TESLA MODEL 3

The Extended-Range Nissan Leaf

July 6, 2020 by admin 1 Comment

You can charge a Nissan Leaf at most any Nissan dealership. Here, the Leaf is connected to a fast-charging unit at Leith Nissan in Cary, NC.

We’re fairly certain that a large number of American consumers are intrigued about electric vehicles, but most won’t buy one. The reasons for avoiding the technology usually has to do with several factors, including the initial cost, driving range, and charging options. When combined, these factors have a significant number of consumers giving EVs a hard pass.

But we’ve seen some movement toward electric vehicles as more models come to the market. Thanks largely to Tesla, which produces nothing but pure electric vehicles and does so in mass quantity, the costs, range, and charging options are increasingly less of a factor.

Nissan, for its part, has made significant strides since releasing its Leaf EV in 2011. Today’s model, the second-generation version, costs less, supplies a competitive range, and benefits from a wider network of charging stations, thanks in no small part to Nissan dealerships who offer free charging stations, including quick-charging access.

Nissan offers the 2020 Leaf in standard and Plus editions, defined by the size of the electric battery. The S ($31,600) and SV ($34,190) models come with the 40-kWh battery. The S Plus ($38,200), SV Plus ($39,750), and SL Plus ($43,900) have the 62-kWh battery pack. The standard models have a 149-mile range, while the Plus models deliver 215 or 226 miles of range.

Styling Points

The current-generation Nissan Leaf has lost many of the styling cues that set this vehicle apart from the pack. And that’s a good thing if you don’t want your electric vehicle to look odd.

Instead, the current iteration blends well with the rest of the Nissan line, right down to the “V-motion” grille upfront. But it isn’t the usual functioning grille – it simply serves as the styling point for the vehicle’s front end.

As a five-door hatchback, the Leaf nearly matches the compact Sentra in size. Its interior, however, shows judicious use of space, offering seating room for five. Indeed, the EPA classifies this vehicle as a midsize model, although Nissan’s true midsize sedan, the Altima, offers more space.

Tech Highlights

The base Leaf “S” comes with an 8-inch touch-screen display and a four-speaker audio system. The SV comes with a 6-speaker audio system, while the SL kicks off the Bose 7-speaker unit.

Other standard features include Apple CarPlay and Android Auto smartphone compatibility, satellite radio, HD Radio, Bluetooth, Siri Eyes Free, and three USB ports. If you want navigation, it’s standard beginning with the SV trim. But you don’t need it – your smartphone serves directions at no cost beyond the phone itself.

Safety Matters

Automotive manufacturers continue to outdo one another by developing the technologies that help keep us safe. These features go well beyond the suite of airbags, crumple zones, stability and traction control, and other advances we have seen over the past 25 years.

The Nissan Leaf comes with driver-assist technology, bundled under the Nissan Safety Shield 360 umbrella, and it comes standard. These features include high-beam assist, automatic emergency braking with pedestrian detection, lane departure warning and rear automatic braking, rear cross-traffic alert, and blind-spot warning.

If you want adaptive cruise control, every trim except the base “S” comes with this feature. It’s one of our favorite driver-assist items as it not only maintains separation between the Leaf and the vehicle in front, but it includes full stop and go. This means once your vehicle is brought to a full stop it resumes speed as soon as the vehicle in front begins moving.

One more safety amenity worth having is ProPilot Assist, which bundles select driver-assist features that serve as a forerunner for autonomous driving. Besides adaptive cruise control, the package includes steering assist. The latter keeps the vehicle centered even as you tackle twisty roads. You’ll keep your hands on the wheel, but you’ll also detect the steering wheel making adjustment inputs automatically. We found the system works well, by keeping this hatchback centered at all times.

It is a quick and easy connect to replenish the Leaf’s battery system.

Performance Chops

How do you evaluate electric car performance? Well, it just isn’t the same as models powered by an internal combustion engine.

Firstly, you don’t have the roar of an engine to light a fuse under your seat. Push the start button and you’ll be greeted with silence other than the clicking of the instrument panel and other interior features as they’re activated.

Second, the whole purpose of the Leaf is based on efficiency, which comes exclusively from electricity. There isn’t a backup gas generator to move it or add power, you must rely exclusively on the electric battery system for thrust.

