Tesla Pressured To Create Jobs At Solar Gigafactory

AUG 15 2018 BY VANJA KLJAIC 26

Tesla needs to provide 1,460 jobs to Buffalo, NY within the next two years

When the Tesla Gigafactory 2 was dubbed completed this April, by both the company and state officials, a countdown timer started for the U.S carmaker. Tesla needs to provide 1,460 jobs in Buffalo, NY within the next two years, as part of an agreement with the local state officials. In an event of failure to complete such a task, the company may be faced with fines of up to  $41.2 million for every year that it does not meet this employment goal.

While the Gigafactory 1 is predominantly slated for vehicle production, the Gigafactory 2 is more oriented to the production of solar products the company makes. This is where the company needs to create the jobs in order to avoid hefty fines. These are part of a deal that allowed Tesla to receive $750 million in state support in order to build and equip the solar factory. Tesla committed to creating 5,000 jobs in the state of New York within the next ten years.

All of this is part of a deal that clearly evolved over the years. When Tesla took over SolarCity, they also inherited the original agreement’s requirements. This consisted of a requirement to provide 1,460 jobs at the solar factory and another 1,440 jobs at suppliers and service providers in the Buffalo region. Thus, the target for SolarCity was 2,900 locally. But, when Tesla took over, those requirements changed.

The moment the company took over, the requirement of 1,440 suppliers was waved by the state. The revisions called for Tesla to create 1,460 jobs in Buffalo within two years after the factory’s completion. Additionally, Tesla is obligated to bring an additional 500 manufacturing jobs at the Gigafactory 2. According to a statement published by The Buffalo News, Tesla officials declared that the company has already surpassed the first employment goal – the one necessitating creating 500 jobs by April 2019. Now, Tesla is brought against a target that is double that by the state’s April 2020 deadline.

For the company, the energy business is slated to grow even bigger than the current electric car business. This was most notably emphasized by Elon Musk when he addressed the shareholders in the company’s second-quarter earnings call earlier this year. The Buffalo, NY plant is going to be a big part of that plan in the future. If Tesla can meet the job requirements. Which we can be certain it will.

Source: Teslarati

Categories: Tesla

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26 Comments on "Tesla Pressured To Create Jobs At Solar Gigafactory"

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Will

I’if you can’t reach it just close shop and contract the solar business out.

ffbj

You probably should use a file photo of the giga-factory 2:
https://www.teslarati.com/tesla-gigafactory-2-job-creation-buffalo-ny/

Magnus H

That DOES look more like New York, yes.

Pushmi-Pullyu

Thank you! I find it odd to see IEVs using a photo of Gigafactory 1 for the teaser to an article about Gigafactory 2.

Upload error. Fixed. Sorry!

Ambiguous

That looks more like a house than a Gigafactory.

Ambiguous

Now it looks like a Gigafactory.

+1

Billy G

if they come close to that deadline, they could use the buffalo giga for training all the electricians that musk alluded to on the last earnings call

BoltEV (was SparkEV)

What happens if Tesla solar product business is low that it cannot hire so many? Make deal with the devil and the devil cashes in to the tune of $41M/yr.

Vexar

I can see them spinning up battery manufacturing here to accommodate Tesla Energy contracts.

Windbourne

not battery. That makes little sense.
The Semi truck assembly needs to be started.
This would be a good place to add it. Ship the drive train, wiring harness, and cockpit there and pick up steel and truck parts (brakes, etc) from the local area to make the trucks with.

They can then ship the trucks via the great lakes.

SJC

For 40 years boards have fired people taking jobs where labor is cheap.
This was the trend we saw in the 70s, we did nothing to change that.

gagaga
Ambiguous

So far it’s just vaporware, unfortunately. 🙁

Pushmi-Pullyu

I don’t see a serious problem here. If Tesla can’t sell enough solar panels to keep workers busy, they can just shift some of the parts manufacturing and/or sub-assembly work from the overcrowded Fremont Assembly plant to Buffalo. Of course that will make the logistics of auto assembly harder, but better that than having workers being paid to do nothing!

Ambiguous

Pu-Pu said: “I don’t see a serious problem here…”

Perhaps you should take off your Tesla fanboy goggles 🤓 and have another look 😳.

Bunny

That’s like a 2,600 mile trip. That would have my interest!

Windbourne

good thinking, but wrong line.
The Semi truck requires a LOT of manual work until they get production way up. Then it will make sense to add an automated line. So for now, putting the semi truck and perhaps even the roadster here, really makes good sense.

Ron M

Is someone actually concerned that Tesla can’t add 1,000 jobs to Buffalo in 20 months that’s crazy. Once minor problems are completely worked out those solar roofs will be leaving the factory to be installed on thousands of new and existing homes. There’s a lot of pent up demand for the solar roof and powerwall so it’s not a demand problem there making sure the product is of the best quality.

ModernMarvelFan

The bailout of the SCTY continues to drag on TSLA…

Vexar

I think the move to their solar roof tiles was smart. Solar cells are commodity items not competitive against Chinese factories without Trump-tariff strategies.
At some point, do any of us really doubt that Tesla isn’t paying attention to their state contract obligations?
To your point, they aren’t selling solar panels like they used to.

Windbourne

California requires adding solar. Sadly, CA did it poorly, but, this will help Tesla .

Scott Franco

Thanks, the picture is much better.

Nix

So the news is that like nearly every single company that has a contract with any state anywhere in the US, that Tesla has a tiered penalty clause? And that Tesla “already surpassed the first employment goal – the one necessitating creating 500 jobs by April 2019. Now, Tesla is brought against a target that is double that by the state’s April 2020 deadline.”

This is a “water is wet” news story. Every company who agrees to a deal to get tax incentives in exchange for employment is “under the gun”. I’m not sure what the news is? That Tesla has already surpassed targets for April 2019, so everybody should be Concerned! about them hitting a goal in 2020?

Windbourne

You know, that might be a great place to build the Semi at.
Seriously, the building is already done. The Semi can be flat-pack shipped and assembled there.
It would also give them access to more ppl with manufacturing experience. There are plenty of autoworkers up in that area that would move to grab a decent job.