It looks like Tesla Motors Inc (NASDAQ:TSLA) will benefit from exemptions to environmental rules in California as an incentive to build their planned ‘Gigafactory’ there if recent remarks from California Senator Ted Gaines are any indication.
According to a report from The Los Angeles Times, Gaines was quoted as saying on the sidelines of a meeting with company representatives on Friday that Tesla Motors Inc (NASDAQ:TSLA) can speed up the process of building its massive battery factory if the state will relax a few rules for the company as part of an incentive package meant to entice the company to put up its facility in the state.
Gaines was quoted as saying that the company may get waived significant portions of the nearly 50-year-old California Environmental Quality Act (CEQA). CEQA requires state and local government agencies to analyze new projects in order to see possible environmental damages they might have and how these damages can be mitigated.
Aside from environmental laws being waived, which is alarming some environmentalists, California also is said to be offering Tesla Motors Inc (NASDAQ:TSLA) up to $500 million in tax breaks if the company does decide to build its battery factory in the state.
Tesla Motors Inc (NASDAQ:TSLA) has been planning to put up what it is calling its ‘Gigafactory’ to mass produce lithium-ion batteries for its cars. The facility, which will be built in partnership with Panasonic Corporation, is estimated to cost about $5 billion and will likely employ about 6,500 workers.
A number of states are competing for the new Tesla facility. However, it was said recently that Nevada and Texas are the front-runners in this bid to woo the car manufacturer. Other states that are trying to pursue the carmaker are New Mexico and Arizona.