A government official has contradicted FF's official claim that it has not scaled back its original plans.

Faraday Future is reportedly aiming to kick off production at a scaled-down factory in Nevada by 2018, according to Nevada's office of economic development.

Reports of a smaller factory emerged after numerous reports detailed alleged money struggles at the China-backed startup. The company denied the claims, arguing that it has not backed down from its promise to build a $1 billion factory in North Las Vegas.

Speaking to The Record-Courier, the executive director of the governor's office of economic development, Steve Hill, appeared to corroborate the reports pointing to a smaller factory footprint. He suggests FF will "phase the construction," starting with a 650,000-square-foot facility capable of building up to 12,000 vehicles annually.

"Frankly I think it's a smart strategy," he added.

The agency immediately faced criticism after committing to infrastructure subsidies while Faraday Future kept its leadership and finances hid from public scrutiny. Some analysts doubt FF will be able to follow through with its promises, potentially leaving taxpayers on the hook for millions in infrastructure projects, but Hill claims the company has already spent $160 million to purchase the property and complete engineering and utility work.

FF insists it will eventually build a 1.6-million-square-foot factory at the site.