Downside of Tesla Motors Inc (TSLA)’s $100 billion Economic Impact

By luring Tesla Motors Inc (NASDAQ:TSLA) with a $1.25 billion incentive package to set its Gigafactory in Reno, Governor Brian Sandoval may have sold Nevada’s soul to the devil. Anjeanette Damon, in an article published by Reno Gazette-Journal explores the strain that Tesla Motors Inc (NASDAQ:TSLA) is going to put on Reno’s already overloaded infrastructure. Something that Governor Sandoval should have perhaps considered before he entered into an agreement with Tesla.

Tesla Motors Inc (NASDAQ:TSLA)

When evaluating Tesla Motors Inc (NASDAQ:TSLA)’s impact on Reno’s infrastructure, it is very logical to start with water facilities in order to gauge the environmental effect that people living in the city will bear.

The deal that Sandoval expects will bring Reno $100 billion through Tesla Motors Inc (NASDAQ:TSLA)’s Gigafactory might deprive the city of a clean disposal of its effluents. Damon mentioned that according to an internal Reno memo the city’s sewage plant which it shares with Sparks can only take a very small number of additional residential hookups, 3800 to be exact. The plant was also fined earlier this month as it was overloaded and couldn’t treat the effluents properly according to Damon.

There is no doubt that there will be much more houses needed once the factory starts its operations. In fact an influx of 22,000 workers is expected in connection with Tesla Motors Inc (NASDAQ:TSLA)’s Gigafactory.

This will also have a bearing on the city’s security which was already trying to downsize on account of lack of funds. According to Damon, the city’s fire department was attempting to lay off 22 more fire fighters just before Tesla Motors Inc (NASDAQ:TSLA) announced its selection of Reno as its Gigafactory home. Needless to say that the city will now also have to bear the cost of additional police officers in order to step up security on account of higher number of residents.

Lastly, Tesla Motors Inc (NASDAQ:TSLA) has put the Regional Transportation in a tough spot too. Damon quoted Reno Gazette-Journal’s reporter, Jeff DeLong as writing just last week that the Transportation Commission has a $3 million annual deficit in its transit program.

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