Boston, MA 09/02/2014 (wallstreetpr) – The California lawmakers went out of town without even considering or giving an eye to the much-talked about incentive bill which was directed towards attraction of Tesla Motors Inc (NASDAQ:TSLA) in Palo Alto for building Golden State based $5 billion battery factory. It is quite evident that the charm and talks of attracting an electric automobile maker in California has lost its appeal, at least at present.
The Controversial Draft Legislation
So who is to blame for this lack of reaching any accord? Governor Jerry Brown’s top aides cannot be blamed much as the Office of Business and Economic Development had been conferring for past few months with the top executives of Tesla Motors Inc (NASDAQ:TSLA) (including the CEO, Elon Musk). Both these parties even created draft legislation, but then it became controversial sooner than later.
The reason for controversy was a 35-pages long proposal which demanded waiving off large portions of the California Environmental Quality Act (CEQA) so that construction of this battery factory could be speeded up in order to meet Tesla’s scheduled factory running of “giga-battery” by 2017. In the proposed draft, Tesla Motors Inc (NASDAQ:TSLA) also indicated somewhere about the tax-breaks which could shoot up to as high as $500 million.
In response, a few lawmakers in California along with environmentalists debated that the waivers in context with CEQA were too extreme to meet.
Does Tesla Need Re-Thinking?
In an interview with the Los Angeles Times, one of the policymakers, who is not authorized to speak in public about “sensitive issue,” said, “The administration gave up about a week ago.” In the meanwhile, the LA Times also reported thatTesla Motors Inc (NASDAQ:TSLA) was not considering cutting down any terms and conditions of the deal.
The policymaker said that Tesla Motors Inc (NASDAQ:TSLA) needed to fix the pieces of puzzles regarding this project in a proper manner so that the proposal becomes easily understandable and acceptable.
In response to how Tesla will be waiting for this agreement to be finalized, the spokesman of Tesla Motors Inc (NASDAQ:TSLA), Simon Sproule said that the process was ongoing. In the meanwhile, Elon Musk, the CEO sees California as a long shot and also expressed his concerns regarding the complicated environmental regulations of the state.
