Elon Musk Explains Why Tesla's Free Chunk Of Nevada Was No Handout

Tesla Motors CEO Elon Musk is "flattered" that people seem to think he swindled Nevada out of prime real estate for his Gigafactory, but he's written a post explaining why he thinks the state still comes out on top.

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Basically, he breaks down how he sees the deal working in the bigger picture.

"Of the $5 billion investment needed to bring the Gigafactory to full production in five years, state incentives will cover about 5%. Compared to the operational and upgrade costs over a 20 year period, expected to be approximately $100 billion, state incentives will constitute just over 1%. This makes sense: the $1.3 billion in incentives mostly consists of alleviating a few percent of annual property and use tax on a huge amount of equipment over the course of 20 years, an average of about $50 million per year after initial construction."

Read the rest of what he has to say on the Tesla Motors blog right here:

'The House Always Wins' –Elon Musk, Tesla Blog

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