In 2014, northern Nevada wooed Tesla to the Silver State, and like most regions looking to attract business, did so with a generous tax abatement package. At the time, the area was still recovering from the Great Recession, and Tesla was little more than a promising company that had only begun mass producing its electric cars two years earlier. It was a sign of Nevada’s growing commitment to diversification – a big “open for business” sign. Well, kick-starting the economy has proven successful and this past week, Tesla re-upped their commitment to the larger Reno Metro by announcing an additional $3.6 billion infusion.
Nevada’s Tesla Gamble
Eight years ago, Tesla promised a $3.5 billion investment in Nevada with the construction of its very first Gigafactory. They came close to doubling that number, investing $6.2 billion in the state with the 5.4-million square foot Gigafactory, which provided 17,000 local construction jobs. The company hired over 11,000 team members to churn out billions of battery cells, battery packs, drive units, and energy modules.
Now, Tesla plans to invest another $3.6 billion to continue growing what it calls Gigafactory Nevada. Two new factories, including the highly-anticipated Semi factory (to manufacture the fully electric combination truck), are in the works, with an expected 3,000 additional new team members to be hired.
As mass lay-offs are announced in the tech and media industries, this kind of news is welcome and must be particularly gratifying to the Governor’s Office of Economic Development, which helped push through the original Tesla deal. The possibility of new tax abatements is, as you might imagine a hot button issue, but the fact remains that the northern Nevada economy is in a good place. In addition to accolades and top ten rankings on lists for job growth, performance, workforce demographics, Reno and the greater northern Nevada region consistently land high on lists for quality of life and outdoor activities. It’s a nice balance.
If being 12th on the list of best cities for young professionals (and according to this list, San Francisco ranks 21st) is giving you a reason to explore relocating to Reno, Nevada, then give me a call. I’m happy to answer your questions about the local market.