Faraday Future investor Jia Yeuting has no money: Nevada State Treasurer

While Faraday Future has been testing out its upcoming all electric crossover in the desert, it isn’t clear if the vehicle will see production, at least at the company’s Las Vegas vehicle factory in Nevada. According to the China Daily, a state official told the news outlet that he was concerned about the fate of the company’s billion dollar plant. Nevada State Treasurer Dan Schwartz said that he was not sure about the company’s financial strength because its is backed by Jia Yueting, CEO and founder of LeEco. The Faraday Future plant that is set to open up close to North Las Vegas in 2017 has been seeing delays lately.  “The projects Jia invested in, including in China, seem very difficult for him personally to realise,” Nevada State Treasurer Dan Schwartz said in an interview with China Daily. “If you look at Leshi (LeEco’s listed arm) it has roughly $6 billion in revenue, but it’s netting about $50 million. That profit margin is less than 1 percent … Grocery stores make 2 percent to 3 percent,” said Schwartz. “It’s clear Mr Jia doesn’t have any money, it’s clear that Leshi isn’t making money. That’s the reason for my concern.” According to Schwartz, Faraday Future has not paid its construction bills which is why work on the factory is currently on hold. But according to an official statement from Faraday Future, the company claimed that the work never came to a halt. Faraday claims that the first phase of construction has been completed and that the company plans to start the second phase in February next year. In a turn of events, Jia Yueting has defended his move. He told the Xinhua News Agency that he was ready to call Schwarz’s words defamation, “The Nevada Treasury accusations are unfounded and totally inconsistent with the facts, we suspect defamation, but our channels of communication are always open.”