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Gigafactory 1 passes compliance report; Nevada releases $11.5 million tax credits to Tesla
Nevada’s Executive Director for Economic Development, Steve Hill has confirmed that Tesla has met all requirements within the most recent compliance audit report and will receive $11,567,061 in transferable tax credits.
Rather than handing over the entire $1.3 billion in incentives to Tesla in 2014, Nevada unlocks tax credits to Tesla once the all-electric vehicle and energy systems manufacturer achieves agreed-upon benchmarks of job creation and investments. The compliance audit report which we’ve embedded below was conducted by Grant Thornton and is a review of third quarter, July 1, 2016 through September 30, 2016.
Pursuant to NRS 360.955 and the Tesla Motors Incentive Agreement (“Agreement”) the Governor’s Office of Economic Development (“Office”) has certified the fourth compliance audit of Tesla Motors, Inc. (“Tesla”)
for the period covering July 1, 2016 through September 30, 2016. The Agreement allows Tesla to report on a period shorter than one fiscal year. As such, the Office has determined all requirements have been met to issue to Tesla transferable tax credits totaling $11,567,061.
The audit assessed the following criteria:
- job creation totals: over 300 full-time employees
- percentages of employees who are Nevada residents: 91%
- Tesla’s total investment
In February, 2017, Storey County Community Development revealed that Tesla surpassed $1 billion in construction costs at the Gigafactory since the project began in 2014. Also in February, Hill revised job creation numbers at Gigafactory 1 to levels 54% higher than originally forecast.
It was also noted in the audit that Panasonic, Tesla’s strategic partner at the Nevada Gigafactory, had employed 50 workers on site in September, 2016, and 990 construction workers, of whom 55% were Nevada residents, were employed during the same time period.
Tesla broke ground on its Gigafactory in June 2014 and, by 2018, expects to reach full capacity and produce more lithium ion batteries annually than were produced worldwide in 2013. The battery cells will be used in the company’s line of energy storage products and the much anticipated Model 3 sedan. The new cell format, 21 millimeters in diameter and 70 millimeters long, provides significant improvements in energy density over the more traditional 18650 cells currently being used on its fleet of vehicles.
Tesla had also met its compliance audit in December 2016, in which 283 employees had been hired at the Gigafactory since the project began in 2014. At that time, 89 percent were Nevada residents and earned an average wage of $53.18 per hour. Panasonic, Tesla’s primary partner in the Gigafactory, had 48 employees on site, of which 92 percent were Nevada residents earning an average wage of $54.89 per hour.
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Tesla describes Gigafactory 1’s role in the overall company mission:
In cooperation with Panasonic and other strategic partners, the Gigafactory will produce batteries for significantly less cost using economies of scale, innovative manufacturing, reduction of waste, and the simple optimization of locating most manufacturing process under one roof. We expect to drive down the per kilowatt hour (kWh) cost of our battery pack by more than 30 percent. The Gigafactory will also be powered by renewable energy sources, with the goal of achieving net zero energy.
Tesla Gigafactory Compliance Audit Report via DiversifyNevada
[pdf-embedder url=”http://www.teslarati.com/wp-content/uploads/2017/03/Tesla_Motors_Audit_Certification_7.01.16_to_9.30.16_1.pdf”]
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Cybertruck
Tesla Cybertruck production snaps back after ugly supplier fight
Cybertrucks are piling up again at Giga Texas after Tesla’s court win against a parts supplier.
Cybertruck production at Giga Texas is showing its first visible recovery since Tesla sued a supplier last month over withheld manufacturing tooling.
Aerial observer Joe Tegtmeyer flew over the Austin factory Wednesday morning and counted roughly 100 or more Cybertrucks filling the outbound lot, a sharp jump from the thin numbers seen in recent weeks. The flyover came a day after a judge granted Tesla a temporary restraining order against Angstrom Automotive Group, the parts supplier at the center of the dispute.
Tesla filed an emergency lawsuit in late July after Angstrom told the automaker it planned to close the Troy, Texas facility where Tesla’s die-cast tools, trim dies and other Cybertruck stamping equipment were housed. According to Tesla’s complaint, a shipment of 700 finished parts never left the building, and when Tesla sent representatives to retrieve its equipment, accompanied by law enforcement, they were turned away. Angstrom allegedly then asked for an extra $250,000 a week to keep operating, which Tesla’s filing described as holding its own property for ransom.
TESLA: U.S. District Judge Christopher R. Wolfe of the U.S. District Court for the Western District of Texas, Waco Division granted Tesla a Temporary Restraining Order and Writ of Replevin in its dispute with Angstrom Automotive (Case No. 6:26-cv-00477).
The order authorizes… https://t.co/E1DKcQSxMn pic.twitter.com/LR8aAiV2Og
— S.E. Robinson, Jr. (@SERobinsonJr) August 5, 2026
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The restraining order gives Tesla immediate right of entry to Angstrom’s facility to recover the tooling. It is temporary, with a fuller hearing still to come, but the speed of Wednesday’s rebound suggests the Angstrom shortage was indeed the main bottleneck limiting Cybertruck output. Outbound lot counts are an imperfect measure of actual production, since finished trucks can sit for days before shipping, but a lot that full after a lean stretch is a meaningful signal.
Cybertruck output at Giga Texas has fluctuated all year as Tesla worked through supply issues and introduced new trims, including a cheaper Dual Motor AWD version that drew strong early demand.
Elon Musk
Space finally faced the people living next to its next Terafab mega-project
SpaceX confirmed Terafab’s Grimes County site is locked in, with construction starting within months.
