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Tesla Car Chase Ends In Flaming Car Wreck Explosion So Violent It Is Confused For Fireworks

Submitted by Tyler Durden on 07/07/2014 08:09 -0400

With GM recalling virtually every car it has made since emerging from bankruptcy, another maker of flaming paperweights has quietly managed to slip through the cracks of public attention. So it was perhaps well-timed, if only for GM, that over the weekend we not only learned, but saw footage, of what happens when a Tesla is involved in a Police chase that results in a lamp post crash. Nothing short of complete obliteration.

As KTLA reported, "a stolen Tesla involved in a fiery crash split into two following a pursuit that ended in West Hollywood early Friday, leaving seven people injured, police said. The incident began when police received a call from a Tesla dealership stating that an individual was “tampering or messing with” one of the vehicles, according to Sgt. Campbell with the Los Angeles Police Department’s Pacific Division. Officers responded to the dealership and a pursuit began at about 12:45 a.m., Campbell said.

The good news, if only for Tesla car snatchers, "during the pursuit, the Tesla reached speeds of up to 100 mph. Also: better than a Bronco for aspiring wife murderers.

However, the car chase was not to last: the pursuit ended on La Brea Avenue between Fountain and Lexington avenues a short time later when the driver of the Tesla hit two other cars and a lamp post, Campbell said.

A witness told KTLA that the Tesla hit the pole and split in half, and that part of the vehicle landed on top of a white car.

“There were fires after that that broke out,” Eric Martinez said. “I saw the firefighters — like 25 firefighters – standing around the white car with the Jaws of Life.” Martinez added that at one point, explosions could be heard.

“We originally thought it was fireworks. Everybody thought it was fireworks that were just exploding,” he said.

And there you have another marketing opportunity: Optional fireworks flaming end: $995.99 extra.

The Tesla sure did not go quietly: in total, the Tesla collided with four vehicles, injuring a total of 6 victims, before splitting in two, according to the Los Angeles County Sheriff’s Department.

But the best news for the flaming paperweight: not even the driver managed to die.

The man driving the Tesla — who was ejected from the vehicle — was originally thought to have died, but he was resuscitated while en route to a hospital, according to a Sheriff’s Department news release.

Two LAPD officers were injured during the pursuit when their vehicle hit the center divider, according to LAPD Officer Bruce Borihanh.

The officers complained of pain and were taken to a local hospital, Borihanh said, adding that they were later released and did not sustain injuries.

And of course, as Bloomberg followed up, Tesla Motos, Inc. seemingly unable to grasp how its car could i) split in two and ii) proceed to explode in a fiery wreck, has said it wants to study the remnants of a stolen Model S sedan that split in half and burned after a high-speed chase and collision in Los Angeles.

“We’ve asked to take a look at the vehicle as soon as that’s possible,” Simon Sproule, a company spokesman, said in a phone interview. “There aren’t so many S’s involved in major crashes, and certainly not quite like this one, so we absolutely want to have a look to understand what happened.”

Indeed, a post mortem investigation is probably not a bad idea. And furthermore, if anything, recalling all those tens of thousands of Model S cars sold is probably not such a bad idea. After all just look at GM - after admitting its work product was absolutely abysmal, and the company didn't care about the lives of its customers if it meant higher EPS, resulting in nearly 30 million recalls in 6 months, GM managed to sell more cars in June than any time since Lehman. It almost appears as if Americans, bored with their lives, and certainly the stock market, are eager to experience the excitement of a violent, flaming death.

As for the Tesla, a clip of what happened is below.

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Mon, 07/07/2014 - 08:14 | 4931153 nmewn

Because all cars burst into flames on impact.

So...SHUT UP!!! ;-)

Mon, 07/07/2014 - 08:20 | 4931172 Headbanger

Because Obama

Mon, 07/07/2014 - 08:29 | 4931191 Stackers

What happens when you puncture a lithium ion battery

http://www.youtube.com/watch?v=pizFsY0yjss

Mon, 07/07/2014 - 08:32 | 4931202 nink

And that's why all Teslas have windscreen eject a seats

Mon, 07/07/2014 - 08:49 | 4931232 Keyser

Lithium Ion is by far has the least reaction when fractured and exposed to air... You want fireworks, then puncture a Lithium Polymer battery... Not sure why Tesla has not switched to LiFE packs as they pull far more amps than Lithium Ion and charge 4 times faster...

Mon, 07/07/2014 - 09:39 | 4931329 Headbanger

Obama Presidential Library :

http://www.omaha.com/news/nebraska/obama-presidential-library-float-at-n...

Mon, 07/07/2014 - 09:57 | 4931373 smithcreek

Flaming balls of Sigmund.

Mon, 07/07/2014 - 11:12 | 4931574 redpill

"And furthermore, if anything, recalling all those tens of thousands of Model S cars sold is probably not such a bad idea."

Recalling them for what? Pretty sure no car would have survived that ordeal in very good shape.

