Elon Musk's Tesla Gets $330M Tax Break In Nevada As EV Maker Plans To Boost Investment, Jobs

Tesla Inc TSLA will receive $330 million in tax breaks from Nevada for committing to expand its vehicle battery plant near Reno and for the construction of a new electric semi-truck factory.

What Happened: The approval was given by the Governor’s Office of Economic Development. The state’s Republican Gov. Joe Lombardo said, “Tesla has far exceeded every promise they made going back to 2014,” reported Fortune.

Lombardo called the yet-to-be-finalized agreement between the Elon Musk-led company and the state “an incredible investment in our state,” according to the report.

The governor said Tesla spent $6.2 billion on its existing Gigafactory in Nevada, which he said generated 17,000 construction jobs and more than 11,000 “highly paid-permanent jobs,” reported Fortune.

See Also: How To Buy Electric Vehicle (EV) Shares

Why It Matters: The company reportedly projects another $3.6 billion capital investment in Nevada creating 3,000 new jobs with an average hourly rate of $33.49, reported Fortune.

The $330 million tax break was reportedly not disclosed until Monday due to a nondisclosure agreement between Tesla and state officials.

Lawmakers in Nevada’s Democratic-controlled state Legislature will reportedly only have three days to review the 20-year tax abatement.

“There is little to no opportunity to explore how this deal may affect housing supply, public schools, public safety, and other vital government services in the region,” said Democratic State Sen. Dina Neal, reported Fortune.

However, public support for the deal reportedly came from the White House and President Joe Biden’s infrastructure chief Mitch Landrieu.

Price Action: On Thursday, Tesla shares closed 5.85% lower at $190.90, according to data from Benzinga Pro.

Read Next: Tesla Announces Gigafactory Mexico To Manufacture Its Next-Gen Vehicle