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Nevada lawmakers debating Tesla gigafactory tax breaks today

When it comes to Nevada's financial incentives that lured Tesla Motors to build its Gigafactory in the Silver State, some lawmakers have said Gov. Brian Sandoval has some 'splain' to do. And such explanations are slated to start today, reports Reuters. When there are $1.3 billion or so worth of incentives, the conversation's likely to be a lengthy one. Nevada Assembly Speaker Marilyn Kirkpatrick is expected to oversee the talks about the incentives, which have been criticized in some circles as being overly generous (even the idea of massive incentives was criticized). Tesla's tax exemptions alone would amount to about $725 million, and there would be about $300 million in payroll savings. Other goodies include business-tax abatements and discounted electricity rates. Sandoval has argued that the Gigafactory, which could open by late 2016, could create $100 billion worth of economic activity during the next two decades, making it a pretty good deal for the state. The factory, to be built near Reno, will be about 5 million square feet and includes battery-maker Panasonic as an investor. It's considered vital to Tesla's goal of making a $35,000 electric car with a 200-mile range. Nevada beat out Arizona, New Mexico, Texas and Tesla's home state of California for Gigafactory bragging rights, but the fight might be just beginning.

Weekly Recap: The cost of Tesla's ambitious plans for growth

Tesla has ambitious plans for growth, and they won't come cheap. The electric-car maker said this week it plans to spend $1.5 billion in 2015 to expand production capacity, launch the Model X crossover and continue work on its Gigafactory, which is being built outside of Reno, NV. The company is also investing in its stores, service centers and charging network, which is expected to grow by more than 50 percent this year. Plus, it's still working on the Model 3, which is scheduled to arrive in 2017. "We're going to spend staggering amounts of money on [capital expenditures]," Tesla chairman and CEO Elon Musk said on an investor call. He then added: "For a good reason. And with a great ROI [return on investment]." They're bold plans, and Musk is clearly willing to put Tesla's money where his mouth is. That's why the company is projecting a whopping 70-percent increase in deliveries this year, for a total of 55,000 cars. A large chunk of that growth will come from the addition of the Model X crossover to Tesla's portfolio, and the company already has nearly 20,000 reservations for it. More than 30 Model X prototypes have been built, and it is expected to begin shipping to customers this summer. Musk said he's "highly confident" the vehicle, which has experienced delays, will arrive on time. The company also had more than 10,000 orders for the Model S at the start of the year. The big spending plans caused a stir, even though Tesla spent $369 million on capital expenditures in the fourth quarter alone. In a note to investors, Morgan Stanley analysts called the costs required to keep pace with Tesla's demand "eye-wateringly high," and said the $1.5-billion figure was nearly double their expectations. Still, Musk is not thinking small and suggested that his company could be as big in 10 years as Apple is now if Tesla's growth continues. His optimism comes as the company actually reported a $294-million net loss in 2014, more than its $74-million loss in 2013. The money, however, continues to roll in, and total revenues increased to $3.2 billion in 2014, up from $2 billion in 2013 and a dramatic surge from $413 million in 2012. More of the same is expected this year, and the company could reach $6 billion in revenue. As Morgan Stanley noted, it "seems Tesla is preparing to be a much larger company than we have forecasted." It's certainly spending that way.

Elon Musk to get spot on The Simpsons

It's hard to believe that The Simpsons is moving into its 26th season, but there's good news for auto enthusiasts, especially of the EV variety. The show's executive producer, Al Jean, confirmed on Twitter that Tesla Motors CEO Elon Musk would have a guest spot on the show in the upcoming season. Even better, it sounds like a pretty significant role.
Elon Musk in ep 1/11 and not a "kiss ass" celebrity guest star turn: Burns tries to kill him, and we reveal Musk's master password.

- Al Jean (@AlJean) July 29, 2014