Mon, 07/07/2014 - 13:17 | 4932023 SilverIsKing

The Telsa engineers misunderstood the term 'stock split'.

Mon, 07/07/2014 - 13:30 | 4932062 COSMOS

All is ok folks, Elon knows better, he drives a Mercedes.

Mon, 07/07/2014 - 13:47 | 4932131 redpill

Notably no one expected Mercedes to issue a recall for the fireball following Michael Hasting's crash

Or what about the inferno that was the Porsche that Paul Walker was riding in?

While it was dumb luck in this case that the driver of the Tesla survived, it's pretty clear that fires are hard to avoid when you start running into things going over 100mph, and especially so if you have a giant tank of highly flammable gasoline in your car.

Mon, 07/07/2014 - 20:13 | 4933707 Unknown User

Thank Jesus the synagogue safely caught half of the car.

Tue, 07/08/2014 - 14:42 | 4936305 redpill

I see what you did there

Mon, 07/07/2014 - 10:47 | 4931484 Overfed

Dat's rayciss.

Mon, 07/07/2014 - 09:43 | 4931333 BandGap

Because oxidation.

The technology is being applied way before we fully understand it. Nature always gets her way.

Mon, 07/07/2014 - 09:48 | 4931351 tony wilson

not sure why tesla did not ask the fbi for the nikola tesla free energy motor paper work that would of been the cheapest option for humanity : )

Mon, 07/07/2014 - 12:56 | 4931953 redd_green

Heh, yeah. right.

Sat, 08/02/2014 - 22:15 | 5039257 ddsoffice

Hello,

I'm in Reno,NV and our very own RGJ.com has considerable coverage of Tesla since Northern Nevada will be the recipient of one of the planned 'Gigafactories'

Today I did a search on Zerohedge.com to see if there was anything about Tesla and flaming car wrecks was not something expected. I was thinking there would be discussion of Tesla's junk bond ratings.

I wonder too about why Nikola Tesla's name is being applied to a company and product that do not use true Tesla technology and the likely billions in government funding that are taking place during this most 'Death Cross' state of the global economy & massive transfer of wealth.

Here, my current compilation of links and stories/cut and pastes as regards Tesla for those who do not subscribe to the RGJ.com or are aware of the info. available via the University of Reno Nevada

Tahoe-Reno Industrial Center | Maps

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Tahoe-Reno Industrial Center | Maps

View Larger Map TRI Center – 50-Mile Radius: TRI Center - 50-Mile Radius Twelve miles of I-80 forms the northern boarder of Tahoe Reno Industrial Center with U...

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Tahoe-Reno Industrial Center Tahoe-Reno Industrial Center The Largest Industrial Center in the World

Why Choose TRI?
TRI is the largest industrial center in the world. But we are more than just quantity. We are quality.

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TRI Center – 50-Mile Radius:

TRI Center - 50-Mile Radius: Twelve miles of I-80 forms the northern boarder of Tahoe Reno Industrial Center with US 50 just miles from the southern border. While the park has small sections in two other counties (Washoe and Lyon) its landmass equates to 65 % of Storey County. Just the first phase of TRI Center is made up of 5,000 acres that will accommodate 100,000,000 square feet of industrial product. As a point of reference, the largest nearby market, Reno/Sparks (shown in blue on the map), currently has 55,000,000 square feet of developed industrial space. The Tahoe Reno Industrial Center in just Phase One is capable of doubling the Reno/Sparks industrial building market. Today, there are three phases (15,000 acres) complete and ready to go with all of the utilities and infrastructure to support any type of commercial development. Within the 50-mile radius shown on the map you will see that based on the 2010 census, we have roughly 660,000 people. To give you an idea of the logistics behind our location
TRI Center - 50-Mile Radius

Twelve miles of I-80 forms the northern boarder of Tahoe Reno Industrial Center with US 50 just miles from the southern border. While the park has small sections in two other counties (Washoe and Lyon) its landmass equates to 65 % of Storey County. Just the first phase of TRI Center is made up of 5,000 acres that will accommodate 100,000,000 square feet of industrial product. As a point of reference, the largest nearby market, Reno/Sparks (shown in blue on the map), currently has 55,000,000 square feet of developed industrial space. The Tahoe Reno Industrial Center in just Phase One is capable of doubling the Reno/Sparks industrial building market. Today, there are three phases (15,000 acres) complete and ready to go with all of the utilities and infrastructure to support any type of commercial development. Within the 50-mile radius shown on the map you will see that based on the 2010 census, we have roughly 660,000 people. To give you an idea of the logistics behind our location, within 250 miles there is a population of 13 million and just over 43 million within the 500 mile radius.

