New York state spent $959 million to build and equip Tesla’s 1.2 million-square-foot Gigafactory 2. Tesla is leasing the facility for $1 per year for 10 years.
The suppliers Cuomo believed would flock to the manufacturing hub never showed, and most workers that live on-site are lower-paid, desk-bound data analysts working on other sectors of Tesla’s business, not its solar-panel operation, according to the Journal.The state paid to build and also owns the expensive industrial space, which it equipped with $240 million worth of solar-panel manufacturing equipment. However, Tesla’s cost for leasing the space is just $1 per year.
The solar-energy unit is averaging a dismal 21 installations each week, according to energy analysts at Wood Mackenzie who reviewed the plant’s data, the outlet reported. The Gigafactory is underdelivering across the board, including in creating a bustling manufacturing hub. So far, the only new business in the South Park area near the facility is a Tim Hortons.The state has agreed to amend the terms of its subsidy a dozen times over the years, including by reducing the number of jobs that must be created in manufacturing as well as shifting deadlines to accommodate the company, according to The Journal.
“In terms of sheer direct cost to taxpayers, this may rank as the single biggest economic development boondoggle in American history.”
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