Tesla Gigafactory gets new home in Nevada with $1.3 Billion deal

This last Thursday September 11, Nevada Governor Brian Sandoval signed a package of bills that would give Tesla Motors a 1.3 Billion dollar tax break package to build their new Gigafactory in Nevada.

gigafactory_aerialTesla Motors, an electric car company founded by entrepreneur and current CEO of Tesla and Spacex, Elon Musk, had been negotiating a home for the mammoth renewable energy lithium-ion battery factory with a few states, including Texas, Arizona, New Mexico, California, and Nevada. The deal won the most support on the second day of the two day session that Governor Brian Sandoval called to try and secure an arrangement for the factory’s location in an industrial park 20 miles east of Reno.

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Breakdown of the factory

The largest portion of the deal allows Tesla sales tax exemptions for 20 years (estimated to value at about $725 million) and savings of an estimated $300 million in payroll taxes over the next 20 years as well.

It seems Sandoval was more than eager to propose the agreement, exclaiming that it has “changed the trajectory of Nevada forever” as the Gigafactory would revitalize Nevada’s economy, that still hasn’t fully recovered from the Recession in 2008. The conditions of the Gigafactory include that half of the factory’s employees must be from Nevada. The factory would create an “estimated 3,000 construction jobs, 6,500 factory jobs, and 16,000 indirect jobs,” (Reuters.com)

Press released image of factory's location
Press released image of factory’s location

“The factory is crucial to the company’s mission of mass producing affordable electric cars within three years,” said Tesla’s vice president of business development Diarmuid O’Connell.

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