TRI Center – Up Close Location
TRI Center – Up Close Location

TRI Center – Up Close Location:

The Tahoe Reno Industrial Center is just nine miles from Reno/ Sparks with local access to the Reno Tahoe International Airport just 15 miles away. The park is made up of 107,000 acres, 160 square miles, making it, according to our research, the world’s largest industrial center. In the past 10 years, 3,800 acres of industrial zoned property, 22,000 acres of mixed-use residential commercial property and 7,000 acres of alternative energy use land has been sold. TRI Center has three interchanges accessing the park off of Interstate 80. Exit 32 USA Parkway, State Route 805, is the main thoroughfare and crosses the heart of TRI Center for 16 miles, eventually extending all the way to HWY 50. (The initial 8 miles of USA Parkway was completed by the developer and is in full use with utilities and infrastructure. The additional 8 miles, 4 of which have been graded, is ready for completion by the State of Nevada.) When connected to HWY 50, USA Parkway represents a reduction of 45 minutes of drive time from the Reno/ Sparks market to Las Vegas and Southern California markets via Interstate 95.

TRI Center Site Plan
TRI Center Site Plan

TRI Center Site Plan:

The Tahoe Reno Industrial Center Today has three phases of 5,000 acres (15,000 acres total) complete and ready to go with all of the utilities and infrastructure to support any type of commercial development. There are acres of Foreign Trade Zone sites where foreign goods may be admitted without being subject to customs duties or certain excise taxes. Current park residents include APL Logistics, Arrowhead, Benco Dental Supply Company, Diapers Plus, Eagle Picher Minerals, FedEx Supply Chain Services, Food Bank of Northern Nevada, James Hardie, PetSmart, Pioneer Nut, Plow & Hearth (1-800-FLOWERS), Schulter Systems, Tire Rack, Toys R Us, US Ordinance and Wal-Mart Distribution Center.

Housing Overview and Labor Pool
Housing Overview and Labor Pool

Housing Overview and Labor Pool:

Tahoe Reno Industrial Center dose not have a residential community located within the industrial center. In our professional opinion commercial business with its 24/7 activity and residential development with its schools and soccer moms- do not mix. This gives our user base in the industrial center a level of protection from the concerns and restrictions generated by a residential community. However, this does not hamper the access to a significant, talented labor pool. Due to the unique location of TRI Center, situated between the Reno / Sparks market and the city of Fernley, there is an excess of affordable housing and access to a local work force.

Western US logistics network
Western US logistics network

Western US logistics network:

TRI Center is located in the logistics hub of the west. From this region it is a one-day truck shipping time to California, Arizona, Nevada, Utah, Colorado, Oregon, Idaho, and Washington by utilizing services from companies like UPS, FedEx, and the newest addition to the list, On-Trac, who will deliver overnight shipping to almost all of these states at ground rates. The northern Nevada market is no stranger to distribution-based companies due to its strategic location in the west. TRI Center hosts companies like Walmart, PPG, Petsmart, 1-800-diapers, Toys-R-Us, Tire Rack, US Ordinance and GSI, to name a few.

Major US Transportation Networks
Major US Transportation Networks

Major US Transportation Networks:

TRI Center is tied into the US transportation network through I-80 and Union Pacific main line rail. I-80 provides direct access to California’s I-5 corridor and eastbound through Salt Lake City, Omaha, and eventually New York. This western rail infrastructure source is Union Pacific rail. The UP mainline was deregulated in the late 90s, allowing service by third-party rail service providers such as BNSF, to ensure competitive rates for all park rail users.

Distribution
The TRI Center is the west coast logistics hub, perfectly positioned to serve the eleven western states with one day shipping. Click here to learn more about distribution at TRI.

Manufacturing
The TRI Center provides a competitive advantage for manufacturers, processers, and recyclers by reducing transportation and occupancy costs while improving your supply chain process. Click here to learn more about manufacturing at TRI.

Data Center
The TRI Center is located in a Zone 1 Safety Zone that meets the stringent TIA-942 Tier 4 requirements. Plus our high desert location has no flooding or water issues with eight to nine months of free cooling. Click here to learn more about data center at TRI.

In the News
The Economic Development Authority of Western Nevada says more than 1,000 jobs have already been created this year, as more businesses move to our area. That's the largest total in five years.

Lambertson Industries is a manufacturing plant, in the Tahoe-Reno Industrial Center, and it is the newest company to move to our area, from out of state.
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The overall outlook for Northern Nevada is better as three forecasts for the region last week took a more optimistic turn for 2013. Several interesting observations were made at the Builders Association of Northern Nevada forecast, Colliers International commercial real estate event and Economic Development Authority of Western Nevada luncheon. Several speakers noted the region has taken steps to recover.
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USA Parkway Corridor at the Tahoe Reno Industrial Center

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Tahoe Reno Industrial Center (TRIC) is a massive 107,000 acre park that encompasses a developable 30,000 acre industrial complex with pre-approved industrial and manufacturing uses. The uniqueness of the park and the county in which it resides is outlined in a recent article (QUICK-DRAW DEVELOPMENT | Tahoe-Reno Industrial Center)

QUICK-DRAW DEVELOPMENT | Tahoe-Reno Industrial Center
At the edge of Virginia City sits an unassuming white-paneled building with a brick chimney, home to the Storey County community development department.

