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Faraday Future deal “game over,” says State Treasurer

Faraday Future deal “game over,” says State Treasurer. 11/30/16 (KSNV)

It has been billed as the future for North Las Vegas. An electric car company with a dynamic design and a wealthy owner. Jia Yeuting is one of China’s richest people. He’s the CEO of LeEco a company that wants to challenge Apple, recently bought American TV maker Visio for $2,000,000,000 and is now entering the world of electric cars with Faraday Future.

That future starts in North Las Vegas.

RELATED | Faraday Future breaks ground in North Las Vegas

The State agreed almost a year ago to a deal that handed Faraday Future $337 million in incentives, including $175 million in bonds.

At that point, the car company had yet to build a car.

Now State Treasurer Dan Schwartz says he believes they never will, at least, not in Nevada.

“Personally I think it's over.” Schwartz told us “I think it was over pretty much before it began.”

The Treasurer says he refuses to sign any bond until Faraday Future can prove it has the money to back it up.

Construction at the North Las Vegas site as LeEco reportedly shifts money into building their car. They plan on unveiling it at the Consumer Electronics Show in January.

But Schwartz says he believes the company is overextended. Margins are too low, he believes in keeping the LeEco afloat.

“I think he’s out of money.” Schwartz says of Yeuting “Could he get more money? My sources in China say the government there isn’t financing him. I wonder where and how they’re going to continue this project.”

Schwartz claims that regular bi-weekly phone conversations between the Treasurer’s office and the company have been put on hold indefinitely. He has harsh criticism for the politicians that made the deal.

“I think the Governor owes it to the people of this state to tell us what’s going on here,” said Schwartz said. “I just don’t think he (Governor Brian Sandoval) is plugged into what is going on in the State.”

The Governor’s Office tells us they plan on commenting but due to timing, they likely would not be able to before Thursday.

Faraday Future could not be reached for comment but a few hours after our request for an interview they tweeted “We will unveil the future at #CES2017”.

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