• Image Credit: Tesla Motors
  • Image Credit: Tesla Motors
  • Image Credit: Tesla Motors
  • Image Credit: Tesla Motors
  • Image Credit: Tesla Motors
  • Image Credit: Tesla Motors
  • Image Credit: Tesla Motors
You want details on the Gigafactory? You got 'em. At least the preliminary ones. At an event with Nevada Governor Brian Sandoval this afternoon, Tesla Motors announced that its first Gigafactory will be built outside Reno. As was leaked yesterday and confirmed by unnamed state officials today, the plant will be where Tesla will make a big statement not only about EVs but also the power of Nevada to further that particular fight.

The incentive package is worth $1.2 billion over 20 years.

Tesla CEO Elon Musk, speaking in Carson City, said that Nevada did not offer the biggest incentive package, but that, "This is not just about the incentives. [Nevada is a] really get things done state. That was a really important part of the decision," according to the Reno Gazette-Journal. That said, the incentive package is still more than twice what Musk originally said would be needed. The state worked out a deal with the automaker that will be wordh $1.2 billion over 20 years and should basically let Tesla operate tax-free for ten years, the RGJ reports. ​That will not surprise some people.

The RGJ breaks down the numbers this way:
  • $725 million for a 20-year 100 percent sales tax abatement
  • $332 million for a 10-year 100 percent property tax abatement
  • $120 million in transferable tax credits
  • $75 million in transferable tax credits worth $12,500 per job times 6,000 jobs).
  • $27 million for a 10-year, 100 percent modified business tax abatement
  • $8 million in discounted electricity rates for eight years
The Gigafactory is Tesla's answer to the question of how it will be able to make a $35,000 EV that will be able to over 200 miles on a charge. Tesla CEO Elon Musk has said that a 30-percent decrease in cost for the batteries is "probably conservative at this point." The Reno Gigafactory could be in operation by late 2016. Tesla is partnering with Panasonic on the plant. The governor thanked Senator Harry Reid, who he said played an important role.

Whether the Reno announcement is the first of many remains to be seen. For now, the other states that wanted the plant, like California and Arizona, remain hopeful. Tesla's official statement and a short local news report on yesterday's rumors are available below.

Show full PR text
Nevada Selected As Official Site for Tesla Battery Gigafactory
Thursday, September 4, 2014

CARSON CITY, NV – Governor Brian Sandoval and Elon Musk, Chairman and CEO of Tesla Motors, announced today that Nevada has been selected as the official site for the Tesla Gigafactory.

"This is great news for Nevada. Tesla will build the world's largest and most advanced battery factory in Nevada which means nearly one hundred billion dollars in economic impact to the Silver State over the next twenty years. I am grateful that Elon Musk and Tesla saw the promise in Nevada. These 21st century pioneers, fueled with innovation and desire, are emboldened by the promise of Nevada to change the world. Nevada is ready to lead," stated Governor Brian Sandoval.

"I would like to recognize the leadership of Governor Sandoval and the Nevada Legislature for partnering with Tesla to bring the Gigafactory to the state. The Gigafactory is an important step in advancing the cause of sustainable transportation and will enable the mass production of compelling electric vehicles for decades to come. Together with Panasonic and other partners, we look forward to realizing the full potential of this project," said Elon Musk, Chairman and CEO of Tesla Motors.

"On behalf of the State of Nevada, I would like to acknowledge this monumental day and provide my initial support. This is a significant opportunity to make a major stride to improve our statewide economy. I look forward to receiving the necessary information so the Legislature can meet and take necessary action to support this major industry coming to Nevada," stated Speaker Marilyn Kirkpatrick.


