Finally, the race for Tesla Motors Inc (NASDAQ:TSLA)’s Gigafactory is over with Nevada winning over the other four states including Arizona, California, New Mexico, and Texas. As said by Elon Musk, CEO of Tesla Motors Inc, the winning state would have to provide 10% or $500 million of the overall cost of the factory.
According to Tesla’s spokesman, Simon Sproule,
“We continue to work with the state of Nevada, and look forward to joining the governor and the legislature.”
Tesla Motors Inc (NASDAQ:TSLA) will invest $5 billion in this Gigafactory with a creation of nearly 6,500 jobs. As reported by CNBC, the company has already chosen Nevada for the factory and it has been negotiating the terms of the contract with the state.
Rumors are that Tesla Motors Inc (NASDAQ:TSLA) has already started working on a site outside of Reno, which keeps Nevada ahead of the other states. Tesla would be able to bring its taxes considerably down and the contract would possibly exempt the company from personal income tax, gift tax, estate tax, franchise tax, and even inheritance tax. The state would offer working training subsidies with no corporate income tax for the initial period.
Tesla Motors Inc (NASDAQ:TSLA) is planning to achieve the production of at least 500,000 battery packs by the end of 2020 and the company would require 10 million square feet area for the facility. According to the experts at Lux Research, this Gigafactory would help Tesla to cut down its Tesla Model 3 cost by $2,800, although it won’t be a significant change in terms of the car’s price. The factory is likely to resolve Tesla’s battery shortage problems.
This article has been written by Prakash Pandey.