Is Electric Car Startup Faraday Future Already Running Out of Cash?

Nevada's state treasurer has a message for electric car company Faraday Future: Show me the money. The company building a $1-billion factory for Faraday in Nevada has a similar message: Pay up now.

Money problems appear to be plaguing the secretive Gardena-based start-up, which is trying to rival Tesla and other automakers.

Faraday hasn't paid $21 million due in September, with bills totaling an additional $25 million due for October and $12 million for November, according to Aecom, a multinational engineering firm. The Los Angeles company is the prime contractor for Faraday's car factory under construction in North Las Vegas, which, if completed, is expected to turn out 150,000 cars annually.

Faraday also owes a $75-million performance bond to the state of Nevada.

Start-ups often run into schedule delays and financial hiccups. Just look at Tesla -- the electric carmaker almost went bust before its Model S hit it big. Even now, it continues to face questions about cash flow and is notorious for product delays.

But does what's happening at Faraday count as a minor setback or does it mark the start of a dangerous slide that puts the entire company at risk?

The privately held company doesn't release its finances. In a statement, it said that "the business relationship between AECOM and FF is strong, and we remain committed to building our factory in N. Las Vegas."

But in an Oct. 10 letter to Faraday, first revealed by Automotive News, Aecom warned that work on the site could be halted if it doesn't get its money.

Faraday plans to build an electric passenger car packed with technology but has offered no timeline for production. It has shown off a couple of concept cars and plans to unveil its production car in January.

Michelle Krebs, senior analyst at Autotrader, said whatever Faraday's financial condition, starting a new car...

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