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Tesla risks losing $ 750 million package if job targets are missing in New York Gigafactory: Report




Tim Pearce | Energy Reporter

Tesla is at risk of missing job targets in its New York State Gigafactory 2 and paying tens of millions of dollars in fines, a former Tesla director said.

New York agreed to invest $ 750 million in building the Tesla factory to produce solar cells and batteries. In return, Tesla agreed to take 500 jobs to the state by the end of April 2019, 1,460 working with 500 of those produced by April 2020 and 5000 jobs within a decade of facility completion, according to Reuters and Greentech Media. [19659004] Tesla wanted to rent the New York facility for $ 2 a year plus utilities, according to Greentech Media, referring to a Securities and Exchange Commission filing. If Tesla fails to conclude its agreement, it will pay an annual penalty of $ 41[ads1].2 million until it reaches the agreed target.

Tesla told Greentech Media that the company had already met the 2019 target, but others expressed concern

"At best, [meeting the jobs target] will be challenging for them," said a former Tesla director who left the company in 2017 , Greentech Media said.

Tesla reported more than 800 employees at Gigafactory 2 at the end of 2018, but that figure fell by about 50 after the electric car company announced that 7 percent of the workforce had occurred in January. (RELATED: Elon Musk cuts thousands of Tesla's workforce)

Scaling back seems to have interrupted Tesla's trajectory to employ the New York plant and doubted the company's ability to hit the job goal, a previous one employees said to Greentech Media.

  Cars parked outside Tesla Inc. Gigafactory 2, also known as RiverBend, a joint venture with Panasonic to produce solar panels and roof tiles in Buffalo, New York, USA, August 3, 2018. REUTERS / Brendan McDermid [19659010] Cars parked outside Tesla Inc. Gigafactory 2, also known as RiverBend, a joint venture with Panasonic to produce solar panels and ceiling tiles in Buffalo, New York, USA, August 3, 2018. REUTERS / Brendan McDermid </p>
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<p>  Tesla Announced in March, it was closing nearly half of its physical stores in an effort to cut costs and attempt to beat and maintain profitability. The store closures came together with a rise in prices for many of the company's electric car models. </p>
<p>  Tesla's relationship with the SEC has been stoned recently after Tesla CEO Elon Musk tweeted in August 2018 that he planned to take the company private at $ 420 per share. Tweet provoked a SEC survey that resulted in fines of $ 20 million for Musk and his car company. </p>
<p>  Tesla did not immediately return a request for comment. </p>
<p>  <a href= Follow Tim Pearce on Twitter

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