A Chinese billionaire is betting on Las Vegas to win big in the electric car segment, expressing intention to build a billion-dollar factory in the state of Nevada.
Jia Yueting, founder of a Chinese online video firm, wrote to the state legislature his plans for a final assembly plant for his new company, called Faraday Future, that will create electric vehicles.
"We hope to bring our $1 billion investment to North Las Vegas and open our first manufacturing facility there, creating 4,500 jobs," the letter stated.
The realization of the Las Vegas plant will determine when the vehicle will be built and sold. Yueting’s company plans to present the first design concept at next month’s Consumer Electronics Show, and then introduce the vehicle in 2017.
Republican Gov. Brian Sandoval is scheduled to hold a press conference on Thursday, Dec. 10, to formally announce the investment and the tentative agreement to build the plant in North Las Vegas. A special state legislature session is also expected afterwards to discuss tax incentives for the company.
How then will this new potential player affect Tesla and other traditional auto makers already developing similar technology?
Jia cited his plans for Faraday Future to revolutionize the auto industry. “[We will be] creating an integrated, intelligent mobility system that protects the earth and improves the living environment of mankind, so that everyone can breathe clean air and enjoy a seamlessly connected lifestyle,” he wrote in the letter.
Faraday Future is buoyed by a number of former Tesla, BMW, and other auto and tech executives, with offices in Silicon Valley in Los Angeles; Beijing, China; and Duesseldorf, Germany. It has not, however, named a CEO yet.
For Stephanie Brinley, senior analyst at Michigan’s IHS Automotive, she does not see a novelty behind the announced plans. "I'm not saying they can't succeed, but they're not going to be first," she said.
Economic professor Edward Learner had grim projections for upstarts, saying they might even find it difficult to sell enough units to break even. “That whole electric vehicle marketplace is tough, with oil prices low,” he said.
More China-based companies are trying their hand at U.S. transportation, including a high-speed train proposed to run from Southern California to Las Vegas, as well as an electric bus line.
Photo: Steve Jurvetson | Flickr
