For Nevada, Tesla Motors represents an opportunity to show that its economy can diversify beyond gambling and housing. But at what price?
Nevada is offering incentives of almost $1.3 billion in exchange for Tesla building its $5 billion factory, and employing 6,500 people in Northern Nevada. Governor Brian Sandoval says the factory will add four percent to Nevada’s gross domestic product.
Over time, 4 percent translates into $100 billion in state gross domestic product.
But critics, including Los Angeles Times columnist Michael Hiltzik, say Nevada overpaid for a trophy deal with Tesla. Steve Hill, executive director of the governor’s office of economic development, has said you can take incentives to far, but not in this case.
Besides Tesla, Hill is also overseeing the state's efforts to attract health care, film and technology companies, as well as guiding the growth of Nevada's drone testing market.
GUEST:
Steve Hill, executive director Nevada governor's office of economic development.
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