That thrust comes in two forms: either a 40-kWh battery system or a 62-kWh battery system. The first one generates 147 horsepower and 236 pound-feet of torque; the second one makes 214 horsepower and 250 pound-feet of torque. Most of us know that horsepower is what gets a vehicle going, while torque delivers the power after the initial burst.

What’s so neat about electric vehicles is that torque kicks in very low on the power curve. In fact, with the standard Leaf, that boost is instantaneous – right at 0 RPM (800 for the Plus). That’s amazing! What’s also amazing is that the Leaf may be your perfect stealth car – it blends in with other hatchbacks, but once you hit the accelerator, it moves forward with neck slapback speed.

Under full power, you’ll notice some understeer as the front wheels shift slightly before regaining composure. The Leaf in Plus form weighs nearly two tons. That’s a lot of weight to carry, but it also helps the Leaf stay planted. Even so, when you need to move down the highway with precision, you can do it. We found the steering nicely weighted with good handling and a comfortable ride.

One feature worth activating is E-Pedal. It’s an innovative feature that converts the Leaf into a one-pedal driver. Specifically, once it is set in place, the E-Pedal automatically and rapidly slows the Leaf when you remove your foot from the accelerator. Likewise, there is no need to use the brake, except under emergency conditions.

Why is this advantageous and when should you use it? It’s advantageous because it reduces driver fatigue and mitigates brake wear. You won’t need to replace pads as often and you’ll also see less wear and tear on the calipers and rotors. Likewise, it should prove less taxing on the tires. That’s a huge win all around!

The Collision

Years of driving press fleet vehicles mean I’ve seen a lot of things while on the road including burned-out cars, near misses, and the occasional accident, sometimes with deadly consequences. That’s par for the course for anyone who is regularly on the road and one important reason why I typically avoid thickly settled areas as much as possible.

But getting to and from population centers means traversing busy roads, which always has this driver on heightened awareness. That said, we’re still at the mercy of factors not under our control, including road construction, errant wildlife, and the behavior of other drivers.

That last factor hit home in a big way when I found myself on the homeward bound portion of a circuits route after making my one planned stop. The road conditions were ideal (open and moving at highway speed), but suddenly changed as a cloudburst let loose and the two lanes gradually merged to one in advance of a road construction project.

Ample signage warning ahead of time meant traffic began to slow and merge, but the wet roads soon played an overarching factor in drivability. In fact, the traffic quickly slowed to a standstill as the declining weather and challenging road conditions converged.

Seemingly out of nowhere, I heard a crash, then I looked through the rearview mirror and immediately felt a sickening sensation as I observed a white SUV careening toward me. With just a second or two to prepare, I braced myself as the SUV slammed into the back of the Leaf while I was stopped in the left lane.

“Oh, shoot!” I uttered to no one but myself. I placed the Leaf in park and activated the emergency blinkers. Next, I got out of the car and checked with the passengers in the vehicle behind me, not thinking about the Leaf’s damage. Most of the injuries were light, but just like the passengers in the vehicle that set off the chain of events, everyone was a bit shook up.

That first vehicle, a 2005 Dodge Durango, sustained the most damage as its front bumper was pushed in and the hood was crushed and left partially hanging on the road. The middle vehicle took the brunt of the damage as it was first hit from behind before slamming into the Nissan. That 2008 Chevrolet Equinox, though, held up better than the Dodge.

As for the Nissan Leaf, the damage was surprisingly light with a broken bumper, punctured tailgate, and a disconnected rear quarter panel the extent of the problems. Where the two other cars were towed away, the Leaf showed no signs of structural damage and yet was drivable.

The Competition

There are many electrified vehicles on the market, but most are hybrids or plug-in hybrids. The most well-known competitor is the Tesla Model 3 followed by the Chevrolet Bolt. Both models supply a longer driving range than the Nissan. For instance, the Bolt clocks in at 258 miles.

The Kia Niro Electric, Hyundai Kona EV, BMW i3, and the Fiat 500e are others on the list, but some are compliance cars designed to help manufacturers meet various state edicts.

