Elon Musk Explains Why Tesla's Free Chunk Of Nevada Was No Handout

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Tesla Motors CEO Elon Musk is "flattered" that people seem to think he swindled Nevada out of prime real estate for his Gigafactory, but he's written a post explaining why he thinks the state still comes out on top.

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Basically, he breaks down how he sees the deal working in the bigger picture.

"Of the $5 billion investment needed to bring the Gigafactory to full production in five years, state incentives will cover about 5%. Compared to the operational and upgrade costs over a 20 year period, expected to be approximately $100 billion, state incentives will constitute just over 1%. This makes sense: the $1.3 billion in incentives mostly consists of alleviating a few percent of annual property and use tax on a huge amount of equipment over the course of 20 years, an average of about $50 million per year after initial construction."

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Read the rest of what he has to say on the Tesla Motors blog right here:

'The House Always Wins' –Elon Musk, Tesla Blog

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