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Located nine (9) miles east of Reno on I-80, in a pro-growth Nevada county, the four 5,000 acre phases now available for development include:

•Rail serviced sites
•Municipal water and sewer utility companies
•High pressure gas to all sites
•Five (5) generating power plants on site with more than 900 megawatts of electrical power available to all park users

Are you looking to expand or consolidate your operations in a business-friendly county? Do you need to establish a new west coast warehouse and distribution center? Do you have a manufacturing process that requires special allowances or permits? We are ready to guide your discovery and serve your every need. We can help you navigate our state and local government process, provide in-depth statistical profiles and help you identify top service provides in our region. It is a key part of the TRIC promise of partnership and performance.

Visionary development. Unrivaled transportation advantages. Opportunity as far as the eye can see. If you’re ready to expand your company’s horizons and stake your claim on the all-important western frontier, there’s only one place to do it. Tahoe Reno Industrial Center.

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Reno contractor: Nevada’s Tesla site work ‘biblical’

Bill O’Driscoll 3:45 p.m. PDT August 1, 2014

10456102_824147320951150_6877832703582935478_n.jpg

In 3.5 weeks, F and P Construction moved an estimated 3 million cubic yards of dirt and brush and leveled a pad big enough to hold a 5 million-square-foot building at the Tahoe Reno Industrial Center. The site is a possible location for Tesla’s gigafactory. (Photo: Provided by F and P Construction )

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After months of waiting, the owners of Reno’s F and P Construction got the call they’d been hoping for on the afternoon of June 26.

Could they get going — and fast — on moving dirt at Tahoe Reno Industrial Center for what they knew was a really big but secret-to-the-public project, and have a pad leveled and ready within a month?

You bet, Cindy Pitts, F and P co-owner, recalled Friday, a day after electric car maker Tesla Motors confirmed rumors that it had broken ground at the center, thereby elevating Nevada to a finalist for Tesla’s coveted lithium-ion battery gigafactory that will cost $4 billion-$5 billion and create 6,500 jobs.

When F and P officials first heard in February of Tesla’s interest in the region, Pitts said, they got busy hounding the general contractor, Miss.-based Yates Construction.

“We wanted it so bad. We wanted it for Nevada,” said Pitts, who was bound then by a nondisclosure agreement to speak openly but is free to speak now that Tesla has made the venture public. “We just kept telling them we’d be the guys to do it.”

She pointed to other road and grading projects F and P has done at TRIC, including the site near the Tesla location that houses online retailer Zulily.

So when Yates called at 2:30 p.m. that day in June, F and P didn’t hesitate. What followed, Pitts said, was as impressive a contract job as she’s ever seen.

She did not disclose the contract’s cost but outlined the scale of F & P’s work.

“We hired 250 men and women in the next week. We brought in $65 million worth of equipment — 200 pieces of equipment, bulldozers, excavators, haul trucks,” she said.

In 3 1/2 weeks, her crews moved an estimated 3 million cubic yards of dirt and brush and leveled a pad big enough to hold a 5 million-square-foot building — more than five times the size of Amazon.com’s distribution warehouse in Fernley.

“We ran 24 hours a day, seven days a week. These men and women broke records,” Pitts said. “We knew we had to get it done by July 21 when Panasonic was going to come in. We built that pad in less than 30 days.”

Indeed, a week after Panasonic’s visit, the company signed an agreement with Tesla as a major partner in the gigafactory venture.

With the agreement in hand, Tesla CEO Elon Musk, in a letter to shareholders Thursday, divulged his company’s work at TRIC.

But he also said the site, 17 miles east of Sparks in Storey County, is not Tesla’s final choice. He said he expects to start similar work in one or two other states before a final site is selected “in the coming months.”

Even so, Pitts said she’s proud of her company’s work at TRIC, performed away from onlookers kept back by fencing and a guarded gate on Portofino Drive.

Pitts said her staff, idle at least for the present now that the pad at TRIC has been readied, showed Tesla that Nevada can handle the challenge.

“We told our men and women they were making history,” she said. “We paid them bonuses for working extra hours. As they got tired, we upped the wages. We fed them on the site. Nevada men and women met the challenge.”

TRIC developer Lance Gilman has seen lots of dirt moved at the 106,000-acre business park since it opened in 2000, and on Friday he called F and P Construction’s performance at the Tesla site “unprecedented.”

“Building that pad in three and a half weeks was biblical,” Gilman said. “Work has not stopped. There’s still ongoing things, building catch basins, rerouting flood control, bank stabilization. But the pad is finished. It’s ready.”

Now, he said, all that’s needed is a final green light from Tesla. While Tesla pursues sites for the same kind of work elsewhere, including California, Texas, Arizona and New Mexico, Gilman said construction products are already on order.

“All the steel has been ordered,” he said. “Those things take a lot of lead time. But I don’t think that signals anything for us. They could always move it somewhere else, I guess. But this all points to us at least heading in the right direction.”

Pitts agreed.