Our Recommendation

We can’t recommend the standard model for anyone who places a value on range. That said, if you live in an urban area and your daily driving is measured in local trips only, then by all means consider one and pocket the savings. This means the base model will cost you about $24,300 plus destination and taxes if you’re eligible to claim the $7,500 federal tax credit. State and local incentives may reduce your costs further.

2020 Nissan Leaf Specifications

Sticker price from $31,600 (plus $925 destination fee)
Price as tested: $45,900
Seats 5 passengers
First EV System Choice:
High-response 110-kW AC synchronous electric motor
40-kWh laminated lithium-ion (Li-ion) battery, 192 cells
147 horsepower @ 3,283 ≈ 9,795 RPM
236 foot-pounds of torque @ 0 ≈ 3,283 RPM
Second EV System Choice:
62-kWh laminated lithium-ion (Li-ion) battery, 192 cells
214 horsepower @ TBD RPM
250 foot-pounds of torque @ 800 ≈ 4,000 RPM
Single speed reducer automatic transmission
Wheelbase: 106.3 inches
Length: 176.4 inches
Width: 70.5 inches
Height: 61.4 or 61.6 inches
Passenger volume: 92.4 cubic feet
Storage volume: 23.6/30.0 cubic feet
Towing capacity: NR
Range: 149 (40 kWh) or 215/226 (60 kWh)
Curb weight: From 3,538 to 3,946 pounds
IIHS safety rating: Incomplete
Limited (new) vehicle warranty: 36 months/36,000 miles
Corrosion warranty: 60 months/unlimited miles
Battery warranty: 8 years/100,000 miles
Vehicle assembly: Smyrna, Tennessee

See Also — Longer Range Nissan Leaf Debuts at CES

First Half 2017 US Auto Sales Highlights

July 3, 2017 by admin 1 Comment

Sales are down, but a few manufacturers are enjoying success.

June’s auto sales figures came out today and for people taking an extended four-day weekend to celebrate America’s Independence Day, poolside chatter may have silenced the news.

Nevertheless, some of us are on duty — including yours truly — tracking certain auto trends or should I say sales trends, which we’ll amplify here.

To that end, the following are the chief takeaways for the first six months of the year as well as my guess on what the remainder of the year may look like.

2018 Volkswagen Tiguan — New models such as the 2018 Tiguan should help Volkswagen finish strong this year.

1. The sky isn’t falling, but sales are slipping.

US auto sales are down 2.1 percent year-to-date through June 2017, what represents only a modest decline (8,456,896 v. 8,641,718). Still, experts now see yearly sales falling short of the 17 million mark and that concerns some.

One big concern doesn’t have much to do with sales numbers, but how those numbers come about. Specifically, customers are buying in part because of big, costly, profit-eating incentives. Coinciding with June’s sales release story, Automotive News reported that the average new car incentive offered by manufacturers was $3,550 in June, up slightly over the previous month, but 9.7 percent higher than a year earlier.

Price discipline is something automotive executives talk about and insist that they’ll follow as sales begin to slide. But, if the dam breaks, incentives may push ever higher — that’s terrific news for consumers, but not so much for each automaker’s bottom line.

2017 Lincoln Continental — Continental sales continue to power Lincoln’s renaissance.

2. Is Tesla on the brink?

Tesla Motors has long enjoyed out-sized news coverage despite its relatively minuscule sales. Indeed, for a company that recorded just 22,000 units sold in the second quarter, it is receiving a lot of press. As a point of comparison, Ford sells as many F-150s in about 10 days.

But Tesla is the darling of the stock market, environmentalists, and technology fans, so it merits attention. Moreover, CEO Elon Musk dropped a bomb today when he said that the Tesla 3 is ready for production, with the first model slated to roll off an assembly line this Friday according to Reuters. This means the $35,000 sedan has received federal approval and the first 30 people who ordered one will take delivery by the end of the month.

Importantly, this will be the first time Tesla released a model on time. Also of importance, the all-electric automaker anticipates production ramping up fairly quickly, hitting 20,000 units per month by December. Heck, this long-time doubter may soon become a true believer if Tesla pulls this off.

Tesla Model X sales may quickly fall behind Model 3
sales when the compact sedan debuts this month.

