GOV. SANDOVAL SAYS NV TAX PAYERS PROTECTED AFTER FARADAY CRASHES PROJECT

GOV. SANDOVAL SAYS NV TAX PAYERS PROTECTED AFTER FARADAY CRASHES PROJECT

July 10, 2017

Today Faraday officially pulled the plug on it’s electric car factory here in Nevada. This, after a special session in which Gov. Sandoval assured voters the $335 million in tax payer money was secure.

Faraday Futures planned on building a million square foot factory in North Las Vegas with help from Nevada taxpayers to the tune of $335 million dollars.  But the company didn’t even have a working prototype at the time they received funding approval and support from Gov. Sandoval.

Gov. Sandoval’s Office of Economic development issued the following statement:

Faraday Future has informed the Governor’s Office of Economic Development (GOED) that it has put the construction of its factory in North Las Vegas on hold.

Throughout the process of working with Faraday, the state recognized both the opportunity a large manufacturing facility could provide as well as the inherent risk associated with a start-up company attempting this endeavor.  In order to completely protect the citizens of Nevada from risk, the agreement with Faraday requires the company to fully invest a minimum of $1 billion in order to receive any state incentives.  In accordance with this agreement, Faraday has paid all taxes owed to a Trust Fund established by the state.  The agreement with Faraday held Nevada’s citizens harmless from the risk associated with this project.

State Treasurer Dan Schwartz Statement:

“We all make mistakes, but this one was obvious. Long after it became apparent that ‘a
mysterious Chinese billionaire’ and Faraday Future could never build a $1 billion electric auto
plant, Nevada state officials continued to insist that Faraday Future would magically create 4,500
jobs in North Las Vegas. Now, Jia Yuteng, Faraday’s funding source, has had his assets frozen
by a Shanghai court and is under increasing scrutiny in China for what amounts to fraud; the
automobile plant is just a pile of sand in the APEX Industrial Park; and, the promised jobs are
yet another mirage in the Southern Nevada desert.
“The only good news is that the Treasurer’s Office continued to press for financial information
from Faraday and refused to issue the $175 million bond without detailed information.”

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