So much for the deal to build a $1 billion factory
It’s been just over two years since we first heard about Faraday Future. At the time, the electric car startup was pretty much operating in secret but had already poached several big names in the car industry. Less than six months later, FF announced plans to invest $1 billion in a Nevada factory. But financial issues quickly arose, and earlier this summer, FF stopped work on the Nevada plant. This week, FF finally threw in the towel.
The Nevada Independent reports that Faraday Future’s Nevada plant is officially dead. The startup sent a letter to the Governor’s Office of Economic Development giving up its status as a “qualified project.” That required FF to write the state a check for $16,200, as well as forfeit about $620,000 in tax incentives that had been held in a trust.
“The Faraday project is basically dissolved at this point at absolutely no cost to the state and local governments,” said Steve Hill, executive director of Nevada’s GOED.
But that doesn’t necessarily mean FF is done for good. It’s been working to raise more money since May, and last month, it leased a smaller factory in California to hopefully begin production on its all-electric FF91 next year. Whether that will still happen, though, remains to be seen.
As it turns out, starting a car company from scratch is hard. And very expensive.
Source: The Nevada Independent