3. What’s up with Jeep?

Fiat Chrysler is not having a banner year. Sales are down 6.7 percent with only Ram (up 7.6 percent) showing an increase year to date. This also means Jeep is down and that brand’s 12.7 percent sales drop accounts for more than half of FCA’s first-half pull back.

That Jeep sales are down is a curiosity. Customers are shifting their purchases to SUVs and that’s all that Jeep makes. A new Compass is out, but sales are down by 49 percent. Patriot sales are also down by 49 percent, but that model is being phased out. Cherokee sales are down 19 percent and that represents yet another drag on the brand.

The good news for Jeep is that an all-new Wrangler is due by year-end. That release alone will begin to turn around sales, but it may not be enough to offset the earlier losses.

Two overarching concerns about the brands are as follows: 1), Jeep pricing is high on some models, such as the Cherokee. Customers are price sensitive and will look elsewhere if they find a better deal. 2), Jeep quality routinely trails nearly everyone. Although the quality wasn’t a factor when sales were robust, it may be a larger factor than before.

2016 Jeep Renegade — Renegade sales aren’t enough to offset Jeep’s decline this year.

4. Nissan may overtake Honda.

In most every other market in the world, Nissan outsells Honda. In the US, Honda almost always beats Nissan and in some years, decidedly so.

Nissan has started the year strong before, only to see Honda slip past them once summer ends and sales pick up steam in the fall. That happened last year, but this year things are looking up for Nissan. And we’re not including Mitsubishi sales in that number even though Nissan now has a controlling interest in the junior automaker.

Last year, Nissan had a 5,700-unit lead at the halfway mark. This year, its edge is almost 20,000 units. Rogue sales alone may give Nissan the victory as sales are up a whopping 31.4 percent to 195,689 units. There’s a very good chance Rogue sales will top 400,000 units, even dethroning the Toyota Camry as America’s best-selling “car” in the process.

2017 Nissan Rogue — This compact Rogue is helping Nissan to a greater share of the sales pie.

Moving Forward

My best guess is that sales will fall this year and could take a nasty tumble if the stock market has a major correction. Automakers say they always anticipate a drop, but until it happens, they plan for ever-increasing sales.

Nissan, Jaguar Land Rover, Subaru, and Volkswagen seem like the best bets to gain share this year, along with specific brands such as Ram, Buick, Lincoln, Audi, and Porsche also benefiting.

See Also — US Auto Trends: First Half 2016

Chevrolet Bolt Will Beat Tesla Model 3 to Market by at Least a Year

April 11, 2016 by admin 1 Comment

GM will have at least a year advantage to make a case for the Chevrolet Bolt. Will it be enough to convince EV fans?

The big automotive news since the beginning of this month has been all about the Tesla Model 3, the next vehicle coming from America’s electric car manufacturer.

On March 31, Tesla CEO Elon Musk unveiled a prototype of the compact sedan and immediately tens of thousands of people placed $1,000 refundable deposits on a car that won’t arrive until late 2017 at the earliest.

By late last week, the so-called pre-orders (advanced orders) totaled 325,000 and included early adopters from around the world. That’s a staggering number of people demonstrating interest in a car some believe will help make electric vehicles mainstream within the next few years.

Although Tesla is receiving much-deserved press, perhaps the attention should now turn to GM and what this company is doing to bring electric vehicles to the masses.

2017 Chevrolet Bolt

Indeed, the Chevrolet Bolt is on its way and will arrive on the market before 2016 comes to a close — a full year before the Tesla Model 3 arrives. For this reason alone, the Bolt is worth discussing.

Furthermore, there is a very good chance the Model 3 will miss its target date — we’ve heard Musk set ambitious goals in the past, only to delay them by months, if not years. Witness the long wait for the Tesla Model X SUV, arriving on the market more than two years after Musk promised.

Mainstream Electric Vehicles

Both the Chevrolet Bolt and the Tesla Model 3 will do something that no other electric vehicle has done thus far, including the groundbreaking Nissan Leaf. Specifically, range anxiety, an important detriment to consumer consideration, will be largely alleviated thanks to improvements in battery technologies.

