Nevada’s Legislature discussed a possible $1.25 billion package of incentives for Tesla Motors Inc (NASDAQ:TSLA) on Wednesday, but couldn’t agree on the key points. The incentives package includes tax abatements for Tesla Motors Inc (NASDAQ:TSLA)’s $5 billion “Gigafactory” which is likely to create around 6,500 jobs in the state of Nevada and will give a good name to it in terms of the car business. According to Los Angeles Times, Nevada’s governor, Brian Sandoval is very excited about Tesla Motors Inc (NASDAQ:TSLA)’s new factory and announced that the new factory will bring $100 billion in revenue for Nevada in the next 20 years.
The incentives package will include massive tax abatements for Tesla Motors Inc (NASDAQ:TSLA) and an opportunity to bypass the car dealership network set by major car companies in the US. This will bring more sales for Tesla Motors Inc (NASDAQ:TSLA) but this matter can spark a stir as Tesla has faced resistance in trying to bypass car dealership networks in some other states.
There are multiple bills that will be presented during the assembly to discuss a special package for Tesla. As LA Times mentioned, Assembly Bill 1 gives energy discounts for Tesla Motors Inc (NASDAQ:TSLA). Assembly Bill 2 talks about bypassing franchised dealerships for car sales. Assembly Bill 3 talks about taking money from an insurance company to finance Tesla deal. The fourth bill is not labelled yet and it asks for tax abatements for Tesla Motors Inc (NASDAQ:TSLA) for the first 10 years of its Gigafactory.
Tesla Motors Inc (NASDAQ:TSLA) has promised direct benefits for Nevada in exchange for its Gigafactory. Among other things, the company has promised a direct investment of $37.5 million in local schools. The source added that the Gigafactory will deplete the film production business in the area as there will be a slash in film tax credit.
Daniel Benton‘s Andor Capital Management is one of the shareholders of Tesla Motors Inc (NASDAQ:TSLA), having 1.25 million shares of the company.