A billion reasons for Tesla Motors to pick Nevada


The state of Nevada offered Tesla Motors (NASDAQ:TSLA) $1B worth of benefits in the form of tax breaks and abatements spread out over 20 years in order to win the gigafactory, according to Governor Brian Sandoval.

Tesla CEO Elon Musk kept his statement simple, saying the gigafactory will allow for the mass production of EVs for decades to come.

What to watch: The gigafactory promise from Tesla is for 50GWh in annual production by 2020. That works out to a run rate of 500K Tesla cars.

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Comments (43)
  • surferbroadband
    , contributor
    Comments (4987) | Send Message
     
    Elon,

     

    See I told you in Austin you got friends in Texas, Nevada, New Mexico, Arizona etc..

     

    You got friends that are Elephants as well as Donkeys.
    4 Sep 2014, 09:14 PM Reply Like
  • neutralevil
    , contributor
    Comments (2) | Send Message
     
    With all the companies Texas has given breaks to, they missed the ball on this one. With Rainy Day Fund balance of $11.8 billion after bills paid. Texas should have done more to roll out the read carpet. This deal is huge and brings jobs for decades. I am not mad at Texas, just a little disappointed. Maybe the deal makers saw something they didn't like.

     

    Disclaimer: I hold no shares or interests in Tesla Motors (NASDAQ:TSLA)
    4 Sep 2014, 09:32 PM Reply Like
  • empirelite
    , contributor
    Comments (12) | Send Message
     
    Nevada has the richest lithium deposits in the country... I knew it would be nevada the moment talk about this gigafactory started several months ago.
    4 Sep 2014, 10:29 PM Reply Like
  • Locked Down Investments
    , contributor
    Comments (1543) | Send Message
     
    The Nevada site makes sense for the first gigafactory. Proximity to only lithium mine in USA, plenty of space to grow, good sources of solar/wind, and direct rail/highway access straight to the Tesla factory in Freemont, CA.
    We'll need around 200 giga factories worldwide to turn all new vehicles into EV's so the other states will get plenty of opportunities to bend over in future. This is just the beginning, and this is not even touching increasing battery demand for grid energy storage, portable electronics, two wheeled EV's, etc.
    Get into battery materials now people! Lithium, nickel, cobalt, graphite!
    Now that Tesla is starting construction other automakers will feel the pressure to secure their own battery supplies on a giga scale or risk losing the EV market for a decade.
    The tsunami is coming.
    4 Sep 2014, 11:36 PM Reply Like
  • chipdoctor
    , contributor
    Comments (2577) | Send Message
     
    neutralevil,

     

    You do know that Texas highly favors oil companies, don't you?
    5 Sep 2014, 01:01 PM Reply Like
  • Aricool
    , contributor
    Comments (6357) | Send Message
     
    actually a high profile University lab has demonstrated a pure Lithium anode in a working Li-ion cell. Usually, takes at least 3-10 years to go from lab to commercial scale product, if at all. If they could get it to market sooner, then graphite would be DOA, and Li supply would hit a crunch, Bolivia would be needed badly, and Tesla's Giga factory may be questionable if it is betting on the wrong technology... Until then, high Cg purity natural graphite is king!
    8 Sep 2014, 08:58 PM Reply Like
  • Frank Greenhalgh
    , contributor
    Comments (4159) | Send Message
     
    They aren't giving cash, just a tax break stretched out over 20 years! That's $300 million in tax breaks In 6 years.
    4 Sep 2014, 09:35 PM Reply Like
  • omcdac
    , contributor
    Comments (228) | Send Message
     
    You again very funny!
    5 Sep 2014, 03:28 AM Reply Like
  • omcdac
    , contributor
    Comments (228) | Send Message
     
    Frank- Your comments should be showing experience, knowledge but they are always funny.
    You lost your credibility forever.
    Now for god shake live with your APPLE share.
    You will never be able to buy TSLA.
    5 Sep 2014, 03:33 AM Reply Like
  • maggas
    , contributor
    Comments (473) | Send Message
     
    It seems to me this was factored into price, although shorts for some reason do not want to believe in such factory becoming a reality, or will find reasons to keep their same theme.manana, el ninos will be fried beans. oh my!in my old age, i am getting little senile. I do not know why I did not convert my 3000 shares into calls, so I can go to Mars on Elons next venture.
    4 Sep 2014, 09:38 PM Reply Like
  • rhyse12
    , contributor
    Comments (369) | Send Message
     
    I love the Muskeeters and their devotion to patron St Elon..

