Closer Look at Tesla Motors' Deal With Nevada - KTVN Channel 2 - Reno Tahoe Sparks News, Weather, Video

Closer Look at Tesla Motors' Deal With Nevada

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Thursday's announcement that the state has hammered out a deal to bring Tesla to Nevada was still the talk of the town on Friday. Financial experts say it's an investment in the future of the area and the future of this state.

"This is a point in time that we will look back on 30 years from now and point to as when we as a state changed our trajectory," said Andrew Clinger, Reno City Manager.

The state is making a sizable investment. But gambling is something we know a little bit about. And financial officials seem to feel that you can't win the game if you don't play it.

"Look at it this way," said economist Robert Barone, "if they don't come, we get if they do come, at least we get 6,500 jobs created, a huge manufacturing plant and growth in our economy. I just can't see how this isn't good for us."

In that deal the state is offering Tesla $1.3 billion in incentives including more than a billion in tax abatements. If approved as is, Tesla could operate here tax free for ten years.

What does Nevada get? Economic diversification, a committed investment in education and ten years from now a bump in taxes. They say the return will be 80-1 on the investment. And for Nevada that's expected to add up to $100 billion in economic impact over the next 20 years. You see, it's not just the 6,500 manufacturing jobs that add to that. It's as many as 22,000 extra jobs for suppliers and construction and economic growth.

Barone says if the incentives were taken out the equation, Nevada was the best decision anyway.

"It has I-80, the land, the lithium mine, a university nearby, a good tax structure and not nearly as much environmental regulation as California. It was the clear best choice. And (CEO) Elon Musk was looking for the best location for the long run. Nevada has that. Maybe not as much immediate money but the best of everything else."

And he says, Tesla's endorsement should bring other companies following it.

"Other companies will see that Apple is here and Tesla is here and they will want to be here too. This is the best thing for Nevada in a very long time."

That deal still has to get legislative approval.
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