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Tesla seems to have avoided potential $41M headcount penalty at Buffalo Gigafactory

Tesla Gigafactory New York (Credit: Tesla)

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It seems that Tesla will avoid a massive $41.2 million penalty from the State of New York. The electric automaker and energy storage company has met an employment headcount figure that was agreed upon by the two entities years ago, but it will not be finalized until the year ends.

New job figures from the State of New York Bureau of Labor Statistics indicate Tesla has 1,536 current full-time employees and 21 part-time positions. These figures were accurate as of November 10 and would put Tesla over the required number of jobs it needed to fulfill to avoid the massive fine. Tesla needs 1,460 employees to avoid the fine, according to Buffalo News.

Tesla under the gun to create jobs at Gigafactory 2 in Buffalo, NY as countdown begins

The employment numbers are not official, according to state officials, who also added that the penalty will be applied based on the number of jobs Tesla holds at the Buffalo Gigafactory on December 31. Tesla will avoid the penalty if it does not require a sizeable round of year-end layoffs that would put the company back under the required employment threshold.

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Tesla and the State agreed to the employment figures as a part of the Buffalo Billion economic development initiative, which requires the company to have a set number of jobs in the City. There are no requirements related to salary or type of job; Tesla just needs to verify that it employs as many or more than 1,460 employees at the plant.

Gigafactory New York, or Gigafactory 2 as it was formerly referred to, is where Tesla builds components for its Superchargers, along with inverters for its battery products. Recently, Tesla hired a significant number of employees to work on its autonomous and Full Self-Driving programs. Some of the positions are not directly related to software development or Neural Network applications. Many are for data annotation, which does not require a college degree. Tesla and SolarCity, a solar panel company the automaker acquired in 2016, also had agreements with New York that removed a portion of the contract that required the creation of 1,440 jobs at suppliers and service providers locally.

A series of extensions have also been granted by the State to allow Tesla to meet its job requirements, but they were related to the COVID-19 pandemic, which derailed employment opportunities across the country as industries came to a sudden halt. The first was in 2020, and the other was in April 2021. The latter extension allowed Tesla to have until the end of the year to meet its contractual obligations.

Tesla and the State of New York still have a 10-year job commitment for the factory, which moves the job creation schedule forward in accordance with the agreement.

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Tesla Powerwall distribution expands in Australia

Inventory is expected to arrive in late February and official sales are expected to start mid-March 2026.

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Credit: Tesla

Supply Partners Group has secured a distribution agreement for the Tesla Powerwall in Australia, with inventory expected to arrive in late February and official sales beginning in mid-March 2026.

Under the new agreement, Supply Partners will distribute Tesla Powerwall units and related accessories across its national footprint, as noted in an ecogeneration report. The company said the addition strengthens its position as a distributor focused on premium, established brands.

“We are proud to officially welcome Tesla Powerwall into the Supply Partners portfolio,” Lliam Ricketts, Co-Founder and Director of Innovation at Supply Partners Group, stated.

“Tesla sets a high bar, and we’ve worked hard to earn the opportunity to represent a brand that customers actively ask for. This partnership reflects the strength of our logistics, technical services and customer experience, and it’s a win for installers who want premium options they can trust.”

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Supply Partners noted that initial Tesla Powerwall stock will be warehoused locally before full commercial rollout in March. The distributor stated that the timing aligns with renewed growth momentum for the Powerwall, supported by competitive installer pricing, consumer rebates, and continued product and software updates.

“Powerwall is already a category-defining product, and what’s ahead makes it even more compelling,” Ricketts stated. “As pricing sharpens and capability expands, we see a clear runway for installers to confidently spec Powerwall for premium residential installs, backed by Supply Partners’ national distribution footprint and service model.”

Supply Partners noted that a joint go-to-market launch is planned, including Tesla-led training for its sales and technical teams to support installers during the home battery system’s domestic rollout.

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Tesla Megapack Megafactory in Texas advances with major property sale

Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet.

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Credit: Tesla

Tesla’s planned Megapack factory in Brookshire, Texas has taken a significant step forward, as two massive industrial buildings fully leased to the company were sold to an institutional investor.

In a press release, Stream Realty Partners announced the sale of Buildings 9 and 10 at the Empire West industrial park, which total 1,655,523 square feet. The properties are 100% leased to Tesla under a long-term agreement and were acquired by BGO on behalf of an institutional investor.

The two facilities, located at 100 Empire Boulevard in Brookshire, Texas, will serve as Tesla’s new Megafactory dedicated to manufacturing Megapack battery systems.

According to local filings previously reported, Tesla plans to invest nearly $200 million into the site. The investment includes approximately $44 million in facility upgrades such as electrical, utility, and HVAC improvements, along with roughly $150 million in manufacturing equipment.

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Building 9, spanning roughly 1 million square feet, will function as the primary manufacturing floor where Megapacks are assembled. Building 10, covering approximately 600,000 square feet, will be dedicated to warehousing and logistics operations, supporting storage and distribution of completed battery systems.

Waller County Commissioners have approved a 10-year tax abatement agreement with Tesla, offering up to a 60% property-tax reduction if the company meets hiring and investment targets. Tesla has committed to employing at least 375 people by the end of 2026, increasing to 1,500 by the end of 2028, as noted in an Austin County News Online report.

The Brookshire Megafactory will complement Tesla’s Lathrop Megafactory in California and expand U.S. production capacity for the utility-scale energy storage unit. Megapacks are designed to support grid stabilization and renewable-energy integration, a segment that has become one of Tesla’s fastest-growing businesses.

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Tesla meets Giga New York’s Buffalo job target amid political pressures

Giga New York reported more than 3,460 statewide jobs at the end of 2025, meeting the benchmark tied to its dollar-a-year lease.

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Credit: Tesla

Tesla has surpassed its job commitments at Giga New York in Buffalo, easing pressure from lawmakers who threatened the company with fines, subsidy clawbacks, and dealership license revocations last year. 

The company reported more than 3,460 statewide jobs at the end of 2025, meeting the benchmark tied to its dollar-a-year lease at the state-built facility.

As per an employment report reviewed by local media, Tesla employed 2,399 full-time workers at Gigafactory New York and 1,060 additional employees across the state at the end of 2025. Part-time roles pushed the total headcount of Tesla’s New York staff above the 3,460-job target.

The gains stemmed in part from a new Long Island service center, a Buffalo warehouse, and additional showrooms in White Plains and Staten Island. Tesla also said it has invested $350 million in supercomputing infrastructure at the site and has begun manufacturing solar panels.

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Empire State Development CEO Hope Knight said the agency was “very happy” with Giga New York’s progress, as noted in a WXXI report. The current lease runs through 2029, and negotiations over updated terms have included potential adjustments to job requirements and future rent payments.

Some lawmakers remain skeptical, however. Assemblymember Pat Burke questioned whether the reported job figures have been fully verified. State Sen. Patricia Fahy has also continued to sponsor legislation that would revoke Tesla’s company-owned dealership licenses in New York. John Kaehny of Reinvent Albany has argued that the project has not delivered the manufacturing impact originally promised as well.

Knight, for her part, maintained that Empire State Development has been making the best of a difficult situation. 

“(Empire State Development) has tried to make the best of a very difficult situation. There hasn’t been another use that has come forward that would replace this one, and so to the extent that we’re in this place, the fact that 2,000 families at (Giga New York) are being supported through the activity of this employer. It’s the best that we can have happen,” the CEO noted. 

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