Tesla competitor Faraday Future is planning its own Nevada factory

Gov. Brian Sandoval held a press conference on Thursday morning to officially announce a $1 billion electric vehicle manufacturing plant in North Las Vegas. The letter is signed by billionaire Chinese investor Jia Yueting (ZHAW’ YOO’-weh-ting), a major financial backer of California-based Faraday Future. A special state legislature session is also expected afterwards to discuss tax incentives for the company.

Automotive News reports that the manufacturing plant will create 4,500 jobs and that if the company follows its current timeline, it will begin producing cars sometime in 2017.

Among the reasons Faraday chose to put roots down in Nevada are “expansive development space, an enthusiastic workforce, an encouraging tax environment, close proximity to our California headquarters and nearby access to the thriving tourism capital of Las Vegas”.

Like Tesla, Faraday Future intends to seize on the favorable tax subsidies offered to companies willing to establish operations, or move to the Silver State to conduct business.

Faraday’s factory will be built in the same state as Tesla’s Gigafactory, which is located in Reno, Bloomberg noted.

However, Nevada lawmakers still have to approve the proposal.

Faraday Future, the electric auto company aiming to rival Tesla Motors has made a decision to set up a factory in Nevada. He did say that the deal hinges on approval from the Nevada Legislature. That legislation didn’t name Tesla specifically but applied only to companies that invest at least $3.5 billion in the state over 10 years. Yueting is founder and chairman of Leshi Television, a Chinese online video site. It would include $335 million in tax incentives and improvements in North Las Vegas.

Faraday expects to have 4,500 employees with an average wage of $22 an hour at the North Las Vegas factory, he said. While North Las Vegas has pushed for the creation of a water pipeline to Apex, water for Faraday will be pumped from the ground.

The plant can also be anticipated to create 9,000 oblique jobs – from homebuilders to grocery clerks to hairdressers – serving Faraday staff.

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