Las Vegas Sun

March 28, 2024

Economic report says Tesla to generate $1.9 billion in new taxes for state

Tesla

Paul Sakuma / AP

This June 22, 2012, photo shows a Tesla Model S electric sedan outside the Tesla factory in Fremont, Calif.

Updated Tuesday, Sept. 9, 2014 | 4:39 p.m.

Even with its $1.3 billion in state tax incentives, Tesla Motors could generate $1.24 billion to $1.95 billion in new direct and indirect tax revenues in Nevada, over the next 20 years, according to a state-commissioned report released today.

The $1.9 billion impact includes Tesla's factory, its employees and the businesses that serve them.

In total economic impact, the report estimates that Tesla's operations will create between $52.9 and $96.9 billion over the next 20 years.

The analysis, performed by Applied Economics of Phoenix, was released a day before lawmakers will consider the deal with Tesla in a rare special session.

Tesla plans to build its 5.5 million-square-foot “gigafactory” to make batteries for its electric cars in Storey County near Reno.

Here are other highlights from the report:

- Tesla’s arrival would create 6,500 permanent jobs ranging from assemblers, operators and engineers to supervisors and executives. The average wage would be $27.35 per hour.

- The site would be built in four phases. The first phase would create 700 jobs in 2015. The second phase would add 1,000 more jobs in 2016. Another 3,000 jobs would be added in 2017, with the remaining 1,800 jobs starting in 2018.

- Spending by Tesla and its employees would indirectly support 16,200 more jobs and $955 million in income per year with suppliers, banks, grocery stores and other businesses that serve Tesla and its workers.

- Sales tax and property tax revenue generated by Tesla's employees would produce $42.6 million per year for local and state governments. Another $38.8 million in tax revenue would come from jobs indirectly supported by the Tesla expansion. Together that’s $81.4 million per year, or $1.2 billion over the 20 year deal.

- Construction would create 9,000 direct jobs over three years. Construction would create a one-time economic impact of $2.4 billion.

- The Gigafactory would boost the Northern Nevada’s gross domestic product by about 26 percent.

Join the Discussion:

Check this out for a full explanation of our conversion to the LiveFyre commenting system and instructions on how to sign up for an account.

Full comments policy