California Loses Tesla after Rejecting Environmental Degradation

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Tesla Motors will build their new factory in Nevada.
Image: 360b /

Electric carmaker Tesla has chosen to build its new gigafactory in Nevada in a deal amounting to roughly $1.25 billion in incentives. The deal was struck after California had offered the company roughly $500 million in a package of incentives to build a gigafactory in its home state.

The Reno Gazette-Journal said the offer was “unprecedented in size and scope for the state of Nevada and is one of the largest in the country.” If approved, the package would be the 10th-largest offered by a state to convince a company to invest. About $725 million of the deal is in the form of a 20-year 100% break from paying sales tax. Another $332 million in property tax abatement and an upfront $195 million in tax credits the company can sell are also significant incentives for Tesla.

In exchange for these incentives, Tesla must agree to invest $3.5 billion in manufacturing equipment and other property in Nevada. Nevada Governor Brian Sandoval said the deal would infuse $100 billion into the state economy during the contract’s duration and provide employment for 6,500 factory workers, which would be a huge boon to the local economy.

This is huge for the city of Reno, which has continued to develop with companies like eBay and Toys R Us opening warehouse facilities.

“They’re going to change the course of history within this community and within this state,” said Lance Gilman, the Stetson-wearing developer of the industrial park where Tesla will build.


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