SpaceX and Terafab representatives sat across from Grimes County residents for the first time on Wednesday, telling a packed Commissioners Court room that the $55 billion chip manufacturing project is now a done deal at the Gibbons Creek Reservoir site.
The meeting followed a $10 million check SpaceX sent the county earlier this week, satisfying a payment deadline built into the tax abatement agreement both sides signed in June. Elon Musk shared a post on X confirming the payment, and County Judge Joe Fauth told the San Antonio Express-News his office deposited the check after it beat its deadline.
Wednesday’s session, first reported by KBTX, moved the project from paperwork to construction. Terafab representative Riley Trennell told residents the JETI tax break agreements with Iola ISD and Anderson-Shiro CISD are signed and active, and that civil work and foundation prep are starting almost immediately. Renderings of the facility could be released within days, he said, with construction beginning within months.
The foundations for an exciting future are being built in Texas. Next up: Terafab → https://t.co/jGg52Zhn5I pic.twitter.com/SNfSXNr2tb
— SpaceX (@SpaceX) August 6, 2026
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
Musk first announced Terafab in March as a joint venture between Tesla, SpaceX and xAI aimed at producing over a terawatt of AI compute annually, an amount that dwarfs the roughly 20 gigawatts the entire global chip industry produces today. Intel joined as a manufacturing partner in April. Musk has said the project needed its own day in the spotlight rather than being squeezed into an earnings call, and for months the Grimes County site remained unconfirmed even as reporting pointed there.
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SpaceX attorney Buck Brannon used Wednesday’s meeting to note that the company’s abatement is roughly 78 percent, not the 100 percent some earlier reports suggested. In exchange, SpaceX will pay Grimes County a fixed $20 million a year for 35 years, a total of $710 million, which Brannon said exceeds the $14 million Tesla paid Travis County in 2025.
SpaceX also addressed environmental concerns that have followed the project since Musk’s Terafab partnership with Intel was announced. Representatives said Terafab will not raise electric bills for other ratepayers, will not deplete local water supplies and will not draw down the Navasota River. SpaceX confirmed it owns the Navasota River pumping station, which it plans to use to divert stormwater into the Gibbons Creek Reservoir, and said it will build its own natural gas plants to power the facility rather than pulling from the ERCOT grid.
Grimes County commissioners also approved an addendum letting county employees use ten approved AI chatbots for work, including Grok.
Elon Musk has declared that SpaceX has effectively solved one of Starship’s most persistent engineering challenges: the reliability of its heat shield tiles.
During the company’s first-ever Earnings Call, the SpaceX CEO stated:
“I don’t want to jinx it or anything, but I think I would call the heat shield problem solved at this point. All indications from data and visual inspection is we have solved it. That doesn’t mean we won’t make improvements, but we do not see any technical obstacles to achieving rapid reusability at this point.”
Starship’s heat shield consists of roughly 18,000 hexagonal ceramic tiles covering the windward side of the upper stage. These tiles form the thermal protection system that shields the vehicle’s stainless-steel structure from the extreme heat of atmospheric reentry.
Elon says he believes the heat shield problem with Starship is currently solved.
He called it “arguably the single biggest problem” pic.twitter.com/eEE9vM5zlz
— TESLARATI (@Teslarati) August 4, 2026
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During descent, atmospheric friction generates temperatures exceeding several thousand degrees Celsius and creates plasma flows capable of melting unprotected metal. The tiles absorb, radiate, and insulate against this energy, allowing the vehicle to survive and potentially fly again. Without a durable heat shield, full and rapid reusability, the cornerstone of Starship’s design for frequent launches, satellite deployments, and deep-space missions, would remain impossible.
The tiles have long been a source of difficulty. On earlier test flights, a significant number of tiles detached during ascent due to vibration, aerodynamic loads, and imperfect attachment methods using pins and adhesives. Gaps between tiles allowed hot plasma to infiltrate, causing secondary damage and hot spots on the underlying structure.
These issues echoed challenges faced by NASA’s Space Shuttle, whose ceramic tiles required extensive, labor-intensive inspections and replacements between missions, preventing rapid turnaround. SpaceX has iteratively improved materials, standardized tile shapes, refined attachment techniques, added secondary ablative layers, and tested sealing methods such as “crunch wrap” felt to close gaps.
Progress was visible across Flights 10–12, with steadily better tile retention, yet questions remained about whether the system could support the minimal-refurbishment goal of rapid reuse.
Flight 13 on July 24 provided the decisive evidence. Ship 40 flew a deliberately more demanding profile with higher dynamic pressure to stress the heat shield beyond typical operational loads. It successfully deployed 20 operational Starlink V3 satellites, the first such payload on a Starship mission, performed an in-space Raptor engine relight, and executed a controlled reentry.
Elon Musk sheds two new bits of detail on Starship after 13th test launch
Cameras on six of the satellites and onboard sensors captured extensive imagery and data of the shield throughout the flight. The ship then achieved its softest splashdown to date in the Indian Ocean, remaining intact and floating rather than breaking apart or exploding as on prior missions. This allowed drone inspections and continuous telemetry of the heat shield in near-real time.
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Post-flight analysis showed the majority of tiles remaining attached with only minor damage and limited plasma streaking at seams. Musk noted that the mission delivered “all the heat shield data we needed and then some.” Combined with visual inspections, these results underpinned his subsequent assessment that the core technical barriers to rapid reusability have been cleared. While refinements will continue, Flight 13 marked a pivotal step toward Starship’s operational future.
Tesla Cybertruck production snaps back after ugly supplier fight
Space finally faced the people living next to its next Terafab mega-project
