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by Robotbeat 2295 days ago
This is just not accurate. The Buffalo plant economic stimulus package had a clawback provision if Tesla doesn't meet employment milestones. They have been meeting those milestones and so will not have to pay the fee: https://buffalonews.com/2020/02/13/tesla-looks-like-a-good-b...

I know people want to make this into some corruption scandal (blaming it either on the state or on Tesla or both), but the state did their job by putting these employment requirements in their contract WITH PENALTY, and Tesla is doing their job by hiring enough people to avoid the penalty.

What's really the problem, here? 5/6ths utilization of capital equipment seems pretty good, particularly in a fast evolving field like solar power (where things like bifacial panels and Tesla's integrated solar roof weren't really a thing when the deal was first signed).

2 comments

You're trying to act like everything is A-OK with this project, when it has in reality been a huge waste of public money. First, there has already been a large corruption scandal centered on this project, with people in prison because of associated corruption (search Alain Kaloyeros). Second, those Tesla employment requirement milestones have been repeatedly reduced to require fewer jobs, and the types of required jobs has also been watered down. The requirements in the original agreement are more stringent than the 1460 jobs required now.

The state of NY just wrote off 92% of the value of its $957M investment in the factory: https://buffalonews.com/2019/11/08/pennies-on-the-dollar-the... Does that sound like Tesla is operating at 5/6 utilization of capital equipment?

Panasonic just announced that they're pulling out of the Buffalo factory: https://www.eveningtribune.com/news/20200227/after-nys-750m-... Tesla just wasn't giving them the business that they were promised in 2016 when they joined the project.

I had high hopes for this project when it was announced. It is near my hometown, and I thought it might be a good boost for the local economy. All it seems to have been is a big siphon from public funds, but not a siphon to where it is needed.

None of what you've said above justifies your completely misrepresenting the deal as having economic output goals that were watered down, and the parent corrected you on it. It's fine to not like the project, but let's not pretend that spreading misinformation about it is helping anyone.
From what I have heard recently, they may not end up doing the solar roof there. It sounds like the hardware for that is coming from China instead. OTOH, they are getting new production lines for superchargers and other things.

You are definitely right that it isn't clear cut. From what I can see, Tesla has met their contractual obligations even though things haven't gone as planned.