Tesla on track in hiring, capital investment in Northern Nevada, official says

CARSON CITY — Nevada’s economic development chief assured a panel of state lawmakers Wednesday that Tesla’s mammoth gigafactory is on track in both hiring and capital investment.

“No, we don’t have any concerns,” Steve Hill, executive director of the Governor’s Office of Economic Development, told members of the Legislative Commission.

Assemblywoman Irene Bustamante Adams, D-Las Vegas, questioned Hill following a June audit that didn’t match projections given to lawmakers in 2014 when they approved a $1.3 billion incentive package to lure the electric car maker’s battery plant to Northern Nevada.

“Is there any red flags?” Bustamante Adams asked.

Hill explained projections given to lawmakers were made when Nevada was in early discussions with Tesla, headed by billionaire entrepreneur Elon Musk.

He said there was a nine-month gap between when the projections were made and when the project actually started. Additionally, he said Tesla at the time had intended to build the entire $5 billion facility all at once, then changed its plan to build the plant in phases.

“If you look at what’s happening on the site and the progress that they’ve made, I think it’s exciting and I think they’re making great progress,” Hill said.

Hill said the factory, a partnership between Tesla and Panasonic Corp., is in the process of doubling its size from what it was just a few months ago.

Tesla recently said its workforce is up to 850.

GOED now projects the company will employ 3,200 on site by March 2018 and will achieve a capital investment of $2.5 billion by March 2019 — an investment rate of roughly $50 million per month.

Hill acknowledged there is some concern about finding qualified workers as Nevada’s economy improves and the unemployment rate falls.

“The companies and all of the entities involved in work force training and craft training are working to respond to that need,” Hill said.

Hill also noted that for Tesla to qualify for the entire $1.3 billion in incentives approved by lawmakers, the company would have to invest $11.5 billion on the site.

Contact Sandra Chereb at schereb@reviewjournal.com or 775-461-3821. Find @SandraChereb on Twitter.