“We showed it could be done, and now we’re hoping to go forward,” she said. “We’re keeping the site wet so there’s no dust. We’re telling our people, be ready to go. We’re just waiting for the green light.”

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Thursday tweets about the Tesla gigafactory

Staff report 9:18 a.m. PDT August 1, 2014

470486005.jpg

Thursday’s announcement led to reaction on Twitter (Photo: Getty Images file photo )

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The following are a series of tweets Thursday about Tesla's gigafactory.

The company confirmed Thursday it has broken ground at the Tahoe Reno Industrial Center. One or two other finalists will also be picked for groundbreaking before the company selects a winner.

@Daveontv: Imagine how busy real estate agents are after #Tesla has confirmed that mysterious Reno project IS THEM! Valuable surrounding land now!!

@DWcook: Texas, New Mexico, Arizona, Nevada and California are competing for the new Tesla "Gigafactory." It's cute that CA thinks it's in the game.

@nj_atkinson: "Reno is Tesla's First Choice As A Gigafactory Site" http://onforb.es/1oStYDq I love this just because it has the word "gigafactory" in it.

@4kLED: Reno may have hit jackpot with Tesla Gigafactory lottery http://ift.tt/1m31wtL

@GeneralGCuster: @brianduggan @RalstonReports Brian, the Tesla News is monster. That will be a great employer for this whole great area ! #LoveItHere

@sdmoores: "@Forbes: Tesla Motors has broken ground outside Reno, Nevada for the Gigafactory " > called it. All welcome.

@JuiliaAWillmott: Reno is the best option for Tesla's Gigafactory...and the best place to live! #renotahoe #biggestlittlecity #renoish…http://lnkd.in/b_ftqcW

@Mikki2222: GIVE THE DARN TAX INCENTIVE !!!!! LETS DO THIS!!!

Tom Hassan

I live in Reno. Let's stop being an old fashion casino only town.
Give the incentives and get this high tech company here.

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· Follow Post · July 31 at 11:21pm

Tesla notebook: Stock up nearly $10

Emily Schmall, Associated Press 4:16 p.m. PDT August 1, 2014

AP080916037825_0.jpg

The front of a Tesla Roadster is shown at their showroom in Menlo Park, Calif., Tuesday, Sept. 16, 2008. (Photo: Paul Sakuma/AP file )

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A day after Tesla Motors’ earnings report — and its disclosure that it has prepared a site in Storey County for possibly building its $4 billion-$5 billion battery gigafactory — Tesla’s stock was up $9.97 to $233.27.

The electric car maker on Thursday reported better-than-expected quarterly results and delivered more vehicles than it previously forecast.

Nevada officials speak

Nevada officials on Friday submitted statements celebrating the state’s advancement to the finalist stage for Nevada’s gigafactory.

Pat Whitten, Storey County manager: “We want to acknowledge the tremendous collaboration that has brought us to this point with Tesla. The unprecedented media coverage received has raised the level of awareness to Western Nevada and to the valuable asset we have with the Tahoe Reno Industrial Center. We have our work cut out for us, however, we know that no other state can compete with the streamlined processes we’ve put in place in Storey County for ease and efficiency of development.”

Marshall McBride, chairman of the Storey County Commission: “Storey County, in working closely with Gov. Sandoval, the Governor’s Office on Economic Development, EDAWN and the Tahoe Reno Industrial Center, is grateful for the opportunity to showcase our capabilities as a region to the entire country. With this very positive announcement from Tesla, everyone now sees Northern Nevada, Storey County and Tahoe- Reno Industrial Center as the place for commercial and industrial development projects of any size.”

David Humke, chairman of the Washoe County Commission: “We’re excited about the possibility of Tesla coming to Northern Nevada and the potential benefits to our workforce and our community. The news yesterday about Tesla is an affirmation of how well this region can compete nationally and internationally to attract these types of economic development opportunities.”

Texas hasn’t given up

Republican Gov. Rick Perry’s office says it continues to negotiate with Tesla Motors to build an electric car battery factory in Texas, despite Tesla’s announcement Thursday that it has broken ground on a Nevada site.

The company has said a final decision on the location of the $5 billion factory will come in the next few months.

Other places in Texas are independently pursuing Tesla.

San Antonio Economic Development Foundation spokeswoman Liz Clark told the Associated Press on Friday her group has been given strict instructions by Tesla “not to say anything.”

Dallas County Economic Development Director Rick Loesberg said the county is still hoping a Tesla factory will be built in North Texas. He said the county is interested but doesn’t know if Tesla feels the same.

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Pros/Cons of Nevada, other Tesla competitors

Staff and wire reports 9:17 a.m. PDT August 1, 2014

470486005.jpg

Although Tesla has broken ground in Nevada, it’s not the only state still in the running.(Photo: Getty Images file)

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Although Tesla has broken ground in Nevada, it's not the only state still in the running.

Here's a look at what each of the five states have to offer:

Arizona

Arizona Competes Fund includes $25 million annually, much of which could be awarded to a company.

