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California Likely to Lose Tesla's Gigafactory

September 03, 2014

Illustration of Gigafactory via Tesla Motors.
Illustration of Gigafactory via Tesla Motors.

California’s legislature has wrapped up its session without including a proposed incentive for Tesla’s Gigafactory.

The Senate Bill would reform pieces of the California Environmental Quality Act to entice Tesla to bring its lithium-ion battery factory to the state. Although the Bill was introduced in February of this year, legislators said there would be no action on the bill before an agreement with Tesla was made, according to an Associated Press report.

Gov. Jerry Brown and state Sen. Ted Gaines took the lead on putting together the incentive package. The draft catered to Tesla’s building timeline of being up and running by 2017 and also included tax breaks totaling around $500 million.

When Tesla originally announced the state contenders, California was not included. Although Tesla is based in Palo Alto, Calif., the strict environmental regulations steered Tesla to other states such as Nevada, Arizona, New Mexico and Texas. 

Although regular session has concluded, lawmakers have proposed special sessions in order to lock down a deal with Tesla, according to the Los Angeles Times.


Tesla Extends Warranty, Calif. Preps Gigafactory Incentives

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