Faraday Future to Build $1B Plant in Nevada

Gardena electric auto startup Faraday Future announced Thursday that it will build a $1-billion production plant in Nevada, a major move for an upstart rival to Tesla Motors.

The Nevada governor made the announcement at a press conference.

Earlier this year, Tesla broke ground on its $6 billion Gigafactory near Reno, which will manufacture lithium-ion batteries to power Tesla’s Model S, Model X and forthcoming Model 3 electric vehicles.

In September, Beijing Electric Vehicle Co, an affiliate of government-owned BAIC Motor Corp Ltd, said it opened a technology research center in California’s Silicon Valley and is teaming with USA electric-car startup Atieva to develop electric vehicles for China and global markets.

Nevada was one of several options that Faraday has been considering while picking the home for its plant, with others including Georgia, Louisiana and California. The final selection was influenced in part by a $335-million package of tax incentives and infrastructure investments offered by Nevada Gov. Brian Sandoval, company representatives said.

The company has been positioning itself to enter the EV market in 2017 and will unveil a prototype next month at the CES in Vegas.

The new factory will be just as advanced as its electric vehicle, FF said. In fact, he’s willing to gamble $1 billion on it. On Wednesday, tech billionaire Jia Yueting, who has been called the Chinese Elon Musk, confirmed for the first time he is a founder of the company. The Governor’s Office of Economic Development offers a plethora of incentives for general business endeavors, however when large corporations establish base in Nevada, they’re often given considerable leeway.

Faraday Future is expected to bring in $760 million in state and local tax revenue over 20 years-$215 million of which would be abated through the deal. Proposed projects include an interchange on Interstate 15, widening USA 93, and building a rail port along an adjacent Union Pacific line. At its peak, the project is expected to employ 3,000 construction workers.

“It could be tough going”, said Economics Professor Edward Leamer.