By: Christian Okolski
A little more than a week ago, Tesla Motors announced that it had selected Nevada to be the home of its state-of-the-art battery gigafactory. Tesla’s CEO, Elon Musk, and the Governor of Nevada, Brian Sandoval, also attended a press event in the Silver State to make the announcement and reiterate the benefits that will arise from the electric vehicle maker’s new battery factory. Musk even expressed his enthusiasm by calling Nevada a “get things done state”. Tesla’s decision is not a complete surprise, since just recently, this blog reported that Nevada was the frontrunner in the gigafactory’s site selection sweepstakes, which has seen fierce competition from five states, Arizona, California, Nevada, New Mexico, and Texas.
For those who are unfamiliar with the gigafactory saga, Tesla released its plans to build the ten million square foot battery facility somewhere in the Southwest, and it has been deliberating on where exactly to locate it until two weeks ago. While the initial states in contention included Arizona, Nevada, New Mexico, and Texas, the field was expanded after requests for consideration were made by California, the home of Tesla’s Palo Alto headquarters. Ultimately, the five states trying to secure Tesla’s gigafactory have been negotiating incentives deals with the automaker in hope of luring the revolutionary gigafactory and its estimated 6,500 jobs. It seems now, that Nevada has presented Tesla with the best deal.
As Forbes reported, Nevada has promised Tesla approximately $1.3 billion in tax rebates over the next 20 years, which would cover at least 25 percent of the projects total cost of $4-5 billion. This offer is the 10th largest incentive package offered to a company in the United States. In return for its newly awarded $1.3 billion in financial assistance Tesla will be required to invest at least $3.5 billion in manufacturing equipment and other property in Nevada. According to the Las Vegas Review-Journal, while a special legislative session was needed to approve Tesla’s benefits, the legislation to solidify the deal was unanimously passed by the State Legislature and signed by Governor Sandoval last Thursday.
After last Thursday’s approval and the finalization of a $1.3 billion in financial assistance, Tesla has won much more than the 10 percent of public funding that it originally desired for the project. In return, the State will reap billions in economic activity, thousands of new jobs, and one of the greatest initiatives of innovative technology development and manufacturing in America. It turns out that Elon Musk was right, and Nevada is indeed a “get things done state”.