SHOW ME THE MONEY!
Drive out to the Apex Industrial Park in North Las Vegas and you’ll find smooth piles of sand where a factory churning out electric cars was supposed to be operating.
Faraday Future halted construction in November 2016, after just 6 months of work. Faraday predicted construction for “Phase 2” would start again in January then in February 2017. Now the start date has been set for “sometime in 2018.”
The simple fact is the Governor’s Office of Economic Development (GOED), failed to ask one simple question: “Can an internet streaming company in China that has never produced a car in its history finance a project with margin loans (against rapidly depreciating stock) to build a $1 billion automobile manufacturing plant in Nevada?” And, then, “should we call a special session of the Legislature to award this company over $200 million in tax incentives and a $175 million bond to finance needed infrastructure?”
Faraday’s largest (and likely sole) investor has publicly admitted he has run out of cash and is currently selling off land in Silicon Valley and Beijing; has cancelled a $2 billion acquisition; and has told officials in Vallejo CA that the company cannot follow through on plans to build yet another facility there. Several contractors have not been paid on both sides of the Pacific and law suits have been filed against the company to collect. The parent company’s stock has now been halted for the third time on one of China’s stock exchanges with the shares near an all-time low.
The GOED (Governor’s Office of Economic Development) audit my office requested is a first step in figuring out if our State has sufficient procedures for vetting companies requesting large tax breaks and multi-million dollar bonds to underwrite their activities in Nevada.
In my opinion, the time come to hold our public officials accountable for the deals they strike with your tax money.
Nevada State Treasurer