Faraday Future falls behind on payments, work stops at $1 billion electric-car factory

AP Photo/John Locher

Faraday Future has stopped work on its $1 billion factory in North Las Vegas, Nevada.

The secretive, Chinese-backed automotive startup said it would build its future electric, autonomous vehicles at the plant, after holding a groundbreaking ceremony there in April.

Since then, Faraday Future has hit some speed bumps — including falling behind on millions of dollars in escrow payments meant to cover costs for the plant.

AECOM, the contractor overseeing the project, said it may resume work at the site in early 2017, according to a statement obtained by Jalopnik on Monday.

The factory project was expected to create 4,500 jobs in the economically depressed region minutes from the Las Vegas Strip.

A Faraday Future representative told Business Insider late Monday that the company is "refocusing efforts" on its upcoming production vehicle in the meantime.

In an email to Business Insider last month, Faraday Future said business between the startup and AECOM was "strong" and that it was "committed to building [the] factory of the future in North Las Vegas."

In that same statement, the company asserted that both companies were "working diligently to resolve the overdue payment."

AP Photo/John Locher

According to comments from Nevada state treasurer Dan Schwartz cited in the Las Vegas Review-Journal on Sunday, it appears that little progress was made in that endeavor. "We've expressed concerns from the beginning that Faraday didn't have the funds to undertake or complete this project," Schwartz said. "Within the last several weeks, our concerns remain unabated."

Though some Nevada state officials emphatically supported the Faraday Future project, Schwartz was one of its earliest skeptics.

The company's primary investor, Jia Yueting, sent a letter to employees earlier this month saying "We sped blindly ahead ... our cash demand ballooned. We got overextended in our global strategy. At the same time, our capital and resources were in fact limited," Bloomberg reported.

Jia is the chairman of Beijing-based tech company, LeEco, which made a splashy US debut in late October. LeEco is also planning to build its own electric, self-driving car.

Faraday Future has been teasing its upcoming production vehicle over the last several months. It's expected to make its official debut at the Consumer Electronics Show in January.

NOW WATCH: Everything we know about the Tesla Model 3