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Tesla Gigafactory coming to Reno, Nevada with $1.2 billion in tax incentives

You want details on the Gigafactory? You got 'em. At least the preliminary ones. At an event with Nevada Governor Brian Sandoval this afternoon, Tesla Motors announced that its first Gigafactory will be built outside Reno. As was leaked yesterday and confirmed by unnamed state officials today, the plant will be where Tesla will make a big statement not only about EVs but also the power of Nevada to further that particular fight. The incentive package is worth $1.2 billion over 20 years. Tesla CEO Elon Musk, speaking in Carson City, said that Nevada did not offer the biggest incentive package, but that, "This is not just about the incentives. [Nevada is a] really get things done state. That was a really important part of the decision," according to the Reno Gazette-Journal. That said, the incentive package is still more than twice what Musk originally said would be needed. The state worked out a deal with the automaker that will be wordh $1.2 billion over 20 years and should basically let Tesla operate tax-free for ten years, the RGJ reports. That will not surprise some people. The RGJ breaks down the numbers this way: $725 million for a 20-year 100 percent sales tax abatement $332 million for a 10-year 100 percent property tax abatement $120 million in transferable tax credits $75 million in transferable tax credits worth $12,500 per job times 6,000 jobs). $27 million for a 10-year, 100 percent modified business tax abatement $8 million in discounted electricity rates for eight years The Gigafactory is Tesla's answer to the question of how it will be able to make a $35,000 EV that will be able to over 200 miles on a charge. Tesla CEO Elon Musk has said that a 30-percent decrease in cost for the batteries is "probably conservative at this point." The Reno Gigafactory could be in operation by late 2016. Tesla is partnering with Panasonic on the plant. The governor thanked Senator Harry Reid, who he said played an important role. Whether the Reno announcement is the first of many remains to be seen. For now, the other states that wanted the plant, like California and Arizona, remain hopeful. Tesla's official statement and a short local news report on yesterday's rumors are available below. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Toyota takes aim at Musk's criticism of hydrogen 'fool cells'

Tesla's Elon Musk has called hydrogen fuel cell cars "a load of rubbish" and "fool cells," and he's nowhere near alone in his disdain for the technology. Toyota has been fighting back waves of condescension for years now, and did so again when Senior VP Bob Carter took the stage at the recent J.D. Power Automotive Summit this month. His target was comments that Musk made at the Automotive News World Congress at the Detroit Auto Show, when Musk said an FCEV was an "extremely silly way" to store energy, that "the best-case hydrogen fuel cell doesn't win against the current-case battery" and that hydrogen's failings will become obvious in the next few years. Carter's response was that the fuel cell initiative isn't about the next few years. "This is not a 24-to-36-month play, but when you start looking into the 2020s," then you can see the necessity of hydrogen fuel cells, which Toyota considers an extension of EV technology, he said. The Toyota Mirai will begin its defense of the FCEV industry in the US later this year. The Hyundai Tucson Fuel Cell is already available in California and Honda's hydrogen car will arrive in 2016. Until then, we can let some more of Carter's words ring in our ears: "If I was in a position where I had all my eggs in one basket," he said of Musk's BEV-only focus, "I would perhaps be making those same comments." News Source: Automotive News - sub. req. Green Tesla Toyota Electric Future Vehicles Hydrogen Cars toyota mirai fcev bob carter

Tesla delivers 7,579 Model S EVs in Q2, maybe picks Reno, NV for Gigafactory

When it comes to describing its situation, not even Bob Ross could paint a prettier picture than Tesla Motors. The California automaker has had a good few months and announced today that it delivered 7,579 Model S EVs in the second quarter of 2014. That's the most the company has ever delivered in a three-month period, reflecting an expanded market that now spans new countries in Asia and Europe. Tesla also built 8,763 vehicles in that time frame, another record, thanks to getting more cells from battery supplier Panasonic, and says it remains "on track for more than 35,000 deliveries in 2014." Alongside the earlier announcement about the official Gigafactory announcement with Panasonic, the automaker also said today that it has broken ground on a "potential" location in Reno, NV, – validating earlier speculation – while it is still looking at locations in Arizona, California, New Mexico and Texas. Work at the site has mostly stopped for now, however, as the company doesn't want to begin pouring cement until state incentives are in place and a "compelling deal for all parties" has been struck. The ball in Nevada, according to CEO Elon Musk, is now in the hands of the state's governor and legislature. The 7,579 vehicles delivered last quarter continue an upward-moving trend line. In all of 2012, Tesla sold 2,650 Model S EVs. For 2013, the company delivered 4,900 vehicles in Q1, 5,150 in Q2, 5,500 in Q3 and 6,892 in Q4. In 2014, Tesla sold 7,535 Model S EVs in Q1. Add in the 7,579 from Q2 this year, and you've got 15,100 or so, meaning that Tesla needs the next two quarters to average out at around 10,000 each in order to hit the 35,000-vehicle goal. Tesla expects 2015 to be even better, saying that the rate at which its expanding means that its, "annualized delivery rate should exceed 100,000 units by the end of next year." In other words, deliveries for Q4 2015 should be around 25,000 EVs. A few other tidbits from the shareholder letter and today's conference call: Tesla had a loss of $62 million last quarter. The company's Fremont, CA factory is being upgraded to make the Model S and X on the same line and will be up and running next week. Speaking of next week, the first operational Model X Alpha prototypes should be ready by next week. Tesla expects North America to continue to contribute strong demand for its EVs, despite the Model S being available here for several years now.