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.

Smart Home

I have seen the future, and it’s full of salad-making robots

Think that robots bussing tables, tossing salads and baking bread is a futuristic concept? It's actually not as far away as you might think. Robots took center stage at a food robotics summit in San Francisco this week, where they showed…

2020 Cadillac CT5 luxury sedan gets turbocharged power, chiseled looks

The 2020 Cadillac CT5 proves the General Motors luxury brand still cares about sedans. Debuting at the 2019 New York Auto Show, it features Cadillac's Super Cruise tech and a lineup of turbocharged engines.

Qiantu K50 is a Chinese electric sports car that’s coming to the U.S.

The Qiantu K50 is a Chinese electric sports car that will be marketed in the United States by California-based Mullen Technologies. The carbon-fiber bodied, 402-horsepower K50 is expected to go on sale in 2020.

Karma Automotive unveils two head-turning concept cars, quicker 2020 Revero GT

Karma Automotive brought three new cars to the 2019 Shanghai Auto Show, including a long overdue redesigned version of its Revero plug-in hybrid, an all-electric concept car, and a concept coupe designed in concert with legendary Italian…

More tech and more space make the Mercedes-Benz GLS the S-Class of the SUV world

Mercedes-Benz introduced the second-generation GLS at the 2019 New York Auto Show. The company's biggest and most luxurious SUV gains more tech features in its quest to become the S-Class of the SUV world.

Would you buy the Tarok compact pickup truck? Volkswagen wants to know

The Volkswagen Tarok pickup truck concept will make its United States debut at the 2019 New York Auto Show. The truck first appeared at the 2018 Sao Paulo Auto Show, and VW wants to see what U.S. buyers think of it.

Sick of civilization? Volkswagen’s Atlas Basecamp concept lets you get away

Volkswagen revealed the Atlas Basecamp concept ahead of its debut at the 2019 New York Auto Show. Built for overlanding, this family-hauler was upgraded jointly by Volkswagen and aftermarket manufacturers.

The 2020 Nissan GT-R Nismo sheds weight, uses racing tricks to stay sharp

The 2020 Nissan GT-R Nismo isn't dramatically different from the 2019 model, but Nissan made changes where it counts. The updated GT-R Nismo is lighter and offers better aerodynamic performance, according to Nissan.

Nikola previews $80K NZT off-road EV speedster with 590 horsepower

Nikola Motor is taking reservations for the NZT, a high-performance, all-electric off-highway vehicle (OHV). The $80,000 NZT has 590 horsepower, 775 foot-pounds of torque, and reaches 60 miles per hour in 4 seconds.

Bored with stock? The best tuner cars are begging to be modified

Modification has been around almost as long as the automobile itself. Here are 25 of the best tuner cars you can find, ranging from American muscle standouts to Japanese drift cars.

21 charged in Chicago carsharing heist; 100+ cars stolen, many still missing

More than 100 Mercedes-Benz vehicles belonging to carsharing service Car2Go were stolen in Chicago. Police are still working to recover all of the cars, which are equipped with GPS, and 21 people have been charged.

The VR goggles you wear to shoot alien ships is helping Magna design car parts

Canadian automotive supplier Magna has started using virtual reality in its research and development department. The technology helps engineers get a better view of what they're working on, whether it's an interior part or a powertrain.

From rugged wagons to hot sports cars, the 2019 NY Auto Show brought it all

From city cars to supercars, anything goes at the New York Auto Show. Automakers from all over the globe traveled to the 2019 show to unveil their newest concept cars and production models.

Toyota leads $1 billion investment in Uber’s self-driving tech division

In a move that has been a long time coming, Uber filed its S-1 documents, which sets the stage for the company to finally go public with an initial public offering. The company could be valued at more than $100 billion.