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.


Once the dust settles, 'Fallout 76' will be a nuclear wasteland worth exploring

The launch of Fallout 76 has been nothing short of apocalyptic, but that doesn’t mean the game is dead on arrival. Bethesda has a path forward, paved by The Elder Scrolls Online, another game that suffered a rocky start.
Emerging Tech

We’re going to the Red Planet! All the past, present, and future missions to Mars

SpaceX isn't the only organization pining to visit the Red Planet. Here's a detailed list of all operational and planned missions to Mars, along with explanations of their objectives, spacecraft details, and mission proposals.

Bosch’s CES-bound shuttle concept takes us on a trip to a not-too-distant future

Bosch envisions a future in which driverless shuttles occupy their own market segment. The German firm won't build the shuttles, but it wants to provide everything else, ranging from the drive system to the apps used to hail them.
Digital Trends Live

Twitch streamer Fuslie gives a glimpse of her life and future plans

Today, we welcomed Twitch streamer Fuslie to talk about how her career goals shifted from becoming a veterinarian to a full-time streamer. Also, she shared what her future plans are for streaming and created content.

These winter-warrior cars will never leave you out in the cold

Snow can be an absolute pain if your vehicle isn't optimized to handle that sort of terrain. If brutal snowstorms are an annual part of your life, we recommend you pick up one of these winter-ready vehicles.

2020 Toyota Supra caught hiding in a trailer without a shred of camouflage

Toyota's plan to once again lure enthusiasts into showrooms involves bringing back the Supra, one of its most emblematic nameplates. Here's what we know so far about the upcoming coupe, which Toyota is developing jointly with BMW.

Driving a prototype 2020 Passat at Volkswagen’s Arizona Proving Ground

Volkswagen’s Arizona Proving Ground is where new cars are tested to the breaking point, including the 2020 Passat midsize sedan. Ride along as the new Passat completes testing ahead of its 2019 launch.

NYC mandates minimum wage for Uber, Lyft, other app-based rideshare drivers

New York City's Taxi and Limousine Commission approved a rule that drivers for companies such as Uber and Lyft must be paid at least minimum wage, even though they are independent contractors. The new pay rate includes operating costs.

LM Industries’ autonomous shuttles head to Phoenix, Sacramento campuses

LM Industries will deploy Olli low-speed autonomous shuttles at school campuses in Arizona and California as part of its ongoing "fleet challenge," which asks local groups to propose uses for autonomous vehicles.
Emerging Tech

A lidar-equipped truck knows exactly how much de-icer to apply on roads

Lidar is best known as the laser-based technology that helps self-driving cars sense their surroundings. But the city of Knoxville has another, more seasonal use for it: De-icing roads.
Product Review

Boring takes a back seat as 2019 Corolla Hatchback mixes fun with practicality

We drive the 2019 Toyota Corolla Hatchback, the latest hatchback to bear the Corolla name. As the best-selling nameplate in automotive history, Toyota has high expectations to meet. This model mostly lives up to the legacy.

Hertz speeds up car rentals with biometric scan technology

Biometric security technology that uses face, fingerprint, and voice recognition is gaining traction, with Hertz emerging as the latest company to incorporate it into its daily operations.
Product Review

Inside Maserati's Levante SUV beats the heart of a Ferrari

Maserati’s luxury SUV gets a shot in the arm by way of Ferrari-derived V8 power, but is it enough to go toe-to-toe with the established players in the high performance sport-utility segment? Let’s find out.

McLaren puts the pedal to the metal in special-edition OnePlus 6T

The OnePlus 6T is yet another flagship killer smartphone, bringing powerful specifications to a much lower price than the competition. Now, OnePlus has teamed up with McLaren for the OnePlus 6T McLaren Edition.