Faraday Future Plans To Build $1 Billion Factory In The Same Region As Tesla

Chinese-backed electric carmaker Faraday Future plans to build a $1 billion manufacturing plant in North Las Vegas, according to a letter sent by the company to Nevada officials this week.

North Las Vegas prevailed over cities in California, Georgia and Louisiana as the site for California-based Faraday’s first manufacturing operation, which may begin as soon as January. The company’s major rival, Tesla Motors, is building the world’s largest lithium-ion battery factory in the same state, after choosing Nevada over four other states. Faraday plans to begin manufacturing its car in 2017 with expectations to compete with Tesla’s Model S.

“This solidifies Nevada as the place where the future of transport is happening,” said the state’s economic development director, Steve Hill. “People throughout the globe, throughout the country, are talking about Nevada. This is an exceptional opportunity.”

However, Faraday’s tentative agreement to build the factory is contingent upon the state authorizing major tax incentives.

“I’m excited about the opportunity and I hope it works out,” said Republican Assembly Majority Leader Paul Anderson, who will need to rally legislative support for the deal. “I look forward to working with people across the board to see if we can get these jobs created.”

Although rumors have been circulating about the possibility Apple is behind the secretive development plans of Faraday, Chinese billionaire Jia Yueting is now known to be the company’s leading financial backer. Yueting is also the founder and chief executive of Leshi Internet & Technology Co., and identified himself as one of a group of investors in a letter laying out Faraday’s intentions, which was sent to Nevada legislators. Some have called Mr. Yueting “the Chinese Elon Musk.”

Faraday promises to develop a car with a longer range than Tesla’s offerings, and it has recruited employees from BMW and GM, as well as from Tesla. Although many automakers have struggled to achieve profits with electric models, Faraday says it aims to make money not just on the vehicles but also on subscriptions for apps and infotainment in the car. The company plans to unveil a concept car next month at the CES electronics show in Las Vegas.

The company expects to have 4,500 employees at the North Las Vegas factory, with an average wage of $22 per hour. The plant is expected to have a total economic impact of $85 billion over 20 years and to generate $760 million in tax revenue during that period for state and local governments and schools, according to estimates stated by Hill.

The mysterious electric carmaker hasn’t yet revealed the name of its chief executive officer or identified its battery supplier. Faraday is the latest Chinese-backed startup to begin work on electric cars in the United States, along with Karma Automotive LLC and Atieva, to take advantage of the country’s engineering and design knowledge.

In 2014, Nevada Governor Brian Sandoval convened a special session to approve tax incentives worth as much as $1.25 billion for Tesla’s Reno factory. Although that legislation didn’t name Tesla specifically, it applied only to companies that invest a minimum of $3.5 billion in the state over 10 years. Therefore, Faraday’s $1 billion factory wouldn’t qualify.

The automaker has provided very few details on its product so far, but it has spoken in broad terms about its vision to transform transportation and has said that it has a diverse funding strategy to bring its concept to fruition.

“We plan to revolutionize the automobile industry by creating an integrated, intelligent mobility system that protects the earth and improves the living environment of mankind,” wrote Yueting.