     

    Solar city sues the government for more money.
    SpaceX sues the government, because it promises it can save money.
    Nevada gives $1 billion plus in tax breaks to Tesla.

     

    How is this a different kind of company? Oh it is all in the name of the planet. Same wolf, different clothing. I don't mind the clothes, let's just be honest about the wolf hiding inside. Smart business move, but in the end it isn't about the green in your driveway. It is about the green in the wallet- the wallet of Musk.
    4 Sep 2014, 09:50 PM Reply Like
  • Kiwi_Guy
    , contributor
    Comments (264) | Send Message
     
    "I love the Muskeeters and their devotion to patron St Elon.."

     

    Here's the full press Tesla/Nevada conference on Thursday. From the standing ovations it looks like there are now a whole lot more "Musketeers" and devoted Musk fans, including most of the state of Nevada.

     

    http://bit.ly/1BfbAc8

     

    "It is about the green in the wallet- the wallet of Musk."

     

    If Musk was only interested in padding out his wallet, he would have cashed out his $22M or whatever from Zip2 at the age of 22 and bought a yacht, island and fast women etc. Instead he has created great disruptive products and thousands of jobs.

     

    The problem for cynics and bears is that he uses his exponentially increasing wealth and influence to take even larger audacious and breathtaking steps. He wants to make a real difference and leave a legacy, not "pad his wallet". Why would he work 100+ hours per week otherwise?
    5 Sep 2014, 12:27 AM Reply Like
  • King Rat
    , contributor
    Comments (1610) | Send Message
     
    Back in my day it wasn't like that. As an old-time Mac user, I had the computer praised by both Bill Clinton and Rush Limbaugh. Macs were the digital black and white cookie (another 90's reference).

     

    It is sad how polarized US society is today. The hypocritical left gives itself whiplash lambasting the 1% while praising Elon Musk for selling cars to the 1% while the hypocritical right as seen in Texas cuts off the nose to spite the face because they don't like Tesla's fans.

     

    Elio actually represents the car that Tesla should have been. Production through scrapping, it will be ecologically greener, have parts more American-sourced, and be a car for the masses at 1/10th the price of a Tesla.
    5 Sep 2014, 12:34 AM Reply Like
  • rhyse12
    , contributor
    Comments (369) | Send Message
     
    Exactly what great, disruptive products did He( i figure your all into capitalizing any reference to HIM) create?

     

    TESLA:

     

    Did MUSK invent the EV?
    I know he gets a nice piece of change to support his $85,000 toy. I can smell the TESLA altruism even across cyber space. Moved into Norway first- it has the largest government support for EV's. Where ever government money can support HIS efforts, the MUSK will surely go. Of course you probably get a rash that " Big Oil" gets some cash and tax breaks. IS it tough sitting on both sides of the fence? How do you dodge the splinters?

     

    The Battery in the EV? Did all those battery idle battery plants suddenly spring from the ground? It is old battery technology, spruced up and placed into a pretty vehicle. Wait, he packed more cells into the battery. Now that is innovation. Cram more stuff into the original casing.
    Rumor has it the vehicle model, all 35k produced, has a issues. I know the forecasts look rosy. SO does the accounting- but more on that later..

     

    Solar City, the company suing the government for more public money, was it the first solar power company? Or did he put some lipstick on that pre existing pig, and start calling it something else.

     

    SpaceX invented the rocket? Or are they one of a handful of private companies interested in putting payloads into orbit. I seem to recall some black and white pictures of men on the moon before He was born. Oh, he is also involved in a lawsuit vs the government there too. Au de la Altruism by ELON.

     

    Did I miss the construction of the hyper loop? I know "hyper drive" is a disruptive tech, it has gotten about as far as the hyper loop. Did spaceX propose the hyper drive?

     

    The greatest showmen, take a little science, pretty it up, and call it the latest and greatest. I see a lot of old science prettied up, add a dash of spice, and here we are today.

     

    to wit-
    NON-GAAP accounting- TESLA is killing it.
    GAAP accounting- Tesla is bleeding cash.

     

    I love imagination and creativity. But i despise imagination and creative accounting. For a guy involved in math and science, he has some interesting views on the math involving money..

     

    I don't know him, so i can't like or dislike him.
    But too often the latest and greatest, when backed by government money( all his ventures are getting kickbacks from the taxpayer) and playing it loose with accounting, have reversals of fortune. The government money dries up, and even with the lights turned out NON- Gaap accounting can't make money multiply.
    5 Sep 2014, 03:12 AM Reply Like
  • pvenkate
    , contributor
    Comments (1821) | Send Message
     
    @rhyse12: If Teslaphobic shorts think the stock is going where it is going because of its non-GAAP reports on current quarters or govt. subsidy it gets, they are such poor readers of the marketplace. Or is it because you think the Tesla bulls believe Musk invented all those things you mentioned in there?

