Tesla Motors Inc (TSLA): Sen. Ted Gaines Confident In ‘Gigafactory’ Win


Tesla Motors Inc (NASDAQ:TSLA) has a lot of incentives to put up its “Gigafactory” in California and Senator Ted Gaines is “very confident” in his state’s chances of beating other states which are also pursuing the electric car maker.

The remarks were made by the senator in an interview on CNBC and come after he reportedly said that California may give Tesla Motors Inc (NASDAQ:TSLA) an exemption on environmental rules mandated by the California Environmental Quality Act (CEQA) in order for the company to quickly build its massive battery manufacturing facility.

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Gaines was first asked in the interview why they in California are planning to give Tesla Motors Inc (NASDAQ:TSLA) exemptions to the CEQA as well as huge tax incentives when the company has said that it has not asked any states to “bend the laws” in their negotiations.

“We want to be competitive. Texas is in the game. Nevada is in the game. We have got to remember that Tesla was founded in the state of California and we want to fight for 6,500 jobs and a $5 billion investment,” Gaines explained.

When asked about what the cost of these perks for Tesla Motors Inc (NASDAQ:TSLA) will be for the state, the senator said that they who are negotiating with the company is familiar with this type of transaction. He noted that they just also offered Lockheed Martin Corporation (NYSE:LMT) a $420-million deal. He added that people also need to understand that having this facility in California will have a multiplier effect which will definitely benefit the state’s treasury.

Moreover, Gaines said that California has an edge over Nevada, also perceived as one of the top states in the race to woo Tesla Motors Inc (NASDAQ:TSLA), because California’s legislature is now in session.

“Nevada is not even in session, their legislature is not. And they have to pull some sort of package together. We are in session. We are ready to go. we are putting the final touches on our bill package […] We are working very diligently,” he said.

Furthermore, he added that he is “very confident” about the company agreeing to build its ‘Gigafactory’ in California.

Disclosure: None

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