How is that first special session gift — the one for Tesla — turning out?

Tesla gigafactory (R-J photo)

Tesla gigafactory (R-J photo)

There have been three special legislative sessions in three years in Nevada specifically to dole out generous gifts to billionaires based on base assumptions that those gifts might someday prove beneficial to the economy of the state and generate more tax revenue than the handout.

You know the gifts — tax breaks and abatements and roadwork and land for a Tesla Motors battery factory near Sparks, tax breaks and infrastructure for a planned electric car plant for Faraday Future in Clark County and now $750 million in tax money to build a football stadium for casino and newspaper owner Sheldon Adelson and the NFL Raiders.

So, how’s that first handout working out?

Montana Skeptic at Seeking Alpha reports that Nevada is getting the shaft.

As of the latest report in late August, even with generous amortization allowances, the 272 jobs created by the so called gigafactory have cost Nevada $179,000 each.

Tesla has said the $5 billion, 10 million-square-foot factory eventually will employ 6,500 workers and add $100 billion to the state economy over the next 20 years.

There were supposed to be 700 full-time jobs in 2015 instead of 272 and 1,700 this year instead of only 419 so far. For 2017 the prediction is 4,700 jobs, reaching that pie in the sky 6,500 in 2018.

Capital expenditures by Tesla also have fallen well short of projections.

The plant is supposed to be 10 million square feet in size, but now is less than 2 million.

8 comments on “How is that first special session gift — the one for Tesla — turning out?

  1. VernonClayson says:

    Sounds similar to Harry Reid’s pipedreams of green energy, solar panels and windmills,I’m guessing he was in on this farce.

  2. Steve says:

    Those predictions were based on $150.00 bbl oil.
    With oil (and natural gas) now locked into a narrow price range ($30 to $60 a barrel for oil) the two electric car handouts will take far longer to realize. If ever, in our lifetime.
    Renewables are a lousy gamble and a worse investment.
    Unless you like to feel good about losing your money.

  3. VernonClayson says:

    After looking at the photograph I’m guessing a larger percentage of the 272 employees are janitorial and grounds maintenance workers than production workers, discount the white collar types and there’s only a few lonely production workers. Sounds somewhat like government workplaces.

  4. bc says:

    Are they actually in production?

  5. Tesla picketed the Faraday special session because the Assembly actually was voting to put Faraday in competition for tax dollars. All of these are unconstitutional and nothing is challenged. This current assembly with some exceptions is totally corrupted by the lobbyists for the unions and the casino industries. I am not saying this because I lost to Chris Edwards but because this is why I ran against Edwards who voted for Faraday and now for the stadium. Any on who voted in favor of any of this can call themselves conservative. Tesla is totally financed either through state government or federal government subsidies. The free market should determine what businesses survive and what businesses fail. If the subsidies to Tesla were pulled they would be closing their doors immediately.

  6. No, they say production is to begin late this year. All thery’ve produced so far is press releases. http://www.reviewjournal.com/business/economic-development/tesla-gigafactory-expected-produce-batteries-late-year

  7. Well we will see won’t we. And if they produce how will actual sales be? The market will determine their fate. Every time the governor gets to ride in a new toy he wants it, like a five year old. Amazing isn’t it.

  8. VernonClayson says:

    Then the ratio of janitorial/maintenance and white collar workers to production workers is worse than I thought; being there’s no production workers, there’s just the nervous insecure white collar workers and maintenance/janitorial workers wondering when the power will go off and the AVAILABLE signs will go up on the fence.

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