As negotiations continue on a new lease for Tesla's factory in Buffalo, New York, some local officials feel the state would be better off opening up the process to other companies and possibly bringing a new tenant to the site.
What's happening?
Tesla and New York officials have been negotiating a five-year extension on the company's current lease at Gigafactory New York, which ends in 2029.
As WKBW reported, Tesla pays just $1 in rent per year under its current terms, so long as it employs at least 1,460 workers at the location. Under the proposed extension, the rent would reportedly increase to $2 million annually through the end of 2029 and $5 million annually for the five years after, according to Spectrum News 1.
Critics and advocacy groups, however, aren't sure that's the best option for Buffalo or New York. They argue the rent hike would come with trade-offs such as lowered job targets and weaker environmental protections.
One of those groups, Partnership for the Public Good, said Tesla hasn't lived up to its end of the current deal, as the facility was originally designed to manufacture solar roof modules but has instead been used for low-paid data analysis jobs. The company is also reportedly building a large supercomputer on-site to perform artificial intelligence, which uses up huge amounts of energy and water.
PPG has teamed up with local lawmakers to ask that the state accept other bids for the site to see if it can find a better deal for Buffalo workers.
"I'm sick of it," New York Assemblymember Pat Burke said. "I want New York state to do right, and I want them to open up this process for more companies so we have the best deal for our community."
Why is this important?
Tesla has faced a number of difficulties this year.
The electric vehicle pioneer has seen its sales numbers drop and a number of top executives leave, and it has been the subject of protest and vandalism. But despite all of that, it is still the largest and most well-known all-electric automaker.
Anything that negatively impacts Tesla could potentially result in fewer EVs on the road. And given the environmental benefits of switching from a gas-powered vehicle to an EV, that could be troubling news.
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What's being done about this?
Along with opening the Gigafactory site to other bidders, PPG wants New York to audit Tesla's actions during its current lease and make sure it has lived up to the terms of that deal.
If New York does proceed with a new lease agreement with Tesla, the advocacy group suggests the state include provisions such as higher job targets, better wages and benefits, stronger environmental protections, and harsher penalties for not abiding by all terms.
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