesars Entertainment)
Technology reshapes the pawn shop industry
Devin Battersby attaches a black-colored device to the back of her iPhone and snaps several of the inside and outside of a Louis Vuitton wallet. The device, installed with artificial intelligence capabilities, analyzes the images using a patented microscopic technology. Within a few minutes, Battersby receives an answer on her app. The designer item is authentic.
Recreational marijuana has been legal in Nevada for one year
Exhale Nevada CEO Pete Findley talks about the one year anniversary of the legalization of recreational marijuana in Nevada. (K.M. Cannon/Las Vegas Review-Journal)
Young adults aren't saving for retirement
Financial advisors talk about saving trends among young adults. (Bailey Schulz/Las Vegas Review-Journal)
President Trump’s tariffs could raise costs for real estate developers, analysts say
President Donald Trump made his fortune in real estate, but by slapping tariffs on imports from close allies, developers in Las Vegas and other cities could get hit hard.
Las Vegas business and tariffs
Barry Yost, co-owner of Precision Tube Laser, LLC, places a metal pipe into the TruLaser Tube 5000 laser cutting machine on Wednesday, June 20, 2018, in Las Vegas. Bizuayehu Tesfaye/Las Vegas Review-Journal @bizutesfaye
Nevada Film Office Connects Businesses To Producers
The director of the Nevada Film Office discusses its revamped locations database and how it will affect local businesses. (Bailey Schulz/Las Vegas Review-Journal)
TOP NEWS
News Headlines
Add Event
Home Front Page Footer Listing
Circular
You May Like

You May Like