Tesla Cybertruck Gigafactory: Missouri dangles $1 billion in incentives in formal bid for the plant

April 14, 2020

Missouri has submitted an official bid to Tesla for the Cybertruck Gigafactory and they claim that it’s worth about $1 billion in incentives.

Ever since CEO Elon Musk announced that Tesla was scouting locations in the central US for a new gigafactory to build its electric pickup truck dubbed “Cybertruck Gigfactory”, several states and regions have submitted bids to try to attract the plant.

Musk didn’t elaborate on where specifically in the central US Tesla is currently scouting, but the CEO previously mentioned a tri-state area and Texas as possible locations for a second vehicle manufacturing facility in the US.

Several reports also stated that the Nashville area is in talks with Tesla.

Missouri, Colorado, and Arkansas also added themselves to the competition with claims to have reached out to Tesla with preliminary discussions.

Now we’ve learned that Joplin, Missouri has formally submitted a bid, according to Toby Teeter, president of the area’s chamber of commerce.

He told reporters during a briefing Monday (via the Joplin Globe):

“Tesla is looking for a new location somewhere in the Midwest for a gigafactory. Approximately a week ago the city of Joplin and the Chamber of Commerce put a formal bid together and submitted it to Tesla corporate.”

It comes a few weeks after Teeter informally offered some land to Tesla for Cybertruck Gigafactory.

Now the bid is apparently formal and has been submitted to Tesla.

According to the chamber of commerce, it would be worth $1 billion in incentives over 12 years.

Here are the main points of the incentive package:

  • A 1,042-acre site that would be sold at a 50% discount to Tesla.
  • A 100% tax break for 12 years.
  • State incentives that would include Missouri Works tax credits to provide capital as well as funding to buy equipment and assistance with workforce training. Missouri automotive manufacturing incentives, Missouri Builds, and state and local sales tax breaks are part of the package.

On top of the incentives, Joplin also estimates that Tesla would save about $75 million a year in payroll compared to Nashville and Austin, which are apparently the frontrunners, due to the lower cost of living.

But the financial incentives are not the only factor at play for Tesla.

Musk mentioned several other factors when it comes to choosing a location for the Tesla Cybertruck Gigafactory:

“Incentives play a role, but so do logistics costs, access to a large workforce with a wide range of talents, and quality of life.”

When it comes to logistics, Joplin claims that the location in the bid is going to have rail access and it is located near interstates 44 and 49 and within minutes of the Joplin Regional Airport.

Teeter added:

“We’re also the trucking capital of America. That gives Tesla front-row access to its next market with four of the largest trucking companies in the nation within a 60-mile radius,”

As for the workforce, Teeter notes that there are 193,000 people in the workforce within a 20-mile radius and 279,000 within 30 miles, including 150 battery engineers and more than 500 licensed engineers within a 60-mile radius.

The company didn’t announce a timeline to choose a location for the factory, but it is expected to be soon since Tesla plans to bring the electric pickup truck to production late next year.

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