Tesla gets tax benefits worth over $330 million from Nevada
Tesla is getting ready to spend more than $3.6 billion to build its Gigafactory complex in the state. Electric vehicle manufacturer Tesla is expected to get over $330 million in tax benefits from Nevada.
Two new facilities will be built as part of the expansion plans, one of which will build the new 4680 battery cell and the other will focus on the long-awaited mass production of the Tesla semi-electric truck.
Tesla claims that the production of 4680 battery cells will be a crucial step in the company’s strategy to reduce manufacturing costs in half and boost battery output by approximately 100 times by 2030.
The main part of the plant, the 4680 cell, is expected to be able to make batteries for two million light-duty vehicles every year.
Tesla will be obliged to establish at least 3,000 jobs with an average hourly wage of $33.49.
This is a requirement of the deal with the Nevada Governor’s Office of Economic Development (GOED) board. Nevada has given Tesla tax breaks in the past. In 2014, the state gave Tesla incentives and tax breaks totalling $1.3 billion.
Tesla’s development in Nevada is a step ahead in the company’s attempts to lead the industry, given the increasing demand for electric vehicles and the need for sustainable energy solutions.
With the new buildings, Tesla will be able to make more batteries, reach its ambitious goals, and create more jobs in the area.
Tesla’s master plan for Mexico
Tesla CEO Elon Musk announced plans to build a new gigafactory in Nuevo Leon, Mexico, during an Investor Day session in Austin, Texas.
The plant, which will cost more than $5 billion to build, will increase Tesla’s global output and will be supplemental to the output of all the other factories.
Musk did not disclose how many vehicles the factory would produce annually.
But the aim remains to scale up production at the plant. The electric vehicle maker is also exploring constructing batteries in the country’s heartland as it seeks additional investment.
Additionally, Tesla plans to cut assembly costs by half in future generations of cars and is working to debut an affordable electric vehicle.
The goal for Tesla remains to double its output to 20 million vehicles annually by 2030.