Tesla Case Paper

Decent Essays
The effectiveness of the arrangement was a success from both Tesla’s viewpoint and the state of Nevada. As a team our assessment is that both parties came away from the negotiation process having achieved a positive outlook on their investment. In Tesla's case they are now able to construct and operate with large tax breaks while also strategically locating themselves in an area where they can also construct their lithium mine. The state of Nevada on the other hand will receive an influx of around 16,000 new indirect jobs helping stimulate their local economy. The contract also addresses some important concerns the state may have about its positive returns. An example of this is the Nevada Residency Requirement outlined in the contract under the continuing requirements applicable to the lead participant. This states that at least 50% of the employees engaged in the construction and 50% of the employees engaged at the project must be Nevada residents. By addressing this in the contract the state of Nevada ensures that the return aids the state and it’s residents. The contract also does a nice job of ensuring Include clawback (recapture) provisions in the final contract with Tesla. Nevada legislators should include clawback provisions in the contract that would require Tesla to pay back some or all…show more content…
This commission (comprised of citizens, nonprofits, legislative auditors, and tax policy experts) would be charged with monitoring the progress of Tesla, tracking the incentives and abatements schedule, ensuring that performance targets are met, evaluating Tesla’s local and state economic and fiscal impacts, assessing the cost-effectiveness of the incentive program, and measuring actual versus expected performance. The committee would be required to report to the Governor and Nevada Legislature once a
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