In fact, GM promises 200 miles of range for the Bolt or about twice the distance of the Nissan Leaf’s current limits. Similarly, the new Tesla will deliver a projected 215 miles of electric driving. That both vehicles are priced in the $35,000 to $38,000 range is important too — with federal and state incentives available to qualified buyers, the two models may parallel the cost of buying a similar gasoline-powered model.

Electric Vehicle Proviso

Before we become all giddy about electric vehicle mainstreaming it is important to note one highly significant caveat — the range numbers are realized when an electric vehicle is operated in optimum weather conditions, such as at 77 degrees Fahrenheit. At the extremes, especially in sub-freezing driving, vehicle range may fall dramatically.

For instance, the Environmental Protection Agency (EPA) found that fuel economy for hybrid electric vehicles “…can drop about 31% to 34%…” under extreme conditions. Given that hybrids and electric vehicles share similar battery componentry, that 200-mile range may fall to 130 miles.

That’s still better than the range limits for today’s crop of mainstream electric vehicles, nevertheless it is a constitutive matter that should not be easily dismissed.

On Closer Inspection

As for the Chevrolet Bolt, what we have here is a five-passenger, front-wheel drive five-door compact electric vehicle. Its battery, motor, and drive unit will be manufactured in Incheon, Korea. Final assembly will take place in Orion Township, Michigan.

The Bolt’s battery system is composed of a rechargeable storage system comprised of multiple linked modules. The 60-kilowatt lithium-ion system contains 288 cells. As for the drive system, a single permanent magnetic drive motor and gear set will be utilized.

In all, the Bolt should provide 200 miles of electric driving range, make 200 horsepower with an output of 266 foot-pounds of torque. This model’s 0-to-60 mph time should come in at just under 7 seconds with a top speed of 91 mph.

Taking long trips with an electric vehicle means finding a public charging station and making the connection. Although a 240-volt connection adds 50 miles of range in under two hours, customers will be on the hunt for an SAE combo DC fast charge connection, what adds 90 miles in about 30 minutes. That’s long enough for most people to take a meal break before continuing on with their journey.

Tesla Model 3 Advantages

Some people have argued that the Tesla Model 3 has several advantages over the Bolt, including its slightly longer range as well as the free Tesla charging network. Certainly, an estimated 15-mile range advantage is welcome, but it isn’t significantly better than what the Bolt should deliver.

And as for connecting to the Tesla supercharger network, Model 3 owners will have access. What isn’t known yet is whether they’ll have to pay for it points out Teslarati. With far more customers queuing to tap the network, imagine the lines that may form in some places, especially in car-crazy California.

Fully Revealed Bolt

Another matter not settled with the Model 3 is what the interior will look like. Tesla’s introduction focused on the vehicle’s exterior (sans grille) and provided only a cursory examination of the cabin. Musk took to Twitter in the days following the big unveiling and addressed those concerns, noting that a followup reveal will show what the automaker has in mind.

As for the Bolt, GM has revealed several things about this EV, especially from a technology standpoint.

Specifically, the Bolt will feature a 10.2-inch Chevrolet MyLink color touchscreen display. GM describes it as a customizable, widget-based with a flip-board style operation.

A rear view camera will be standard, but what may be most fascinating is “surround vision” providing a bird’s-eye view of what’s around the Bolt, a safety advantage realized when driving at low speeds as well as when parking.

App, Navigation, and Gamification

Chevrolet Bolt owners will also have access to the MyChevrolet Mobile App, proving owner and vehicle information and functions, including remote start, vehicle charge status, cabin pre-conditioning, and other features.

To aid drivers as they search for charging stations, the Bolt’s navigation system will be geared toward finding the most efficient routes and provide locations of nearby charging stations, if needed. And in acknowledging the growth of vehicle connectivity and “gamification,” Bolt owners will eventually be able to “compete” with each other by comparing driving styles, including identifying who is the most efficient. That feature won’t become available until sometime after the Bolt arrives.

Chevrolet v. Tesla

GM is a pioneer in electric vehicles, although its 1990s EV-1 never made it into full production. Introducing its plug-in hybrid electric Chevrolet Volt in 2011 has given this automaker an important advantage over most other traditional automakers.

On the other hand, Tesla Motors is the industry’s disruptive force and so far is winning the hearts and minds of the media, the people who plan to buy the Model 3, as well as individuals who might never have considered an EV in the past, but are intrigued by all things Tesla. GM will have at least a year’s lead time to make a case for the Chevrolet Bolt for what may very well be the most important product introduction of our day.

