Faraday Future and Tesla Facing Factory Audits in Nevada

Nevada’s treasurer is ratcheting up pressure on Faraday Future to meet its plant construction obligations – and this time has added Tesla to the protocol.

State Treasurer Dan Schwartz wants an audit done on both company’s manufacturing plants by the Governor’s Office of Economic Development (GOED).

Online news source This Is Reno reported Schwartz wants to see GOED use its authority to obtain more information on the companies that have received substantial tax credits and financial assistance from state taxpayers.

The treasurer is demanding the audit be launched and completed by Aug. 1 of this year. Greater transparency in such large-scale projects is vital, he said.

Issues to be researched and evaluated would include job creation, amount invested in the state by all parties involved in the plant construction projects, and how the grants were qualified.

Tesla hasn’t been criticized or investigated for questionable tactics at the Gigafactory, which started up production in January. It did receive the largest amount of transferable tax credits ever given to a company in Nevada, which could explain its inclusion in the audits.

SEE ALSO:  Tesla and Faraday Future Race to the Clouds in June

While Tesla and Panasonic are going full speed ahead at the Gigafactory, mystery still shrouds the future of Faraday.

News broke late in 2016 about the company looking like many other startup electric carmakers that pull the shutters on the plant when cashflow runs out. Top executives were leaving the company. More recently, the company said it would be scaling down the size of its North Las Vegas plant and had brought in a BMW and Deutsche Bank veteran to sort out its finances.

Schwartz’s concerns about Faraday Future has been clear, having called the startup’s moves a “ponzi scheme.”

GOED Executive Director Steve Hill says that agency will cooperate with Schwartz’s audit request.

“We have spoken with the Administrator of the Division of Internal Audits and have expressed our commitment to fully cooperate with any audit the Division determines appropriate,” Hill said.

Inside EVs