Will Faraday Future have a future if it can't stay current on its factory bills?

Faraday Future FFZERO1 Concept
Faraday Future plans to put its first electric car into production by 2018, but to do that it must first complete construction of its factory in North Las Vegas, Nevada. That could prove difficult if the company doesn’t pay its bills.

The Chinese-backed automotive startup is behind in payments to lead contractor AECOM, according to Automotive News (subscription required). The industry trade journal sourced an October 10 letter from AECOM to Faraday citing an unpaid $21 million deposit due in September. The letter gave Faraday 10 days to make the payment, which was for an escrow account to cover material costs and subcontractor work.

The letter also listed upcoming payments of $25.3 million for October, and $11.8 million for November. AECOM is overseeing $500 million worth of work on the 3-million-square-foot factory, which has a stated price tag of $1 billion. Faraday broke ground in April, although significant work reportedly did not begin until July. So far, most of that work has consisted of grading the 900-acre site. Construction of buildings has not started.

Read more: Faraday Future shows off its Formula E electric race car

In response to the Automotive News report, both Faraday and AECOM issued a statement reaffirming their commitment to work together. It said the two companies’ business relationship was “strong” and that both companies want to see the factory project continue. A Faraday spokesperson said no work stoppage would take place, although it is conceivable that AECOM will halt work if it does not receive payment.

Faraday is backed by Chinese billionaire Jia Yueting, founder of tech giant LeEco, but that connection hasn’t made it immune from questions about its financial stability. Earlier this year, Nevada state treasurer Dan Schwartz questioned whether Yueting’s assets would be sufficient to cover the cost of the factory. Nevada lured Faraday to North Las Vegas with a $215 million incentive package. In March, Faraday posted a $75 million bond and placed $13 million in an escrow account, to reassure lawmakers.

Faraday plans to unveil its first production car at CES in January. The annual electronics trade show is held in Las Vegas, not far from the company’s factory site. Faraday unveiled its flashy FFZero1 concept car there this past January, but has offered virtually no details about the production model.

Cars

Has Apple rebooted its self-driving car program to develop autonomous vans?

The on-again, off-again Apple car is back on track, but it's not a sedan or a hatchback. It will arrive as an electric, autonomous passenger-carrying van, according to a recent report.
Cars

Audi is advancing the tech that teaches cars to talk to traffic lights

Audi is teaching its cars the language of traffic lights. The company developed technology that tells motorists what speed they should drive at in order to catch as many green lights as possible.
Smart Home

Innit showcases new solutions for LG’s Signature Kitchen Suite at KBIS 2019

LG Electronics has equipped its new Signature Kitchen Suite devices with a host of technologies and guests of KBIS 2019 can check out the company's new innovations from Innit, including new adaptive cook programs.
Computing

Nvidia promises DLSS at low resolutions will be ‘top priority’ in future updates

Nvidia's deep learning super sampling needs work. Gamers know it and now we know Nvidia knows it too. The company made it clear on the technology's FAQ page that it plans to make fixing DLSS a top priority.
Cars

Waymo rules and Apple trails in California self-driving car benchmarks

California's DMV releases annual reports of self-driving car disengagements on public roads. In the most recent reports. Waymo had the best performance, GM Cruise came in second, and Apple's self-driving program was in last place.
Cars

Watch a modified Audi e-tron electric SUV drive straight up a ski slope

A modified Audi e-tron climbed up an 85-percent gradient on an Austrian ski slope in a tribute to a classic Audi commercial. The vehicle used for the stunt sported an extra electric motor and spiked tires.
Cars

Mamma mia! Alfa Romeo will unveil a new model at the Geneva Auto Show

Alfa Romeo told Digital Trends it will unveil a new model at the 2019 Geneva Auto Show. It stopped short of revealing what it has in store, but rumors claim it will be a crossover positioned below the Stelvio.
Cars

Citroën says you could drive its tiny Ami One electric car without a license

Citroën's Ami One concept car is an electric vehicle that's as cute as it is compact. The miniature motor only has a top speed of 28 mph, so the French automaker imagines it as a shareable runaround for short drives.
Cars

Arizona city slammed with $10M lawsuit over fatal Uber autonomous car accident

The family of Elaine Herzberg, the woman struck and killed by one of Uber's self-driving prototypes, has filed a $10 million lawsuit against the city of Tempe, Arizona. They claim Herzberg jaywalked because she was confused by a brick…
Cars

Mercedes lets the sun shine in one last time with SLC Final Edition convertible

The Mercedes-Benz SLC convertible sports car is going out of production. Launched in 1996 as the SLK, the model has been a fixture in the Mercedes-Benz lineup across three generations.
Cars

Aston Martin’s next hypercar, due in 2021, will pack a hybrid powertrain punch

Aston Martin will follow up the Valkyrie and Valkyrie AMR Pro with a new hypercar, code-named Project 003. The car will debut in 2021, with production limited to 500 units worldwide.
Cars

Apple opens up about its self-driving car program in letter to NHTSA

Apple has traditionally kept details about its self-driving car technology under wraps, but it has revealed details about the program in a rare instance of openness. The company takes safety seriously.
Cars

Tesla will release fully self-driving cars in 2019 — with a big asterisk

Tesla reaffirmed its goal of releasing a fully self-driving car by the end of 2019, but it warned the system won't work perfectly 100 percent of the time. Convincing regulators that it's safe to use will require some effort, too.
Cars

Consumer Reports bumps the Tesla Model 3 off of its list of recommended models

The Tesla Model 3 is one of the six new cars that have lost their coveted Recommended rating from Consumer Reports over reliability concerns. In 2018, Model 3 owners reported body trim falling off and problems with the car's glass.