See Also — Give Me a “B” for Chevrolet Bolt

Photos courtesy of General Motors Company and Tesla Motors.

Chevrolet Bolt Concept to Production Reality?

February 10, 2015 by admin Leave a Comment

At the North American International Auto Show in Detroit this past Jan., General Motors took the wraps off of a concept vehicle called the Chevrolet Bolt. Unlike the Chevy Volt, a plug-in hybrid electric vehicle, the Bolt is a pure electric vehicle and one with a projected 200-mile range.

Chevrolet will continue to tease the Bolt at major auto shows in Chicago and New York over the coming few months to gauge customer reactions. GM, however, may not wait that long to move this vehicle from concept to production reality as Auto Trends has learned that the tiny EV allurement may soon become the 2017 Chevrolet Bolt.

Here is what is moving or at least is not impeding GM from building the Chevrolet Bolt:

1. Low gas prices are not a factor.

Consider today’s low fuel prices a blip, one that will soon be forgotten. Sure, prices may stay below $3 per gallon through the summer, but the long-term forecast has prices rising above $4 to about $5 per gallon in about five years.

Demand for the Chevrolet Bolt would be lower if it were sold now, but by the time it goes into production the market should change.

2. EPA fuel standards march on.

The move towards a 54.5 mpg fleet average continues apace. As it stands right now, no car manufacturer can possibly meet that average without a line of EV or hydrogen models to offset the Silverados, Suburbans and Traverses that consumers are buying — and the lion’s share of the profitable vehicles at that.

In the odd world of EPA fuel estimating, just one Bolt sale can offset two or three large pickup truck or utility vehicle sales.

3. In the Bolt, GM has the perfect Tesla fighter.

Each of the larger manufacturers is keeping a close watch on the fortunes of Tesla Motors. Tesla has promised a low-cost EV — the Model 3 — that they say is expected to retail for around $35,000. If Tesla can reach a price point that is half the cost of the Model S, then it expects to avail EV buying to far more consumers.

GM’s approach has the Bolt priced around $30,000. With a $7,500 federal tax credit, a net cost of $22,500 would be possible for some consumers. That’s close to the cost of a Chevrolet Cruze.

4. Tesla may not be around for long anyway.

News about Tesla Motors far outstrips what this EV manufacturer produces. Clearly, Tesla is the darling of EV enthusiasts and all who embrace environmental sustainability. Yet, the company is not an ideal business model unless its reliance on government handouts and its strange accounting practices makes it so.

Tesla is valued between $25 and $30 billion, or about half the worth of GM. Tesla, however, produces fewer than 30,000 vehicles per year, while GM is closing in on assembling 10 million vehicles in 2015. The promised Model X crossover is still not out and we have yet to behold the Model 3 in concept form. Meanwhile, Tesla’s competitors are each building or planning new models that may squeeze the life out of Tesla (e.g., Toyota Mirai, Hyundai Tucson FCEV, and a host of newer and more efficient hybrids).

5. Politics may loom large.

Not a few of the changes that have benefited Tesla since its inception have come under Obama’s watch. The president’s term is up in Jan. 2017, just ahead of when production of the Bolt will commence. The Tesla Model 3 will come to the market a year or more later and by then the political pendulum may swing to the right regardless who wins the presidency. That doesn’t portend a Republican president ditching EV support, but it could mean that the federal tax credit for EVs could be muzzled.

Further, the 54.5 mpg fleet average might be postponed. And not that either political party is looking to slash the defense budget or allocate additional funds for green engineering and transportation infrastructure. Also, there is the matter of the national debt, what rose by 71 percent under President George W. Bush and has soared by more than 100 percent under President Barack Obama. The day of economic reckoning has long been delayed — when it arrives the smaller and weaker industry players may be swept to the side.

About the Chevrolet Bolt

So, what is it about the Chevrolet Bolt that has it a potential player in the EV market? Of course, price is an obvious factor, but reaching a 200-mile driving range should bring in buyers that otherwise would never consider an EV.

