Tesla Gigafactory

Tesla Gigafactory

Regardless of Tesla's recent inability to reach production goals, the automaker is still on track for hiring and tax incentive goals in Nevada.

Back in 2014, Nevada promised the Silicon Valley automaker some $1.25 billion in tax breaks, which would materialize as long as specified benchmarks were met. One of which was a $3.5 billion capital investment toward the state's economy by 2024. It's only been three years, and Tesla has another seven to make good on the deal, however, it has already invested nearly $2.7 billion toward the goal.

Tesla Model X at the Gigafactory

Tesla Model X at the Gigafactory

Mari St. Martin, spokeswoman for Nevada's Gov. Brian Sandoval explained:

“Tesla has met all of its benchmarks and exceeded the state’s goals. The company is a strong community partner and is a cornerstone of the new Nevada economy. Tesla’s incentives are performance-based, and the governor is confident in its ability to deliver.”

The deal with the state of Nevada is directly related to the automaker's mammoth lithium-ion battery factory known as the Tesla Gigafactory.  The Gigafactory is located in Sparks, near Reno. The $5 billion project is a partnership with Panasonic.

The Gigafactory is in the midst of, what seems to be, perpetual construction, with a goal of expanding to some 10 million square feet or more. It currently employs about 1,400 full-time employees. In the original 2014 agreement, Tesla told the state of Nevada that it would need some 6,500 workers by 2024.

Nevada has given Tesla $114 million in tax credits, thus far. As long as the parameters are met by 2024, the automaker is guaranteed the rest of the money. If the company can't achieve the goals, it will have to reimburse Nevada for any tax credits that have already been dispursed.

Source: Las Vegas Review-Journal