Leaders from Joplin, MO are offering one billion dollars in incentives and savings to Tesla in an effort to land Tesla’s new factory. The factory that will build its electric pickup truck dubbed “Cybertruck Gigfactory”, will manufacture the Cybertrucks and batteries.
According to the Joplin Area Chamber of Commerce, it would be worth $1 billion in incentives over 12 years.
The story has already received national recognition from sources like CNET, The Street, CNBC, and Electrek.
There are multiple benefits to placing business in this area of the nation.
Joplin Missouri’s location is right smack dab in the middle of the United States and Tesla would save a lot of money on shipping.
A big selling point is the low cost of labor in Joplin.
Battery technology is bigger in Joplin than in any other area of the country.
Joplin has more battery engineers than Nashville and Austin combined.
The schools in our area are the best in the state. The cost of living is 21% below the national average. Joplin has the two largest health systems, a medical school, and now a dental school.
Joplin also has the smallest metro in the United States with a mosque, temple, and church. Lakes, trails, music, arts, etc.
The all-around quality of life is very nice in this part of the country.
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.
The one billion dollar package of incentives and savings includes only the local incentive package, not the State of MO’s additional package. Includes ~$131M in property tax abatement (EEZ), ~$30M in sales tax on construction materials abated, and ~40M in equip. tax abatement.
Toby Teeter, chamber of commerce president told reporters during a briefing Monday
“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.
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.
A timeline wasn’t announced to choose a location for the factory, but should be soon since Tesla plans to bring the electric pickup truck to production late next year.
The project would bring an estimated 7,000 jobs to the area.