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

[Credit: Derek Gee/The Buffalo News]

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Tesla’s Gigafactory 2 in Buffalo, NY was dubbed fully complete by state and company officials this past April, starting a countdown clock for Tesla to provide 1,460 jobs to Buffalo, NY within the next two years. Failure to do so could result in fines of up to $41.2 million for every year that it does not meet this employment goal.

When Tesla received support from the state worth $750 million to build and equip the solar factory, the company committed to providing 5,000 jobs to the state of New York within the next ten years. These job-creation targets have evolved over the years, particularly when SolarCity was acquired by Tesla. The state of New York’s original agreement with SolarCity required the company to provide 1,460 jobs at the solar factory and another 1,440 jobs at suppliers and service providers in the Buffalo region. This gave SolarCity a target of providing 2,900 jobs for local workers.

Once Tesla took over, the requirement to bring in 1,440 suppliers was waived by the state. The revised agreement with New York included requirements for Tesla to create 1,460 jobs in Buffalo within two years after the factory is complete, including 500 manufacturing jobs at Gigafactory 2. In a statement to The Buffalo News, Tesla officials stated that the company had already surpassed the first employment target — one that required Tesla to create 500 jobs by April 2019. By meeting this target, Tesla is now tasked to more than double the number of jobs it created so far, in order to meet the state’s April 2020 deadline.

Tesla’s Gigafactory 2 might seem almost dormant amidst the company’s push to ramp the production of the Model 3, but the electric car and energy company maintains that it intends to produce its solar products at a larger scale in the Buffalo facility within the coming quarters. Before its Q2 2018 earnings call, CTO JB Straubel stated that Tesla is “aggressively ramping” the production of its residential solar products, which are manufactured at the New York factory. Straubel also stated that production of the Solar Roofs are expected to accelerate in 2019, as residential installations of the shingles are rolled out to reservation holders.

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The Tesla executive reiterated this statement in the company’s second-quarter earnings call, stating that while the company’s electric car business is bigger today, the growth of Tesla Energy is faster. Elon Musk even noted that Tesla Energy would likely catch up to the electric car business’ size in the future.

“Yeah, if you extrapolate energy growth rate, well, obviously, if you extrapolate anything when that triples for a year pretty soon becomes the size of the universe, but long-term we would expect the energy business to catch up to the auto business in size,” Musk said.

Tesla’s Gigafactory 2 in Buffalo, NY is tasked with the production of the company’s Solar Roof tiles, which, together with the Powerwall 2 home battery, are part of the company’s initiative to help customers achieve “sustainable energy independence.” At full capacity, Tesla’s Gigafactory 2 is expected to manufacture 1 GW worth of solar products every year. In classic Elon Musk fashion, the CEO gave a more optimistic forecast for the facility back in 2016, stating that he estimates the factory to be capable of producing as much as 10 GW worth of solar products annually.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Energy

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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