State corporate income tax allows manufacturers to base their tax bill fully on in-state sales, which could reduce liability to close to the $50 annual minimum.

There are no franchise, business inventory or estate taxes.

Tax credits worth up to $9,000 per job over three years for net new positions that pay median county wage or higher.

Passed bill to exempt manufacturers' electricity purchases from sales tax.

California

"California Competes" tax credit

Sales-tax-exclusion program for "advanced transportation" or related components.

Employment-training reimbursement.

Gov. Jerry Brown signed a bill in July providing property tax breaks for battery factories. Bill pending in Legislature to provide additional incentives for Tesla.

(Tesla's existing factory in this state reportedly got financial assistance from the state energy commission, worker training and tens of millions in tax breaks.)

Nevada

No corporate or personal income taxes.

Will abate sales tax on equipment purchases.

Will abate up to 50 percent of payroll taxes for four years.

Training grants with 25 percent company match.

Up to 50 percent abatement on personal property tax for 10 years.

Can discount electricity rates by 30 percent for 1 year.

Streamlined permitting process, few regulatory hurdles.

New Mexico

Changes enacted last year lower the maximum corporate income-tax rate to 5.9 percent by 2018 from 7.3 percent in 2014.

New options for calculating manufacturers' liability with a "single-sales factor" formula, taxing only sales that occur in the state.

High-wage-jobs tax credit of up to 10 percent of wages paid for new jobs.

Rural-jobs tax credit taken as credit against gross receipts.

Technology-jobs tax credit of 4 percent for research and development.

Renewable-energy tax credit of 1 cent per kilowatt hour of electricity from qualified sources.

Investment tax credit for manufacturers, taken as credit against gross receipts.

Texas

Texas Enterprise Fund, or "deal-closing" account. Cash grant available if a single Texas site is competing with another out-of-state option.

Exemptions for sales and use taxes.

Exemptions on certain goods that enter and leave the state within 175 days.

Exemptions for renewable energy.

Emerging-technology fund provides grants for research and development.

Workforce-development programs provide financing for job training.

Pros and cons

Conventional wisdom suggests each state has advantages and disadvantages in the factory showdown.

Arizona

Pro: Larger and more skilled workforce than Nevada and New Mexico and closer than Texas.

Con: Farther than Nevada and probably can't match the economics of Texas.

California

Pro: Tesla headquarters and car factory already located there.

Con: Difficult regulatory and litigation environment increase schedule risk. Musk told Bloomberg the state has too many environmental reviews.

Nevada

Pro: Proximity to Fremont, Calif., Tesla car factory. Lightning-fast permitting. Ground excavation already complete.

Con: Limited presence of high-tech manufacturing in the state and small workforce. Fewer dollars to spend on tax incentives.

New Mexico

Pro: Already has a relationship with Elon Musk's Space Exploration Technology Corp., which leases area at the state's spaceport for rocket launches. State has history landing solar-manufacturing facilities over Arizona.

Con: Arizona, Nevada and Texas are all "right to work" states that prohibit unions from requiring membership to work in certain industries.

Texas

Pro: Probably the biggest incentives to offer.

Con: Farthest site in contention from California car factory.

Source: Texas Economic Development Division, Nevada Governor's Office of Economic Development, Arizona Commerce Authority, New Mexico Economic Development Department, California Governor's Office of Business and Economic Development.

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On Saturday, August 2, 2014 4:29 AM, Our Countryhomeoffice wrote:

http://www.rgj.com/story/money/reno-rebirth/2014/07/31/tesla-can-keep/13...

Reno area has Tesla gigafactory — but can we keep it?

Bill O'Driscoll, RGJ 9:13 a.m. PDT August 1, 2014

-ren0731 tesla 01.jpg_20140731.jpg

On Thursday, July 31, 2014, Tesla confirmed that ground had been broken on a potential gigafactory location in the Tahoe-Reno Industrial Center east of Sparks, Nev. (Photo: Hilary Swift/RGJ )

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Northern Nevada has officially made it to the next round in the fight for Tesla Motor's battery gigafactory.

The electric car maker confirmed Thursday it has broken ground at the Tahoe-Reno Industrial Center in Storey County east of Sparks on the much-anticipated and mega-sized lithium ion battery plant that could be a game-changer for Northern Nevada's economy.

HOW BIG? : 10 numbers to know about Tesla and the gigafactory

VIDEO: What you need to know about Tesla's announcement

SCIENCE : How a lithium-ion battery is made

The disclosure by Palo Alto, Calif.-based Tesla makes Nevada a finalist for the 10 million-square-foot factory that Tesla wants to open by 2017 to make batteries for its Model 3 car, at a cost of $4 billion to $5 billion.

And it affirms what many have speculated for months: That the grading on 600 acres of sagebrush at Tahoe-Reno Industrial, kept by guards off-limits to passersby and identified only as "Project Tiger," is indeed the work of Tesla.

But that doesn't mean Nevada has won the project coveted by officials in several states vying for the promise of economic windfall and the estimated 6,500 jobs the gigafactory will bring.