Then again, GM would need to execute the build process to meet or exceed the concept’s design. In the concept, GM made use of lightweight materials, advanced technologies, including a 10-inch capacity-touch screen, and a roomy, utility vehicle matching layout that may have this model competing closer to the Tesla Model X than the Model 3.

To sum up, the Chevrolet Bolt is one concept that is easy on the eyes, a potential game changer with its EV range and affordable option that could very extend EV ownership to the masses.

Photos courtesy of General Motors Company.

Huge Tax Breaks Overshadow Tesla’s Gigafactory Deal

September 9, 2014 by admin Leave a Comment

Tesla Motors announced late last week that it had chosen a location near Reno, Nevada, for its highly-anticipated gigafactory. The state-of-the-art manufacturing plant will assemble lithium-ion batteries with build partner Panasonic.

The new factory will be built in the Tahoe Reno Industrial Center near Sparks. It represents a $5 billion investment, but also comes with huge state tax breaks reports the Los Angeles Times.

Tesla Gigafactory

Gigafactory Tax Incentives

The tax breaks include 10 years of property and modified business tax abatements and 20 years of sales tax abatement. The company will also receive a transferable tax credit of 5 percent for the first $1 billion it invests in Nevada. Beyond that, the next $2.5 billion invested would yield a further 2.8 percent tax credit. All told, Tesla’s investment may be offset by a whopping $1.25 billion tax relief scheme courtesy of Nevada’s taxpayers.

The agreement received the backing of Nevada Gov. Brian Sandoval and the state’s legislature, which still must formally approve the initiative. The Republican governor claimed that the deal will pour $100 billion into the state’s economy over the next 20 years, but critics from both sides of the political aisle have disputed his point. State lawmakers are expected to approve the incentives, what some insist are much too generous.

In light of the criticism, Tesla Motors CEO Elon Musk noted that Nevada was one of five states making offers for the gigafactory. He also said that Nevada’s incentive package wasn’t the largest received, but he did not identify the state with the better offer. Musk added that getting the factory online by 2017 was the deciding factor, not incentives, with Nevada officials successfully outlining how that would happen.

Thousands of New Jobs

Musk made his announcement with Sandoval at a press conference in Carson City. Said Musk, “The Gigafactory is an important step in advancing the cause of sustainable transportation and will enable the mass production of compelling electric vehicles for decades to come. Together with Panasonic and other partners, we look forward to realizing the full potential of this project.”

The factory is expected to create 6,500 direct jobs, each paying $25 per hour. The deal should create an additional 16,000 jobs for construction workers and suppliers. Tesla also committed to making a $37.5 million contribution to the state’s K-12 school system and will provide $1 million in funding to the University of Nevada at Las Vegas (UNLV) for advance battery research.

Tesla Model 3

When the factory is complete it will supply batteries for Tesla’s all-new Model 3 line, a mass-market sedan that will be priced around $40,000 or half the cost of the Model S. The company has already begun production of the Model X at its factory in Fremont, California, its first utility vehicle. Tesla started electric vehicle production in 2008 when it briefly built the Tesla Roadster.

States providing manufacturing subsidies is nothing new nor are charges of “corporate welfare” levied by both sides of the political spectrum.

On the right, Forbes magazine contributor Patrick Michaels of the Cato Institute said, “if Tesla would stop selling cars, we’d all save some money.” US taxpayers have been footing the bill to the tune of a $7,500 tax credit per vehicle as well as other incentives.

Left-leaning Mother Jones magazine is another Tesla critic noting, among other things, that the company narrowly avoided insolvency early on when it consumed tens of millions of dollars in deposits while delivering just 50 vehicles as the Roaster was introduced. The magazine has pointed out repeatedly that Tesla exists because of government largesse, including a lucrative government loan package. Musk has countered his critics by insisting the company would still be around with or without its US Department of Energy-backed loan.

Owning the Narrative

Critics aside, Musk has managed to control the narrative by focusing on Tesla’s innovations, the high-quality cars it builds and the positive impact its vehicles have on the environment. He may be a huge Obama supporter, but he also knows how to win support from Republicans, something he demonstrated quite capably with Gov. Sandoval.

Manufacturing plant photo copyright Tesla Motors.

Tesla Model X Unveiled and Explored