CARSON CITY – According to a new economic impact summary released by the Nevada Governor’s Office of Economic Development (GOED), through June 30, 2018, there are 7,059 people employed at Tesla’s Gigafactory 1 at an average wage of $25.78 per hour, an annual payroll of $378.6 million, and an estimated annual output impact of $2.2 billion.
An additional 8,200 jobs and $466.3 million in annual payroll are supported at other local businesses thanks to the massive project investment by Tesla and its partner Panasonic, which has seen $6 billion in capital investment. Its construction employed 17,150 direct and 7,938 indirect jobs with a one-time economic impact of $3.2 billion between 2014 and June 30, 2018.
Nevada officials are thrilled with the performance, which significantly exceeds forecasts included in the original 2014 economic impact summary and the SB1 incentive legislation.
“I’m incredibly pleased that Tesla, Panasonic and their Gigafactory partners have not only kept, but exceeded their promises to Nevada. In just four years, this world-class facility is disrupting the automotive and energy industries and it’s being done here in the Silver State,” said Governor Brian Sandoval. “That fact has had an extraordinary effect on perceptions about Nevada and what is possible here in a way that is difficult to quantify beyond these remarkable numbers.”
“While the Gigafactory effect has been evident for all to see, we wanted to confirm the performance with hard numbers,” said GOED Executive Director Paul Anderson. “Measured against the forecasts, the incentive milestones, and what it’s meant to the thousands who have jobs thanks to this investment, this is a really special success story. The promises Tesla made have been promises kept.”
According to the study, the number of direct jobs created by Gigafactory 1 has increased manufacturing employment in the Reno metro area by 55 percent since 2014.
Although Tesla does not generate sales, property or MBT taxes in the short term, the project has resulted in significant new transportation and utility infrastructure, as well as employee spending that generates sales and property taxes at the full unabated rate generating $57.7 million in 2018.
Furthermore, investing in attracting this high‐profile company to Northern Nevada has successfully seeded significant additional economic development activity locally and throughout the region.
In addition to exceeding the performance forecasts from 2014, the project surpassed the capital investment requirements of $3.5 billion needed to qualify for transferable tax credits (TTCs) by $2.5 billion and has nearly met its cap for job-related TTCs. The tax abatements for real and personal property tax and modified business tax are set to expire June 30, 2024 and the sales tax abatement expires June 30, 2034.
Full Tesla Gigafactory Economic Impact Summary 2015-2018is available here, http://bit.ly/2Eg5T94.
About the Governor’s Office of Economic Development
Created during the 2011 session of the Nevada Legislature, the Governor’s Office of Economic Development is the result of a collaborative effort between the Nevada Legislature and Governor Brian Sandoval to restructure economic development in the state. GOED’s role is to promote a robust, diversified and prosperous economy in Nevada, to stimulate business expansion and retention, encourage entrepreneurial enterprise, attract new businesses and facilitate community development. More information on the Governor’s Office of Economic Development can be viewed at www.diversifynevada.com.
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