9/12/2014

Nevada Grants Tesla $1.3 Billion Tax Break, Right to Sell Cars Direct

Facebook Share Icon LinkedIn Share Icon Twitter Share Icon Share by EMail icon Print Icon

Nevada's legislature has agreed to give Tesla Motors Inc. tax breaks worth $1.3 billion in exchange for building a $5 billion electric-car battery factory near Reno, Bloomberg News reports.

Share

Facebook Share Icon LinkedIn Share Icon Twitter Share Icon Share by EMail icon Print Icon

Nevada's legislature has agreed to give Tesla Motors Inc. tax breaks worth $1.3 billion in exchange for building a $5 billion electric-car battery factory near Reno, Bloomberg News reports.

The package excuses the facility from paying business taxes for 10 years and sales taxes for 20 years. The state estimates the plant, projected to eventually employ 6,500 people, will generate about $102 billion in economic activity over 20 years.

The Nevada lawmakers also voted to allow Tesla to sell cars directly to customers by exempting it from a state law requiring such sales to occur through dealerships.

The company has now gained the right to bypass the usual dealer franchise system in at least 11 states, according to Automotive News. It says about eight states either permit Tesla to operate at least one factory outlet or haven't ruled on doing so.