In a conference call with Wall Street analysts Thursday, Tesla CEO Elon Musk said of the grading work at TRIC and the urgency of the endeavor: "We're going to be doing something similar in one or two other states. It makes sense."

He did not identify those states. Texas, Arizona, New Mexico and more recently, California, were the other semifinalists.

Against that competition, Nevada has its work cut out moving forward, officials say. Whatever happens, Musk said in a letter Thursday to Tesla shareholders that the final gigafactory site will be determined "in the next few months."

First, though, is the issue of cost. Musk, speaking with analysts after release of Tesla's second-quarter earnings, cited an agreement earlier Thursday between Tesla and Panasonic Corp. for proceeding with the gigafactory.

The two companies will cover most of the project's costs, he said, but added he expects the winning state to put up as much as 10 percent. He did not elaborate on what form that stake would be in, but late Thursday Tesla spokeswoman Liz Jarvis-Shean said the state portion is "best described as a package of benefits and incentives."

For Nevada, that would mean committing $400 million to $500 million — a sizable sum given the current statewide general fund budget of $6.5 billion.

Incentives

State economic development officials have refused to say what incentives are being offered to Tesla.

On Thursday, Republican Gov. Brian Sandoval said in a statement, "I am pleased with today's announcement. Discussions with Tesla are ongoing."

And while the Legislature is out of session until February, legislative leaders took a wait-and-see approach, preferring to see the details first.

"Any time that we can lure a new industry with a real return on our investment, that's always something we should be looking at," said Assembly Speaker Marilyn Kirkpatrick, D-North Las Vegas.

Added Senate Majority Leader Mo Denis, D-Las Vegas, "We want to diversify our economy so we want to attract good projects to come here. I'm in support of that. But we'll have to see all the specifics."

Assembly Minority Leader Pat Hickey of Reno said Nevada is an attractive location even without offering the kind of huge cash incentives available in states like Texas.

"Our location, our current tax structure, the transportation availability, the access to lithium," Hickey said. "I think Nevada is a pretty good deal because of what we have to offer regardless of incentives."

Mike Kazmierski, CEO of the Economic Development Authority of Western Nevada, was active in the early rounds of luring Tesla. He said now that Nevada is a finalist for the gigafactory, the challenge is at the state level.

But he believes Nevada's advantage against bigger states is its speed of process in permitting and construction with fewer governmental roadblocks.

"That's huge," Kazmierski said, citing Tesla's urgency to have the gigafactory operating in three years.

"But when you talk numbers, let's say we have $1 million to offer in incentives. For us to give $1 million is equivalent to Texas giving $30 million," he said. "Clearly, that is not our strength. Ours is our business climate and speed of government."

Competition

In May, Musk said Tesla would divulge starting in June which states would be finalists for the gigafactory. But while grading proceeded away from onlookers and Nevada officials remained mum, citing nondisclosure agreements, June and nearly all of July passed before Thursday's announcement.

Kazmierski said he has heard the reports that California, whose Legislature has been formulating a variety of tax and other incentives, has risen in recent weeks to the status of favorite. Besides being home to Tesla's corporate office, California houses Tesla's car-manufacturing plant in Fremont.

But he said Nevada remains viable, as shown in Tesla's work that started with a "clear and grub" permit pulled on May 22 for an unnamed project at 2641 Portofino Drive in the Tahoe-Reno Industrial Center, located 17 miles east of Sparks.

"Based on what we know, Tesla is still in the analysis and negotiation process," Kazmierski said. "I would be reticent to say anything's already been decided. At some point, they'll make a decision. In the meantime, we'll just work with whoever we need to, to make them see the advantages of this location."

Tahoe-Reno Industrial and Reno-Stead Airport were initially considered sites on Tesla's radar for the gigafactory.

But the center's size — more than 105,000 acres — and its access to California via nearby rail lines and Interstate 80 make it a powerful player in the fight, said its developer, Lance Gilman.

He said the grading work, which he described as "one of the largest grading projects ever in the U.S.," proves it.

"We have finished a superpad to accommodate 5 million square feet. We moved several million cubic yards of material," Gilman said of the work largely done in less than four weeks' time.

"There's nowhere else in the world you can get a project up as fast as here. Our risk is zero. Tesla can start pouring concrete next week if they so desire," he said.

"I'm sure they're looking at other sites. Is Nevada in the lead? Yeah, if you look at it as a horse race, we're light years ahead."

Reno Gazette-Journal reporter Anjeanette Damon contributed to this report.

10 numbers to know about Tesla and the gigafactory

$11.7 BILLION: The net worth of South Africa native Elon Musk, Tesla CEO/co-founder and largest shareholder, according to the Bloomberg Billionaires Index.

$4 BILLION-$5 BILLION: Tesla Motors' stated investment in the gigafactory by 2020, including $2 billion to build the facility.

$400 MILLION-$500 MILLION: The amount in benefits and incentives Tesla wants the state ultimately winning the gigafactory to provide.

