Elon Musk’s $1B solar-panel factory in NY a ‘boondoggle’: report
New York’s ambitious plan to build the largest solar-panel factory in the Western Hemisphere has turned into a major financial disaster for taxpayers, according to a report. The “Tesla Gigafactory 2” in Buffalo, NY was built at a cost of $959 million, making it one of the most expensive projects of its kind for the state. The factory, envisioned by Elon Musk, was expected to create 850 permanent jobs and 500 construction jobs. However, critics say that the promises made by then-Governor Andrew Cuomo were too good to be true. The factory has failed to attract suppliers and most workers on-site are not involved in solar-panel operations. In fact, the only new business in the area is a Tim Hortons. Tesla is leasing the space for just $1 per year, despite the state’s huge investment. The solar-energy unit is also underperforming, with an average of only 21 installations per week. The state has repeatedly amended the terms of its subsidy to accommodate Tesla. Critics argue that this project is the biggest economic development failure in US history in terms of cost to taxpayers. However, Cuomo’s spokesman defended the project, stating that there are more jobs now than when the site was an empty steel mill lot. Tesla reported creating 1,700 jobs at the factory, surpassing the required 1,500 positions to avoid penalties. Despite the factory’s shortcomings, Tesla has reported strong delivery and production numbers, with its shares soaring over 155% this year. Elon Musk is now the world’s richest person with a net worth of $244 billion.
FAQs:
Q: How much did New York spend on building the Tesla Gigafactory 2?
A: New York spent $959 million to build and equip the factory.
Q: How many jobs were expected to be created?
A: The project was expected to create 850 permanent jobs and 500 construction jobs.
Q: Why is the factory considered a financial disaster for taxpayers?
A: Critics argue that the factory has failed to attract suppliers and the solar-energy unit is underperforming. Additionally, Tesla is leasing the space for just $1 per year despite the state’s large investment.
Q: How many jobs has Tesla reported creating at the factory?
A: Tesla has reported creating 1,700 jobs at the Gigafactory.
Q: Is Elon Musk benefiting from this project?
A: Despite the failure of the Gigafactory 2, Tesla’s strong performance has led to an increase in Musk’s net worth, making him the world’s richest person.
Report calls Elon Musk’s NY solar-panel factory a wasteful project
New York State’s ambitious plan to build the largest solar-panel factory in the Western Hemisphere has turned into a costly disaster for taxpayers, according to a report. The “Tesla Gigafactory 2,” a 1.2 million-square-foot facility in Buffalo, was touted as a linchpin of the “clean energy revolution” by former Governor Andrew Cuomo in 2013. The state spent a whopping $959 million to construct and equip the factory. However, the project has failed to live up to expectations, with suppliers failing to materialize and most workers focusing on other sectors of Tesla’s business rather than solar-panel production. Additionally, the facility has attracted little new business to the area. While Tesla is leasing the space for just $1 per year, the state owns the expensive industrial space and has dubbed the deal one of the “worst possible terms” for taxpayers. The factory’s solar-energy unit is performing poorly, averaging only 21 installations per week, far below the expected output. The state has amended the subsidy agreement multiple times, reducing job creation requirements and shifting deadlines to accommodate Tesla. Critics argue that this project is one of the biggest economic development boondoggles in American history. Despite these setbacks, Tesla reported strong delivery and production numbers, leading to an increase in its stock price. Elon Musk, the CEO of both Tesla and SpaceX, has become the world’s richest person, with a net worth of $244 billion.