After competing with four other states in the race to get the first Tesla Motors Inc (NASDAQ:TSLA)’s first Gigafactory, Nevada is finally the first state to get the battery plant. The Governor of Nevada announced incentives of $1.3 billion along with some insights into the factory plants.
As per the announcement made by Brian Sandoval, Governor of Nevada, the state has won the battle, although the win came with $1.3 billion in tax breaks and additional incentives that must be approved to finalize the deal. Sandoval further added that it is a remarkable achievement because the factor will add nearly 22,000 jobs and boost the economy with $100 billion over the next 20 years.
The critics have claimed this to be an expensive deal for the state and even added that Sandoval is rather exaggerating the outcomes.
He further added,
“Even the most skeptical economist would conclude that this is a strong return (on investment) for us.”
Elon Musk, CEO of Tesla Motors Inc (NASDAQ:TSLA) attended the ceremony and told attendees that the factory will likely be ready by 2017. The most surprising announcement was the fact that Nevada was not the state with highest incentive package, although Musk didn’t mention the state’s name with the highest incentive package. He further added, “It’s a real get-things-done state,” and how the state prevailed in the competition.
Tesla Motors Inc (NASDAQ:TSLA) is banking on this factory to resolve its battery shortage issues. It targets to produce up to 500,000 battery packs per year by 2020. The Gigafactory would require investments worth $5 billion out of which the state will pay up to $500 million as initial contribution.
This article has been written by Prakash Pandey.