     

    All I can feel is pure and unbridled jealousy for a man who seems to make so many things happen at the same time. You know - great EV's, great rockets and of course great batteries (none of which he invented, btw). Never mind the jobs he creates along the way. The only things that meets the eye are his showmanship, accounting trickery, tax incentives, etc - none of which are out of reach for every other auto majors..
    5 Sep 2014, 03:57 AM Reply Like
  • xamd
    , contributor
    Comments (886) | Send Message
     
    rhyse
    Mr. Musk is a billionaire. You think he really cares if he has 1 or 2 or 20 billion in his bank account? Lets take a simple question, would you rather die and have your epitaph read: I made 20 billion dollars and I didn't pay the government 5 billion (like some other billionaires) OR I pioneered electric cars which saved the planet from x billion tonnes of green house gases, pioneered a space program and helped get a solar company off the ground. Lets see its a tough question, A or B? Lets stop with this "Musk just wants to get rich" argument. There is no logic to it. He is rich. You can call me a Saint Musk follower if you want, but I prefer to think I am just stating the obvious.
    5 Sep 2014, 06:17 AM Reply Like
  • xamd
    , contributor
    Comments (886) | Send Message
     
    Kiwi guy
    hear hear. Well said. Better than mine. Thanks.
    5 Sep 2014, 06:19 AM Reply Like
  • tomfrompv
    , contributor
    Comments (6189) | Send Message
     
    The Legislature still has to approve. They face elections in November, so this will be interesting to see if Dems attack Repubs for aiding the rich or Repubs attack Dems for not wanting jobs.

     

    The big cash horde is probably the sellable tax credits. Tesla can sell them ASAP and use the cash to boost the balance sheet. The rest of the subsidies are stretched over years. Some are tied to headcount.
    4 Sep 2014, 10:13 PM Reply Like
  • doubleE
    , contributor
    Comments (4614) | Send Message
     
    This will pass through the legislature in like 30 seconds.
    4 Sep 2014, 11:11 PM Reply Like
  • afunnyone
    , contributor
    Comments (10) | Send Message
     
    No better way to speed up the development of the battery plant than for Tesla to raise cash for the plant by doing a secondary stock offering.

     

    What? Secondary stock offering? Did the longs forget that there are other reasons than a lack of demand that the stock might go down? That maybe, just maybe, their own fearless leader might bring about a 10% or 20% sell off in TSLA when a secondary is announced ? Follow that with a cyclical downturn in the economy, increased competition in the EV market, and lower than forecast demand for EV's by the general public and that makes for a very nice narrative for TSLA stock peaking in 2014.
    4 Sep 2014, 11:08 PM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4382) | Send Message
     
    What makes you think Tesla is going to do a secondary stock offering for the gigafactory? It looks to me like they have their ducks pretty much lined up in a row for the financing already. They may want a secondary in the future, but it won't be for this gigafactory.
    5 Sep 2014, 08:50 AM Reply Like
  • jyurow
    , contributor
    Comments (80) | Send Message
     
    Nevada was hard hit by mortgage defaults and the economic downturn. This should be a big boost!
    4 Sep 2014, 11:31 PM Reply Like
  • David at Imperial Beach
    , contributor
    Comments (4382) | Send Message
     
    Yep! This is a very big deal, even for a state like California or Texas. But in the small economy of Nevada, this becomes a significant percentage of the regional and state economy. Plus, it is not tied into their existing economy. It is a diversifying element.
    5 Sep 2014, 08:53 AM Reply Like
  • sethmcs
    , contributor
    Comments (3546) | Send Message
     
    The only electric vehicle I want is a golf cart. The lithium battery is never going to cut it without a significant advance. Electric cars need a 200 to 400 mile range on a single charge otherwise it is a waste of time. On the other hand if that advance becomes reality gasoline engines are on the way out.
    4 Sep 2014, 11:32 PM Reply Like
  • chopchop0
    , contributor
    Comments (5155) | Send Message
     
    Model S gets >200 miles per charge with the 85 kwh battery.
    5 Sep 2014, 12:07 AM Reply Like
  • berylrb
    , contributor
    Comments (2373) | Send Message
     
    @ seth, I had to re-read your post, to make sure you actually said 200 on a single charge? Er, ... that BEV is called a Model S.
    5 Sep 2014, 01:30 AM Reply Like
  • capt601
    , contributor
    Comments (2108) | Send Message
     
