Faraday Future To Become Faraway Future As FF Faces Nevada State Treasure Audit, Another Lawsuit

Mar 05, 2017 11:42 PM EST | Andrew Davis

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Faraday Future is no stranger to lawsuits as the so-called "electric start-up company" found itself yet again a defendant in another lawsuit. This time, it comes from the visual effects company, The Mill group. Also, Nevada State Treasurer Dan Schwartz is calling for an audit the company made with the Governor's Office of Economic Development (GOED). And guess what, Tesla has also been dragged into this, too.

Dan Schwartz called Faraday Future a "Ponzi scheme" as the Nevada State Treasurer as always been a strong opponent of FF's deal to the state. He specifically called an audit regarding deals made between Tesla and Faraday Future and Governor's Office of Economic Development (GOED), reports Electrik.

As it turns out, GOED's growing authority, since 2014, has caught the attention of the State Treasurer. Thus, Schwartz is specifically seeking "more information on the projects GOED funds which have received substantial tax credits and financial assistance from Nevada taxpayers, including Faraday Future and Tesla."

"The ... audit should examine all documents, confidential or not, which were used by GOED in vetting the projects under (state laws) and the documentation which was provided to GOED which ultimately led to the approval of all projects of these statutes," added Schwartz.

A problem with Faraday Future is that Schwartz couldn't get access to the company's financials, claiming that they were dire. But the electric start-up automaker seems to be moving forward with its plans and its factory.

Adding to the start-up company's growing pain is the $1.8M post-reveal lawsuit filed by visual effects company, The Mill group. FF has not responded to any other case it faced in the past, until now when FF responded in a very 2017 manner on Twitter where it's launched litigious threats of its own.

In a nutshell, the suit was pretty straightforward: The Mill group worked on a presentation for a product demo for FF's new car and it didn't get paid. According to the lawsuit obtained by Jalopnik, FF allegedly paid only $20,000 for a $1.82 million presentation that it ordered.

It is not great to threaten to sue your own contractors. If the company wants to work with only the crème of the crop in business, then they might think twice before lashing out on everyone's favorite place: Twitter. This might spell disaster for a company who is just starting to get its bearings in place.

Faraday Future has been the subject of other lawsuits alleging unpaid bills. Two other cases were settled late last year by the company over late bills and the very public spat regarding their Nevada factory.

So, what does this mean for the electric start-up automaker that is supposed to rival Tesla? Is it about time we say hello to a "Faraway Future" for Faraday Future? Or they might suddenly rise from the ashes and blow our minds. But that is future uncertain. Until then, we'll keep an eye out for the latest updates. Stay tuned.

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