Copyright 2014

Chinese billionaire's plan to beat Tesla has a Vegas problem

You can see where this leads, Schwartz said in a phone interview. His Internet company is successful, but that doesnt generate the billions of dollars hed need. Wheres he going to get the money?

The financing questions surrounding Jias foray into the US electric-car market are becoming more common around the world as China Inc. embarks on an unprecedented overseas shopping spree. The nations firms, which boosted outbound direct investment by 62 percent in January-May from a year earlier, are branching out even as rising debt levels and weak profits at home cast doubt over their ability to secure stable funding.

Faraday, whose 1,000-horsepower concept car has drawn comparisons to the Batmobile, says it has the full support of Nevadas governor and is pushing forward with the city of North Las Vegas on infrastructure planning. The 800-employee carmaker -- a separate company from Leshi thats majority-owned by Jia -- has sought to address Schwartzs concerns, but could technically build the plant without the state bonds, Faraday spokeswoman Stacy Morris said in an e-mailed reply to questions.

Jia has invested more than $300 million of his own money into Faraday and the firm will announce a round of outside funding within weeks, said Winston Cheng, a former Bank of America Corp. investment banker who now runs corporate finance for Jias companies. He said the size of the funding would be meaningful and come from Asian investors, while declining to provide more details.