TESLA RISKS LOSING $750 MILLION PACKAGE IF IT MISSES JOBS TARGET AT NEW YORK GIGAFACTORY: REPORT

The Daily Caller | 8/3/2018 | Staff
elio25 (Posted by) Level 3
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Tesla is reportedly at risk of missing jobs targets at its New York state Gigafactory 2 and paying tens of millions of dollars in fines, a former Tesla executive said.

New York agreed to invest $750 million into building the Tesla factory to produce solar cells and batteries. In return, Tesla agreed to bring 500 jobs to the state by the end of April 2019, 1,460 jobs with 500 of those in manufacturing by April 2020 and 5,000 jobs within a decade of the plant’s completion, according to Reuters and Greentech Media.

Tesla - Facility - New - York - Year

Tesla would rent the facility from New York for $2 a year plus utilities, according to Greentech Media, citing a Securities and Exchange Commission filing. If Tesla fails to hold up its end of the bargain, it will pay an annual penalty of $41.2 million until it hits the agreed-upon target.

Tesla told Greentech Media the company already met its 2019 target, but others are expressing concern about how the company will sustain itself.

Jobs - Target

“At best, [meeting the jobs target] will be challenging for them,” a...
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