EV startup Faraday Future to set up $1 bln plant in Nevada

Faraday Future, an electric auto venture with backing from Chinese billionaire Yeuting Jia, announced plans on Dec 10 to invest US$1bil (RM4.29bil) to build its first manufacturing facility in Las Vegas to make what it touts as “cars of the future”.

Governor of Nevada, Brian Sandoval will hold a conference on Thursday morning in Las Vegas.

“Is this good for Nevada?”

Faraday said that they chose North Las Vegas to be the location of their production facility due to the long list of benefits it provides. A special state legislature session is also expected afterwards to discuss tax incentives for the company.

Faraday Future plans to unveil its prototype at the Consumer Electronics Show in January in Las Vegas.

The package is expected to be similar to the incentives hammered out by lawmakers to entice Tesla Motors to build its $5 billion lithium-ion battery factory at the Tahoe Reno Industrial Park in Storey County, east of Reno.

The firm would obtain an entire gross sales tax rebate for 15 years, in contrast with Tesla’s 20-yr time period.

Hill said the road improvement project would take priority and could push other projects in the state back in the Nevada Department of Transportation’s queue.

Faraday said in the letter that the 4,500 new jobs will be in positions that include a wide variety of professionals and manufacturing employment opportunities. The company expects to create 4,500 new jobs as part of what it considers the first phase of the project.

Half of the plant’s staff have to be Nevadans, in accordance to the settlement. Debra Moritz, Leader of Cushman & Wakefield’s Strategic Consulting practice commented that, “Few projects in the US or world can match Faraday Future’s in terms of its impact not only on a specific industry but on a community as well”.

Jock O’Connell, global trade economist with Beacon Economics in California, said he remained doubtful. He referred to as it a danger to set up equipment, rent individuals and create an meeting line within the intensely aggressive vehicle market. “You don’t need a large building to develop technologies”.

Rindels reported from Carson City, Nevada.