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Looks like Tesla (TSLA) and Faraday Future Will Have to Share Nevada

Tesla Motors Inc (TSLA) Model X
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Tesla Motors Inc (NASDAQ:TSLA) holds the top spot in the EV market. However, like most industry leaders, the EV maker is not without rivals. Aiming to compete against Tesla Motors and other EV makers is new up-and-comer Faraday Future. The electric vehicle start-up appears keen to outdo others in the space. It will also be joining the likes of Tesla Motors in building a production plant in Nevada.

Tesla Motors Inc Model X
Model X parked outside Tesla Motors’ Fremont plant.

Faraday Future moves into Vegas with Tesla.

Faraday Future first caught the world’s eye when it began making headlines earlier this year. The small EV-focused entity has kept fans by publicizing regular updates on its very promising goals. Now the company is once again adding to its list of aims. It has been revealed that Faraday plans to build a $1 billion assembly plant in Las Vegas.

Faraday’s venture into Vegas is expected to create around 4,500 new jobs. Its new plant is will produce the company’s eco-friendly EVs. In addition to this, the factory will also have labs in which the testing of future tech ideas will take place.

Tesla Motors Inc (NASDAQ:TSLA) too has been lured into the Las Vegas region. The EV giant recently announced its plans to expand itself in the area. Nevada regulators have made the state an ideal location for innovative businesses. This, in turn, creates jobs while harvesting the tools to grow towards a sustainable future.

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“North Las Vegas’ long list of benefits made the decision for our plant’s placement a relatively easy one.”

Lawmakers in Nevada will need to sit down with Faraday Future in order to finalize the deal. It is said to involve around $335 million in tax incentives as well as industrial upgrades.

The terms of the deal, fifty percent of plant workers will have to be residents of Nevada. Thousands of other jobs are expected to arise from the deal as well.

Las Vegas is perhaps best known for its glittering casino scenes and lively events. But Nevada is also keen on expanding its economy by diversifying it. Though seemly thriving, the state’s financial position is still seeing a number of setbacks.

Faraday Future has not been shy about listing its the goals it wants to achieve. On the other hand, the company has not been very open about its funding either. It has reported that the benefits derived from operating in Nevada have greatly influenced its decision to set up in the state. Though appealing, the incentives offered to the firm are slightly less than those offered to Tesla Motors Inc (NASDAQ:TSLA) last year.

Stacy Morris, spokesperson for Faraday Future, said the firm was looking to expand in California as well. The firm is also looking the state of Georgia and Louisiana. It plans to have an EV  available for purchase in 2017.

With the deal currently in the works, Nevada, with its seemingly endless and arid landscape, will soon house two of the largest electric vehicle focused companies in the U.S.

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Mvusi Ngubane

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