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    • 1 Second Ago
  • 144 Comments
      AutoClubHero.com
      • 8 Months Ago
      Hey if it provides over 6000 jobs, a lower priced Tesla electric vehicle, positive effective on the environment with less dependency on fossil fuels, more power to the automaker. The 1.2 billion incentive package is nothing compared to the tens of billions put back into the economy through what Tesla will provide over 20 years. An all around good deal I think.
      Rex Seven
      • 8 Months Ago
      Any greentards at Autoblog RED want to whine about corporate welfare right now? I didn't think so.
        brotherkenny4
        • 5 Months Ago
        @Rex Seven
        Only that corporate welfare that goes to 100 year old companies with 100 year old technology and the largest single market in the world and the largest single industry profits in the world.The "corporate welfare" as you call it is intended to be for young industries that will have significant social and economic benefits for the country if they can be gotten over the early risk days. A perfect example of a 100 old industry that doesn't need the corporate welfare is the oil industry and an example of one that does is the EV battery industry. Exxon will keep us spending a billion dollars a day on foriegn oil while Tesla will eliminate the need for that oil and build an industry where the manufacturing is domestic and the energy source is domestic. So, now that I think of it, why don't we cut Fossil energy from the DOE budget, get rid of tax breaks and production incentives for oil companies and use the money to subsidize EVs and battery production even further. It would be better for the people in the long run. Granted the oil company shills and the oil companies will take a hit, but too bad.
        BipDBo
        • 5 Months Ago
        @Rex Seven
        Can we stop throwing tards around guys? Grow up.
        knightrider_6
        • 5 Months Ago
        @Rex Seven
        Any GOPtards at Autoblog want to whine about government bailout right now? I didn't think so.
      carnut0913
      • 8 Months Ago
      So Reid and the governor probably got paid 12MM to push 1.2B in tax breaks that the working man will have to cover... Nice.
        jeff
        • 8 Months Ago
        @carnut0913
        So???? They gave away tax money that they would NOT have collected if Tesl did not build there....
        archos
        • 8 Months Ago
        @carnut0913
        Same crowd that attacked Tesla for the low interest loan (back when the stock was in the $20s). Now they're back and ditsy as ever.
      BipDBo
      • 8 Months Ago
      I wonder what the water usage will be for the battery factory? As I understand, making an ICE vehicle can use quite a bit of water. I think that's used mainly in working with metals, such as degreasing stamped steal with water vapor. I would think that there are similar needs for water when manufacturing batteries, especially when recycling is employed. Right now, water out there is gold. I sure would love to do the HVAC design on that factory. I have some industrial HVAC design and LEED experience, so this would be right up my alley. On the rendering, I don't see anything for air conditioning heat rejection. It's likely that they are planning on ground source heat pump. In general, a good application because of efficiency, but it has risks. That building will likely be very well insulated and will only need net heat for a very, very small portion of the year, if any portion. Geothermal heat rejection works best when there is close to 50/50 cooling and heating demand. I have been advised by geothermal heat pump manufacturers that in such "mostly cooling" applications, there is a danger of "heat soaking" the ground over the years, and causing a slow, gradual but significant loss in capacity and efficiency. To avoid this, they will need to spread that ground source piping over a very big portion of land.
        purrpullberra
        • 5 Months Ago
        @BipDBo
        Won't the site be big enough to accommodate a couple geothermal systems? And can the heating be mitigated by waste water? On that topic, I wonder if the roof will catch much rain. I assume they'll capture that. Ultimately they will recycle water as if they are on a spacecraft. Maybe from the sinks and toilets too. That would make the tour fun, "maybe drink our workers pee from the water fountain"! LOL
        BipDBo
        • 8 Months Ago
        @BipDBo
        I think that ABG is just still using the old comment system to get us to appreciate the new one. This is horrible.
        jeff
        • 5 Months Ago
        @BipDBo
        Actually the lack of water (actually humidity) is a great reason to make batteries there. You do not need as much oven curing of the anode and cathode material in such a dry environment...
      BipDBo
      • 8 Months Ago
      If it is a net zero energy factory, then why does it need $8 million in discounted electricity rates for eight years? Because they hope too make it net zero in eight years. All those solar cells and wind mills are extremely expensive, so they won't be part of the original construction. All of the hoover dam energy is already allocated, so everything else out there is powered by coal, and so will this factory, for at least eight years. If volume and therefore revenue does not meet goals then more years. I applaud Elon's shrewdness in playing his hand to broker this deal, but I have concerns that there may be a backlash. That's an enormous discount, more than doubling the offer from the spend-happy California. No other business would get this large of a handout in proportion to its potential return. It will increase the number of jobs in the area, but likely most, particularly the higher paid positions, will be people immigrating from other states, mostly California rather than providing more jobs to current residents. I predict that quite a few people in Nevada will be a bit upset about this.
        Rotation
        • 8 Months Ago
        @BipDBo
        Net zero doesn't mean you aren't still buying electricity. It just means you sell some too. I'm net zero (more than actually) and I still buy electricity every night. And it likely won't be net zero anyway. I'm sure they'll do their best, but they need a lot of energy.
          DarylMc
          • 8 Months Ago
          @Rotation
