Tesla says construction work underway on plant near Reno

By Cy Ryan

Friday, Nov. 21, 2014 | 12:36 a.m.

Tesla Motors says 400 construction workers are busy building its battery-producing factory east of Reno — and half of them are Nevadans.

Daniel Witt, a business-development manager with Tesla, told board representatives of the Governor's Office of Economic Development that he expects to eventually hire 3,000 construction workers and that some of them will remain after the factory is complete.

The board voted Thursday to approve up to $1.1 billion in tax breaks for the company that manufactures a battery-driven car at its plant in Fremont, Calif.

Gov. Brian Sandoval called this the “final step” in approving the tax abatements. He called it a “perfect marriage” between Nevada and the company.

Witt said the company plans to start making its “mass market” vehicle in 2018 that will cost roughly $35,000.

The company plans new factories around the world, said Witt.

Dan Klaich, chancellor of the Nevada System of Higher Education, said it is working with Tesla to produce students who will be qualified for the high-paying jobs. “The front lines will be our community colleges,” he said at the meeting in Las Vegas, which was seen on video conference in Carson City.

Witt said Tesla would expand its market to produce SUVs and it will also be working with other companies.

Steve Hill, director of the economic development office, said Tesla will be accountable in order to receive the incentives.

If the $3.5 billion investment by Tesla is not met, the tax breaks will not be available, he said.

Witt said the roof over the plant will be finished in 2015 and the workforce at the business will start being hired in the middle of 2016. Full employment of the 6,000 jobs will come in 2022.

Nevada beat out Arizona and Texas to attract the Gigafactory in Storey County. The batteries require a small amount of lithium, and Witt said the company will look for this in Nevada and in other places close to the factory.