    Seth. Send your comment to GMcantinnovate@gm.com.
    You obviously no nada Regarding tesla.
    5 Sep 2014, 02:35 AM Reply Like
  • omcdac
    , contributor
    Comments (228) | Send Message
     
    How far you go with your gasoline car, 256-260 miles with one full tank ?
    Why you want TSLA to make a car for you which goes 400 miles.
    Why it is waste of time ?
    5 Sep 2014, 03:38 AM Reply Like
  • dnorm1234
    , contributor
    Comments (1111) | Send Message
     
    >that BEV is called a Model S

     

    That car is $100,000. That will hardly displace the ICE for 99% of the car-driving population.

     

    Yes, I know about the Model III. But until we see that building it is actually possible, I'll hold off on calling for the end of the gas car.
    5 Sep 2014, 11:03 AM Reply Like
  • Raster
    , contributor
    Comments (788) | Send Message
     
    Seth, the smallest tesla s battery pack IS 200 miles. The larger, close to 300. Gasolene engines ARE on the way out.
    5 Sep 2014, 12:06 AM Reply Like
  • texcritic
    , contributor
    Comments (75) | Send Message
     
    These ranges are based upon very careful driving. The moment you take advantage of Tesla's acceleration the range drops significantly. Same thing in a cold or hot climate requiring hear of ac. Just sayin.
    5 Sep 2014, 12:39 AM Reply Like
  • thatsamiam
    , contributor
    Comments (4) | Send Message
     
    I have driven a Model S 85 for 25,000 miles. I easily get over 200 miles of range...without "careful driving". (Pretty much I drive terribly as I have 4 speeding tickets already.) The EPA has standards for measuring the the range of the car that are applied evenly to all manufacturers. And the rated range is over 200 miles.

     

    Many people here comment about the car without having direct knowledge.

     

    Say what you want about valuation of the stock, even about the motives of Elon Musk or about what the future holds for the company. But, the car is a beautiful dream to drive. It is cheap to own, clean, quiet, fast, reliable and comfortable. These are objective statements that 100% of the people who I know own the car make as well as many others who have driven with me. I have easily driven from Vancouver B.C. to Portland, Oregon in that car.

     

    There is not a single day that I regret buying that car. I have not been to a gas station in about 20 months. Think about how much time and money you spent in gas stations the last 20 months. As for superchargers...I have needed to use them perhaps 10 times when I drive from Seattle to Oregon.

     

    I will never buy a car again that is not a Tesla.

     

    It is a mistake to make comments about the car that are obviously false. At best it is a mistake. At worst it is outright lying. Regardless it makes any statements you make not credible.

     

    I can respect many arguments against TSLA, but please stick to the facts.

     

    Just sayin.
    5 Sep 2014, 01:50 AM Reply Like
  • Dan Fichana
    , contributor
    Comments (1918) | Send Message
     
    Also have a Tesla;
    I reset my energy usage each season; well summer is up-
    4000 miles with AC running.

     

    Averaged exactly 300 Whr per mile.

     

    Was I tailing tractor trailers? Was I driving ultra conservative? Was I hyper miling

     

    Nope- driving like a normal car on the road with the AC on.
    5 Sep 2014, 04:16 AM Reply Like
  • chipdoctor
    , contributor
    Comments (2577) | Send Message
     
    thatsamiam,

     

    "Think about how much time and money you spent in gas stations the last 20 months. As for superchargers...I have needed to use them perhaps 10 times when I drive from Seattle to Oregon."

     

    I think you spent more time Supercharging the 10 times than the average 2X/month ICE driver did at the gas pump (unless they were in a Costco line in CA). And you do need to spend a minute every night to plug it in...(to be fair).
    5 Sep 2014, 01:09 PM Reply Like
  • evjohn
    , contributor
    Comments (1462) | Send Message
     
    Sethmcs,
    It is obvious you never owned an EV IMO. I own one and a 60 mile range works pretty good for me. A 200 mile car would BE NICE BUT NOT CRITICAL. our average RT is 40 miles and we live in the "country" miles from the nearest grocery store, etc. yes gasoline engines will be history sooner than later. Go test drive one, I dare you.
    5 Sep 2014, 12:53 AM Reply Like
  • capt601
    , contributor
    Comments (2108) | Send Message
     
    Yet a 200+ mile range allows you to completely rid yourself of ICE car.
    5 Sep 2014, 02:37 AM Reply Like
  • pot pie
    , contributor
    Comments (5713) | Send Message
     
    "Yet a 200+ mile range allows you to completely rid yourself of ICE car. "

     

    No it doesn't. Most who own just one car will not buy an EV. Petrol vehicles can do both, short and long distance and not have to worry about some plug being in the middle of no where and long charge times on a trip.

