Tesla Announces $3.6 Billion Investment in Electric Semi-Truck Manufacturing in Sparks | News from Carson City Nevada

Tesla plans to invest $3.6 billion in manufacturing batteries and electric semi-trucks in Sparks, expanding the company’s presence and the clean energy industry in Nevada, the White House said Tuesday.

The Sparks plant will ramp up production of the Tesla Semi, an all-electric Class 8 semi truck. CEO Elon Musk set a goal during his third-quarter earnings call in October to produce 50,000 semi-finished products annually by 2024.

Gov. Joe Lombardo (R-NV) and White House infrastructure chief Mitch Landrieu praised the announcement as a testament to the strengths of their respective administrations. Landrieu called Tesla’s investment part of a “manufacturing boom of President Biden’s first two years” that will bring more than 3,000 jobs to the Reno-Sparks area.

“This announcement is the latest in more than $300 billion in private sector investments in clean energy and semiconductor manufacturing announced since the president took office,” Landrieu said in a statement. “This will create more than 3,000 good-paying jobs in Nevada, helping America lead in clean energy production, strengthening our energy security and ultimately lowering costs for families.”

Tesla’s investment will be the second in the region. In 2014, then-Governor Brian Sandoval brought the electric vehicle giant to Northern Nevada through tax incentives valued at $1.25 billion over 20 years. The result — Storey County’s Tesla Gigafactory — is one of only five such Tesla facilities in the world.

According to a 2022 report by the Nevada Governor’s Office of Economic Development (GOED), the Gigafactory employed more than 18,000 Nevadans in construction and battery manufacturing.

Tesla has not applied for tax incentives for its new project, according to GOED. Nevada law automatically provides tax credits and abatements for qualified projects where capital investment exceeds $3.5 billion over 10 years, as long as 50 percent of employees are Nevada citizens and the company meets certain wage and health insurance requirements.

The size of the new investment seems to meet the requirements.

Lombardo touted Tesla’s announcement — which he called a new facility — in his State of the State address Monday as evidence of his administration’s pro-business stance.

“Whether it’s closing the lithium chain, unlocking innovation and investment in logistics, entertainment, science and technology, or embracing entrepreneurship, the message is that Nevada is ready to partner,” Lombardo said.

Lombardo also promised to attend the announcement. His office has not yet confirmed whether he was indeed present or specified what tax breaks the company would receive.

Landrieu, meanwhile, hailed Tesla’s investment as a victory for the Biden administration’s clean energy efforts, particularly in funding electrification and vehicle manufacturing through the bipartisan infrastructure law. The legislation allocated $2.8 billion to process and manufacture battery materials — nearly $120 million has already gone to Nevada companies — and $7.5 billion to build a network of electric vehicle charging stations.

Tesla CEO Elon Musk appeared in Nevada in December to unveil the all-electric semi-truck his company will build, delivering it to customer PepsiCo and announcing Tesla’s use of the vehicles between Nevada and its facility in Fremont, California.

This story is used with permission from The Nevada Independent. Go here for updates on this and other stories.

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