How’s that Tesla Motors tax giveaway working out?
Projections were for the battery gigafactory near Sparks to be employing 1,700 workers by the end of 2016, but the latest progress report shows there are only 477, even though the state has shelled out $59 million in transferable tax credits.
As Montana Skeptic at Seeking Alpha notes, add in the $43 million the state paid of the land for Tesla and that works out to $214,000 per job.
Is there any way Tesla will employ 4,700 at the factory by the end of this year and 6,500 by the end of 2018?
In a special session in 2014 the Nevada Legislature handed Tesla $1.3 billion in tax breaks and credits in return for the company promising to build a $5 billion, 10 million-square-foot battery factory. Its capital expenditures so for amount to $1.1 billion, well short of the projected $3 billion.
Since the company has almost no tax liability in Nevada those tax credits can to sold, presumably at a discount, to companies who owe taxes. Tesla already has sold $20 million in tax credits to MGM.