Tesla Gigafactory Creates Jobs & Huge Monetary Benefits For Nevada

DEC 16 2018 BY EVANNEX 13


Back in 2014, when Tesla chose Nevada as the site for the unprecedented Gigafactory, the state sweetened the deal with a package of tax abatements worth some $1.3 billion. Naturally, the naysayers nattered about a “government giveaway,” but the incentives came with strings attached – Tesla promised to meet certain targets in terms of investment and jobs.

*This article comes to us courtesy of EVANNEX (which also makes aftermarket Tesla accessories). Authored by Charles Morris. The opinions expressed in these articles are not necessarily our own at InsideEVs.

Above: A look outside Tesla’s Gigafactory in Sparks, Nevada (Image: Tesla)

Now, two years after the Tesla Gigafactory opened, an economic impact report has found that Tesla has already met or exceeded most of the projected economic benefits, bringing more than 7,000 jobs and $6 billion in capital investment to the state.

“The promises made have been promises kept,” Derek Armstrong, Deputy Director of the Governor’s Office of Economic Development, which released the report, told the Las Vegas Review-Journal. “We’re extremely happy to see what they’ve done so far.”

Tesla Gigafactory 1, located east of Reno in Storey County, was originally projected to have 6,500 employees by 2018. According to the new report, the head count was 7,059 as of June 30. Ninety-three percent of these workers are from Nevada, and 4,247 are “qualified employees” who have been employed for at least three consecutive months and work for an average minimum of 30 hours per week. Average wages for the employees are $25.78 per hour, just a little short of the projected $27.35 – the only one of the targets listed in the report that Tesla has not yet reached.

Construction of the massive Tesla Gigafactory created 17,000 direct construction jobs and 7,900 indirect jobs in Washoe and Storey Counties between 2015 and 2018 – again surpassing projections. The report estimates the total economic impact of construction at $3.23 billion, $843 million higher than projected.

Above: Tesla’s Model 3 in the Gigafactory lobby (Image: Motor Trend)

As of June, Tesla had brought $6.05 billion in capital investment to the state, blowing past the projection of $4.95 billion.

According to the report, Tesla has “permanently changed the economic landscape of the area,” as its workers generate demand for housing, retail and other services, and other companies are inspired to open facilities in the area. The combined population of Storey, Washoe and Lyon counties grew by about 25,500 people between 2014 and 2017. Other tech companies such as Switch, jet.com and Blockchains have chosen to locate in the region, in part due to the “increased visibility that Tesla created, and the infrastructure investment the company has brought about,” according to the report.

“This really shows the economic diversification for Northern Nevada in that it’s moved from just being a service-based economy with a lot of reliance on the hotel and casino industry,” Armstrong said. “Now, we have an emerging advanced manufacturing component.”

Even when it comes to tax revenue, the Gig is turning out to be a big winner for the state. While Tesla itself will not pay personal property, real property or modified business taxes until 2024, and is excused from sales and use taxes until 2034, the new transportation and utility infrastructure, as well as employee spending, has generated plenty of new revenue from sales and property taxes. Gigafactory employees accounted for $57.7 million in total tax revenue in 2018. This figure was projected to be between $42.9 million and $81.8 million.

“This is an example of how incentive programs have been put to work and work really well,” Armstrong says, adding that he expects Tesla’s momentum to continue. “We’re a third of the way through the process. What they’re doing now is just going to get greater later.”


Sources: Las Vegas Review-JournalCleanTechnica

Categories: Tesla


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13 Comments on "Tesla Gigafactory Creates Jobs & Huge Monetary Benefits For Nevada"

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Did they create jobs or just shift most of them from one place to another?

Interesting question, the formation of Tesla as a new company has certainly created many new jobs, but also, has possibly resulted in the loss of a large number among the traditional car manufacturers.

It is true that Tesla has created automotive jobs while traditional automakers have been shedding jobs, but these may not be tightly connected. For example, GM is infamously shuttering five plants from Canada to Ohio — but Tesla is competing against premium offerings. Its’ vehicles are more often compared to BMW, Audi, and Mercedes vehicles than GM ones; so maybe the jobs being lost are European (not US) ones. Another factor is that while Tesla is certainly doing very well in the premium segment, it only produced about 100k units in 2017 — far fewer than GM, Ford, or Fiat-Chrysler.

Tesla also created non-automotive jobs, though — their vehicles are noted for having quite a lot of technology, and are often referred to ‘computers on wheels’. That technology, designing chips, writing software, etc — creates the need for tech sector jobs. The GF1 near Sparks has created construction-related jobs, with no sign that these have at the expense of other regions. I think a reasonable argument can be made that these jobs at Tesla represent genuine growth.

Tesla is creating US jobs and some of those jobs are coming at the expense of the German luxury makers which makes Jopp mad and explains his serial anti-Tesla bias here.

true, but in major part, that is due to too few legacy car makers and all of them, having inept CEOs.
This is why, come the next bail out, we should either let them go under, OR break them up.

GM is killing jobs in North America (Canada &USA) and shifting some to Mexico and probably China

GM is doing what it needs to do to remain profitable. Losing money and going bankrupt will cause more pain. How many companies would continue selling a product people aren’t buying and there losing money producing. GM will at some point build an EV that people want, but Tesla clearly has a head start. It doesn’t mean that GM will not get a good EV.

No, but since they decided to shift jobs to China ON OUR DOLLAR, it will be a COLD DAY before our family will EVER buy another GM/Buick/Etc.
And my mother’s side of the family helped build GM/Buick from back in the 20s through the 70s.

GO TESLA GO CREATE JOBS AND BOOST ECONOMY. Hopefully some coal miners in opioid ravaged states will apply and relocate to Nevada.

I have considered a job at the Gigia factory but the cost of living in that part of Nevada is sky high along with the real state prices also I would be far away from family and friends.

compared to what? it’s a heck of a lot less expensive than Palo Alto!

All its doing is making rent go up in reno where no body can afford to live no rent control in this state

Auto factory in California.
Battery factory in Nevada.
Solar factory in New York.

I wish they enter into tie up with other suppliers like Steel, Paint, Plastics and establish a factory in as many states as possible.
That way every state get some benefit from Tesla sales.