The state treasurer has criticized Faraday Future's tax deal as a "Ponzi scheme," despite reassurances from the Governor's Office of Economic Development.
Nevada's treasurer has demanded an audit of incentive deals that attracted Faraday Future and Tesla to build factories in the state.
State treasurer Dan Schwartz wants more information "on the projects [the Governor's Office of Economic Development] funds which have received substantial tax credits and financial assistance from Nevada taxpayers, including Faraday Future and Tesla," according to a ThisisReno report.
"Since 2014, the powers granted to GOED have continued to grow," he added.
Tesla's presence has attracted little criticism, as the Gigafactory is moving forward as planned and continues to bring jobs to Nevada, but Schwartz nonetheless wants to investigate Tesla's sale of $20 million in tax credits to MGM Grand in Las Vegas.
Schartz has been a more vocal critic of the Faraday Future deal, which he describes as a "Ponzi scheme." State legislators were skeptical of the China-backed company's financial viability before the incentive package was offered, but the concerns were not enough to stop the GOED from signing off on more than $300 million in benefits.
Recent reports suggest Faraday Future has downscaled its plans from the original promise of a $1 billion factory. A North Las Vegas city manager suggests the project has been reduced to a 650,000-square-foot layout.
Nevada's director of economic development, Steve Hill, recently defended the FF incentive package and argued that the taxpayer-funded infrastructure buildout will be "critical for more than just Faraday, in the event Faraday doesn't move forward."