10 MILLION: The maximum square footage Tesla estimates it needs for the gigafactory. That's nearly 10 times the size of Amazon.com's distribution center in Fernley.

500,000: The number of lithium-ion batteries the gigafactory is expected to manufacture a year by 2020.

6,500: The number of employees to work at the gigafactory that, if built in Northern Nevada, would make Tesla one of the region's top five biggest employers and bigger than International Game Technology.

500-1,000: Total acreage Tesla estimates it will need to house its gigafactory.

1856-1943: The life span of company namesake Nikola Tesla, a Serbian-American inventor, electrical engineer and pioneer in the use of electricity who has a museum in his name in Belgrade, Serbia.

2003: The year Tesla Motors Inc., was founded in Palo Alto, Calif.

2017: The year Tesla expects to have the gigafactory open and operating.

Source: RGJ research

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http://www.rgj.com/story/money/reno-rebirth/2014/07/31/numbers-know-tesl...

10 numbers to know about Tesla and the gigafactory

Bill O'Driscoll, RGJ 9:14 a.m. PDT August 1, 2014

-gigafactory.jpg_20140507.jpg

A rendering of the Tesla Gigafactory is shown. (Photo: Provided by Tesla Motors Inc. )

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10 NUMBERS TO KNOW ABOUT TESLA AND THE GIGAFACTORY:

$11.7 BILLION: The net worth of South Africa native Elon Musk, Tesla CEO/co-founder and largest shareholder, according to the Bloomberg Billionaires Index.

$4 BILLION-$5 BILLION: Tesla Motors' stated investment in the gigafactory, including $2 billion to build the facility.

THE RENO-AREA PLANT: We have Tesla, but can we keep it?

WATCH VIDEO: What you need to know about Tesla's announcement

$49.8 MILLION: How much Tesla Motors Inc. lost in earnings in the January-March period compared with an $11.2 million profit a year earlier.

10 MILLION: The maximum square footage Tesla estimates it needs for the gigafactory. That's nearly 10 times the size of Amazon.com's distribution center in Fernley.

500,000: The number of lithium-ion batteries the gigafactory is expected to manufacture a year by 2020.

500-1,000: Total acreage Tesla estimates it will need to house its gigafactory.

1856-1943: The life span of company namesake Nikola Tesla, a Serbian-American inventor, electrical engineer and pioneer in the use of electricity who has a museum in his name in Belgrade, Serbia.

2003: The year Tesla Motors Inc., was founded in Palo Alto, Calif.

2017: The year Tesla expects to have the gigafactory open and operating.

How a lithium-ion battery like Tesla's is made

Yvonne Beasley, RGJ 1:24 p.m. PDT July 31, 2014

REN0626 Tesla Batteries 04.jpg

Denis Phares, CEO of Dragonfly Energy, holds a battery at his workshop on Wednesday in Reno.(Photo: Hilary Swift/RGJ)

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Tesla is mute on all gigafactory details — including what, exactly, workers might do at a factory that's expected to be largely automated.

But Reno has an expert in Denis Phares is president and CEO of Dragonfly Energy, an award-winning lithium-ion battery startup.

Phares said there are a number of steps from raw materials to finished battery. Here's his rundown:

• First, there's some chemical preparation of the lithium materials.

• Then, materials are coated onto a foil substrate to make the anode and cathode.

• Then there's a step to dry the solvent out from that coating.

• Next, the foils are cut, slit and wound into a cylinder. Tesla cars use small cylinder cells, Phares said, so precision is key for the small size.

• Then, the cells are put into a case, which is filled with electrolyte and sealed.

• Next, testing is done to make sure the battery cycles.

"And then that's it. You've got a battery," Phares said.

Letter: Tesla should choose Nevada over Texas

9:04 p.m. PDT June 19, 2014

REN0620 Web letter Park photo

Elon Musk, CEO of Tesla Motors. (Photo: AP )

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CEO Elon Musk opened Tesla patents to nudge along the electric-vehicle industry, a move of exceptional good faith and foresight. It is this attitude that convinces me that Musk should ultimately choose Northern Nevada over Texas.

Texas is doing just fine with its oil. You don’t need Tesla. In fact, it’s almost antithetical that your big oil state would host an electric vehicle plant. Meanwhile, Northern Nevada is among the worst hit by the recession. We’re located 200 miles from the center of the Information Age. In the Industrial Age — where London was its center — would you locate your plant in Liverpool or Budapest? The technology that is core to electric vehicles is being more intensely developed in the Silicon Valley not San Antonio.

Cost-of-living and wages are lower here, and demand for jobs higher. Also, low humidity not only benefits the manufacture of lithium batteries but the longevity of complex machinery. Unlike Texas, we’re open-minded and friendly to outsiders. Northern Nevada makes sense both socially and economically.

As Mark Twain, one of our local legends once said, “It’s not the size of the dog in the fight, it’s the size of the fight in the dog.”

Ed Park, Reno

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