     

    EV's are half baked and a one trick pony. Nissan's loss leader Leaf gets sold because they're practically giving them away. Nissan is losing money on them.

     

    When they were $35,000, they sat there on the lot.

     

    The only ways EV's can sell is with massive subsidies.
    5 Sep 2014, 02:10 PM Reply Like
  • evjohn
    , contributor
    Comments (1462) | Send Message
     
    When lithium batteries with graphene in then triple the energy density of that TECKNOLOGY the ICE lowers won't know what hit them and the ICE car WILL become a museum piece. There is no turning back. Thank goodness for this silent revolution. I for one am getting tired of noisy, stinky, polluting diesel trucks and gasoline cars.
    5 Sep 2014, 12:59 AM Reply Like
  • xamd
    , contributor
    Comments (886) | Send Message
     
    evjohn
    and you don't even live in the city. I don't own a tesla, but sure wish there were more of them in my town. I definitely second your statement >

     

    I for one am getting tired of noisy, stinky, polluting diesel trucks and gasoline cars.

     

    Just the thought that there could be nice quiet non gas cars outside my apartment makes me wistful. And now when I am walking anyway, when I see anybody sitting in their car with the motor running waiting for their wife to finish the shopping or whatever, or just talking in the car with the motor running because its not their car, its the business car and they don't pay for the gasoline I feel like taking them by the neck and saying please get out of my neighborhood your gas is stinking it up and polluting it up. Oh, please please lets get these EVs rolling out on the assembly line. (PS, i don't even own a car I walk or take public transport)
    5 Sep 2014, 06:31 AM Reply Like
  • chipdoctor
    , contributor
    Comments (2577) | Send Message
     
    evjohn,

     

    Do you really think that the oil industry is just going to sit around and watch this happen?

     

    Also, I think its going to take some time to replace the 18 wheeler's diesel engine, especially with some of them already converted over to nat gas.
    5 Sep 2014, 01:14 PM Reply Like
  • Lhickey
    , contributor
    Comments (3) | Send Message
     
    According to the salespeople, using the heat or AC might reduce range by up to 40 miles, but that still leaves plenty of range. My father-in-law owns a Tesla. He just recently drove it from Chicago to Colorado Springs with his wife. He's 80 years old. Both he and his wife enjoyed the trip immensely. He even skipped a supercharger because he had so much range. He simply plugged into a standard outlet in a rented house when we were in Colorado. No problems, except for a speeding ticket on the way back.
    His only complaint is the car is so fast and so quiet that he has to use the cruise control to avoid unintentionally speeding.
    He's a snowbird and plans on driving it down to Florida for winter driving.
    He doesn't even have a charging port at his condo. He drives to the Tesla dealer about 6 miles from his house on the weekends, and has a cup of coffee while he gets a charge.
    He's had the car for about 9 months and couldn't be happier.
    He let a race car driving relative take it through its paces in Colorado, where he discovered the top end is 125 mph.
    The race car driving relative was impressed with it.
    5 Sep 2014, 01:23 AM Reply Like
  • Dan Fichana
    , contributor
    Comments (1918) | Send Message
     
    The range lose due to heat and AC has been greatly exaggerated.
    What I found with Tesla is that they tend to under promise and over deliver.
    That 4.2s 0-60 mph is on the high side, I have the P85, it's really 3.9 s 0-60 mph. The 265 mile range is also underestimated in my opinion.

     

    I've had it for 1.75 years now and regular summer driving I've averaged 300 whr per mile over 4,000 miles
    winter is like 310 whr per mile
    spring and fall are less- have to dig out my notes, but from what I remember it's around 280 whr per mile for both
    total lifetime, I've average less than 300 whr/mile

     

    So if you back calculate based on the battery size
    summer- 283 miles/ full charge
    winter - 274 miles/full charge
    spring/fall- 303 miles/full charge

     

    I don't baby it and go the speed of traffic, nor do I hypermile, nor do I tailgate tractor trailers (my paint is worth more than saving a dollar every thousand miles).
    6 Sep 2014, 11:37 AM Reply Like
  • litefun1
    , contributor
    Comments (38) | Send Message
     
    Finally I drove the car.
    A useful toy and what an acceleration and digital displays.
    Sold on it.
    6 Sep 2014, 12:56 AM Reply Like
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