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Gigafactory Chooses Nevada, State Preps $1.2 Billion Incentive Package

When Tesla Motors announced that it looks forward to join Nevada state officials for a 'major economic development announcement' in Carson City, we had a sneaking suspicion that this jigsaw is just about to fall into place. Our hunch was confirmed and the official site for the Tesla Gigafactory has been selected.
Tesla Gigafactory sketch 1 photo
The American electric vehicle manufacturer's own Elon Musk and Nevada Governor Brian Sandoval delivered the news, but there's one thing that is slightly worrying and might upset taxpayers from Nevada. Musk was expecting state officials to prepare an incentive package worth 10 percent ($500,000) of the total Gigafactory investment, but Nevada really outdid itself with the $1.2 billion it'll chip into the facility over the following 20 years.

That humongous amount of green dollar bills will basically let Tesla operate the Gigafactory tax-free for a whopping 10 years, without even mentioning other special treatments with electricity rates or tax credits and abatements. If we're to be frank here, that's a little bit too special treatment for a privately held company, a costly special treatment to be more precise. Those $1.2 billion come as an addition to the $1 billion and battery tech Panasonic will give Tesla in support of the Gigafactory facility.

Elon Musk is certainly feeling like he's hit jackpot at this moment. Gov. Brian Sandoval announced: “This is great news for Nevada. Tesla will build the world’s largest and most advanced battery factory in Nevada which means nearly one hundred billion dollars in economic impact to the Silver State over the next twenty years. I am grateful that Elon Musk and Tesla saw the promise in Nevada. These 21st century pioneers, fueled with innovation and desire, are emboldened by the promise of Nevada to change the world. Nevada is ready to lead.”

“I would like to recognize the leadership of Governor Sandoval and the Nevada Legislature for partnering with Tesla to bring the Gigafactory to the state. The Gigafactory is an important step in advancing the cause of sustainable transportation and will enable the mass production of compelling electric vehicles for decades to come. Together with Panasonic and other partners, we look forward to realizing the full potential of this project,” declared Elon Musk, chairman, CEO and mastermind of Tesla Motors and the Gigafactory project.

 
 
 
 
 

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