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The treasurer of Nevada is heading to China to look into the fiscal health of Faraday Future’s parent company, Leshi, after trading in the firm’s shares on the Chinese stock market was halted on Dec. 7.
State Treasurer Dan Schwartz says he has a number of issues with Leshi.
“One concern is the stock price of Jia Yueting’s listed company, Leshi,” Schwartz said, “Mr. Yueting, the Chinese investor has backed Faraday Future, the company approved to build an electric car factory in North Las Vegas.”
Schwartz said Leshi’s shares halted trading on the Chinese stock exchange on Dec. 7, ostensibly due to an internal reorganization. The company was expected to resume trading last month, but officials pushed that date to March 7.
“China’s financial markets have been in a tailspin, and I need to understand why the shares of Mr. Yueting’s company will not open as previously stated,” Schwartz said. “As the state official who will issue and sign up to $175 million in general obligation bonds to finance the project, I want to feel comfortable that building the factory will proceed as the Legislature intended, and the Nevada taxpayer is protected.”
Schwartz made it clear that the trip will not be paid for with taxpayer money. He had planned the trip with is wife before deciding to look into Faraday Future.
He also made it clear that he supports the project but he does have many unanswered questions especially about Yueting's personal investment.
"Number one, I want to know that he is going to stand by his commitment and that he has the means to stand by his commitment," he said, "And that two, this would be expressed at least partially in a performance bond."
Dan Schwartz, Nevada state treasurer