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Electric Car Company Construction Unplugged

Company missed $21 million escrow payment deadline

November 15, 2016

Construction work on electric car maker Faraday Future's Nevada manufacturing site has ground to a halt, reportedly due to unpaid construction payments.

Site prep work started earlier this year in North Las Vegas has been completed, according to AECOM, the construction company responsible for $500 million of work on the $1 billion, 3 million square foot plant. However, Faraday Future is reported to be behind on construction payments, missing a September deadline for a $21 million deposit to fund an escrow account to cover subcontractor work and materials costs.

AECOM released a statement saying, "At this time, Faraday Future is temporarily adjusting their construction schedule with plans to resume in early 2017. We remain fully committed to our client and our employees working on this project, and we look forward to the facility's successful delivery."

In an October interview with Autoblog.com, Faraday said, "The business relationship between Faraday Future and (construction company) AECOM is strong and we remain committed to building our factory of the future in North Las Vegas."

Faraday Future is backed in part by Chinese billionaire investor Jia Yueting. To solve the company's cash shortage, Yueting told Bloomberg.com he plans to cut his own annual salary to 15-cents.

The company has not yet unveiled a production-ready vehicle.

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