Faraday Future imperils electric-car factory, misses payment to contractor


From right: Tom Wessner, VP of Global Supply Chain at Faraday Future (FF); Ding Lei, Co-founder, Global Vice Chairman at SEE Plan at LeEco; Nevada Gov. Brian Sandoval; and Dag Reckhorn, VP of Global Manufacturing at FF turn shovels at Faraday Future's Ground Breaking Ceremony on Wednesday, April 13, 2016, in North Las Vegas.(Bizuayehu Tesfaye/AP Images for Faraday Future)

From right: Tom Wessner, VP of Global Supply Chain at Faraday Future (FF); Ding Lei, Co-founder, Global Vice Chairman at SEE Plan at LeEco; Nevada Gov. Brian Sandoval; and Dag Reckhorn, VP of Global Manufacturing at FF turn shovels at Faraday Future's Ground Breaking Ceremony on Wednesday, April 13, 2016, in North Las Vegas.(Bizuayehu Tesfaye/AP Images for Faraday Future)

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The Faraday Future company has said it aims to put its first electric car into production within two years.

To achieve that goal, the company is building a new factory in North Las Vegas, Nevada, at a stated cost of $1 billion.

Faraday broke ground on the factory in April, although significant work did not begin until July. Now, it may have halted altogether.

DON'T MISS: Faraday Future to unveil production electric car at CES in January

Faraday has yet to pay the lead contractor for the project, meaning it runs the risk that construction may come to a standstill, according to Automotive News (subscription required).

On October 10, construction firm AECOM sent Faraday a letter referencing some $58.1 million in unpaid bills.

That included a $21 million deposit that was due in September, for an escrow account to cover material costs and subcontractor work.

Faraday Future

Faraday Future

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In the letter, AECOM reportedly gave Faraday until October 20 to make the $21 million payment, or risk suspension of work at the 900-acre factory site.

The letter also listed payments of $25.3 million due in October, and $11.8 million due in November.

Work so far has reportedly consisted of grading of the factory site. Construction of the foundation isn't expected to start for several months.

ALSO SEE: Faraday's Future bumpy; Nevada nervous, first car 'no Tesla'

Faraday Future is backed by Chinese billionaire Jia Yueting, and the money from his LeEco tech empire.

But this isn't the first time the nascent automaker has run into financial issues.

After a temporary cessation in trading of stock on the Shenzen market, Nevada state treasurer Dan Schwartz expressed concern that Yueting's holdings would not be worth enough to cover the cost of the factory.

Faraday Future FFZERO1 concept

Faraday Future FFZERO1 concept

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Schwartz asked for more transparency on the funding before signing off on $120 million to cover the necessary roads, power lines, and water mains to supply the plant.

In March, Faraday put up a $75 million bond, and set aside $13 million in an escrow account, in an attempt to reassure Nevada officials that it could meet its financial obligations.

MORE: Faraday Future vs Nevada treasurer: electric cars vs taxpayer protection

Faraday plans to unveil its first production car at the Consumer Electronics Show (CES) in January.

Coincidentally, CES is held in Las Vegas, not far from Faraday's factory site.

It's also where Faraday unveiled its FFZero1 concept car this past January.

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