Tesla Deal Questioned by PLAN
Tesla has been running a relatively quiet race to become the future of transportation. The deal to bring Tesla to Nevada won't be quite so quiet.
Monday, September 8th 2014, 3:19 pm PDT
Monday, September 8th 2014, 6:25 pm PDT
Tesla has been running a relatively quiet race to become the future of transportation. The deal to bring Tesla to Nevada won't be quite so quiet. Governor Brian Sandoval is expected to call a Special Session of the Legislature to consider it later this week. In the meantime, Bob Fulkerson with the Progressive Leadership Alliance of Nevada is asking some questions about the deal and the process.
"What we want is transparency. We don't think these numbers can possibly be right. We want to see the details before we take this gamble. So we are writing to legislative leaders asking that they have an independent economic study done on the real numbers before they vote."
He's referring to the number of jobs they say they will create: 6,500.
"A lot of high tech journals say that's crazy that most of those jobs would be automated," Fulkerson says.
He wonders if the return of 80-1 on the deal can possibly be right.
"Most economists say that's impossible," Fulkerson says.
And he's concerned about the idea that taxpayers would fund road construction that Tesla would use.
Mike Kazmierski is the President of the Economic Development Authority of Western Nevada. He says he's heard concerns before this.
"As far as the roads, there are improvements to the roads and the infrastructure that will need to be made but they are improvements we would have made anyway. This just gets us moving quicker. And once the improvements are made other businesses will likely use them as well."
He also says there is a difference between giving money to Tesla and giving them tax abatements.
"We aren't giving them any cash. We are just saying we will tax them less if they perform. We see they are willing to invest $5 billion in this area we are willing to tax you less to get on your feet. Then they will be paying like everyone else once they are established," Kazmierski said.
PLAN sent its letter to legislative leaders today hoping to see the Legislative Counsel Bureau do its own study before legislators vote.