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As he shared the stage with Tesla (Nasdaq: TSLA) Chairman & CEO Elon Musk, Nevada Governor Brian Sandoval announced that Nevada was “determined to be a part of moving our country and global economy forward.”
Elon Musk called Nevada a “get things done state.”
They were, of course, talking about the deal between the State of Nevada and Tesla Motors to locate Tesla’s lithium-ion battery ‘gigafactory’ in Nevada.
Musk and his Tesla team have been on the hunt for a state willing to house Tesla’s massive battery factory. The company was rumored to be choosing between a Nevada gigafactory and a California gigafactory when it came down to the wire, though Texas, New Mexico and Arizona were also in the running.
Most likely the final decision came down to the tax incentives being offered by the states.
The final deal is eye popping. Here is a close look at the numbers:
$5,000,000,000 – The amount Tesla is expected to spend on the Nevada gigafactory.
$1,900,000,000 – The “total fiscal impact” to Nevada’s economy provided by the Tesla gigafactory, as calculated by the State of Nevada.
500,000 – The number of cars that could be powered by the batteries produced at the gigafactory when it comes online in 2020.
240,000 – The number of cars Tesla is forecasted to sell in 2020.
5,000,000 – The number of square feet the factory is expected to cover.
10 – The number of years that Tesla will operate tax-free in the State of Nevada, at which point the property tax abatement will expire.
20 – The number of years that Tesla will operate without paying sales taxes to the State of Nevada.
$3,500,000,000 – The amount Tesla is required to invest in manufacturing and other items in Nevada.
6,500 – The number of workers to be employed at the factory.
3,000 – The number of construction jobs created by the gigafactory.
16,000 – The total number of jobs expected to be created, including the factory and construction jobs above.
$25 – The minimum wage of employees at Tesla’s Nevada gigafactory.
$1,000,000 – The amount Tesla is expected to give the University of Nevada Las Vegas for advanced battery research.
$37,500,000 – The amount Tesla is to contribute to a K-12 education fund beginning in 2018.
If approved by Nevada’s legislature, the deal would become the 10th largest tax-incentive deal struck between a U.S. state and a major company. The largest, of course, is the $8.7 billion deal between Boeing (NYSE: BA) and the State of Washington.
If all goes as planned, the Nevada gigafactory will be a big boost to Nevada’s economy and an integral part of Musk & Tesla’s efforts to completely disrupt the automobile industry.
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