          Hi Rotation The claim in the picture is net zero energy factory. It does make the $8 million for discounted electricity rates seem a bit odd unless they mean net zero costs to Tesla. Aside from that minor gripe it really is good news and I am sure the people in Nevada will be glad for the employment and economic boost. It's also very exciting news for EV's in general as I am sure it will cause other manufacturers to reassess their plans.
      BigNorm Jackson
      • 8 Months Ago
      Telsa's future is very bright.. Lol I need some of that stock
        goodoldgorr
        • 8 Months Ago
        @BigNorm Jackson
        It take just a little slowdown in sales for the company to experience heavy losses that's a dangeurous situation right now.
      bullitt2605
      • 8 Months Ago
      Seems like a big gamble to me.
        BipDBo
        • 8 Months Ago
        @bullitt2605
        Seems appropriate in Nevada.
        bullitt2605
        • 8 Months Ago
        @bullitt2605
        Sarcasm intended.
          BipDBo
          • 5 Months Ago
          @bullitt2605
          OIC, not a gamble for Tesla. I thought that you meant that it is a gamble for Nevada.
        Db
        • 8 Months Ago
        @bullitt2605
        Yes... setting up a new business venture always is. Welcome to the real world.
        BipDBo
        • 8 Months Ago
        @bullitt2605
        Seems appropriate in Nevada.
      Graham
      • 8 Months Ago
      I'm glad Tesla went shopping for better incentives, but what Nevada is giving them is ludicrous. And now all the Teslas that roll out of that factory will be tainted by Harry Reid.
        TurboFroggy
        • 8 Months Ago
        @Graham
        Yes they not doing a good job of keeping out Tesla like Rick Perry is doing by driving them away from Texas. Texas doesn't need 6500 new jobs and $100 Billion in economic development over the next 20 years, nope don't need it. Yes stay out of Texas Tesla, you are not welcome there. Well Texas legislature, how is that few $100K you got from the NADA looking now? Is it worth screwing your coffers and constituents out of $100 Billion in tax revenue? Yep, a bargain.
        Jesse Gurr
        • 8 Months Ago
        @Graham
        Well technically, Teslas won't be rolling out of there. Just battery packs.
        jeff
        • 8 Months Ago
        @Graham
        Really??? So they get billions spent in their state building the factory and create over 6,000 good paying jobs and what they mostly give up is taxes that they would not collect if Tesla went else where...... Seems like a great deal to anyone with a brain....
      Joe Liebig
      • 8 Months Ago
      What kind of a socialist government does this? Now politicians decide which company get's a discount on the taxes...
        jeff
        • 8 Months Ago
        @Joe Liebig
        Actually since the state volunteered the package from politicians that were voted in by the people, it is far closer to a capitalist deal than a socialist deal....
        hokkaido76
        • 8 Months Ago
        @Joe Liebig
        Nevada has a republican governor, so..............
        gpmp
        • 8 Months Ago
        @Joe Liebig
        "Now politicians decide which company get's a discount on the taxes" News flash: they always have.
      Pat
      • 8 Months Ago
      It looks like a James Bond evil super secret base!
      Tesla Fan
      • 8 Months Ago
      Every state that didnt buy will regret it. California is so dumb. Let the rEVolution begin
        JB
        • 5 Months Ago
        @Tesla Fan
        Tax free for 10 years? That's tough on the budget.
          archos
          • 5 Months Ago
          @JB
          Thats nothing. Our MALL got another 30 year tax-free extension on their mall (they built an addition), after the previous 30 exemption was set to expire. We got a Sachs 5th Ave now. Think about how much they'd make in taxes if Tesla didn't locate their compared to how much they did. The income from all those jobs and the businesses that will support them make this in incredible deal.
          purrpullberra
          • 5 Months Ago
          @JB
          Those taxes that aren't going to be paid because of the deal ALSO wouldn't be paid if Tesla DIDN'T come. There is no loss of business tax from Tesla to Nevada. The budget has NEVER had that money. It can't be tough on the budget. But there is the gain from all the salaries that workers will spend. And the property tax. The schools will be funded just fine from that new revenue. It won't be perfectly smooth but it is no loss to Nevadans in any way.
          Goaterguy
          • 5 Months Ago
          @JB
          You can't see it as "tax free for 10 years" but as potential growth and collection of taxes in 10 years. The states that didn't get the factory will be "tax free" forever because they will not receive a penny.
          jeff
          • 5 Months Ago
          @JB
          Really???? It is taxes that they would not collect anyway so they lose virtually nothing and gain much spending in their state and 6000 jobs....
          Kris Derentz
          • 5 Months Ago
          @JB
          Maybe tax free for 10 years for Tesla, but the 6,000 employees living in and consuming in Reno will now be paying sales tax, property tax, and various other costs. On top of that it will increase business for local area businesses, which in turn pay more taxes. Also they fail to mention but Nevada has No Corp Income tax already.
      Joeviocoe
      • 5 Months Ago
      The oil industry is very large because they consistently get large subsidies. ------------------------------------------- A 2009 study by the Environmental Law Institute assessed the size and structure of U.S. energy subsidies in 2002–08. The study estimated that subsidies to fossil fuel-based sources totaled about $72 billion over this period and subsidies to renewable fuel sources totaled $29 billion. The study did not assess subsidies supporting nuclear energy. The three largest fossil fuel subsidies were: Foreign tax credit ($15.3 billion) Credit for production of non-conventional fuels ($14.1 billion) Oil and Gas exploration and development expensing ($7.1 billion) The three largest renewable fuel subsidies were: Alcohol Credit for Fuel Excise Tax ($11.6 billion) Renewable Electricity Production Credit ($5.2 billion) Corn-Based Ethanol ($5.0 billion) http://www.eli.org/sites/default/files/eli-pubs/d19_07.pdf Autoblog Comments Enhancer (ACE) v1.0.0 - bit.ly/Autoblog_Comments
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