More than $ 200 million in equipment is sold as Tesla plans to ramp up and expand operations at a manufacturing facility in Buffalo.
October 19, 2021
New York state has begun selling more than $ 200 million in manufacturing equipment it has bought for proposed Tesla and Panasonic solar factories in Buffalo.
According to local press, the state is moving this equipment to make way for new equipment Tesla has already purchased for planned expansions to its operation at the RiverBend manufacturing facility. The state justifies the story by saying that the jobs and local benefits created by the plant will outweigh the losses from the sale of the equipment.
DEVELOPMENT HISTORY (thread): New York State sells and / or scraps manufacturing equipment it bought for Tesla and Panasonic, the original value of which was $ 207 million. These purchases were originally part of the Buffalo Trillion.
– Ryan Whalen (@RyanWhalenCT) October 18, 2021
The equipment is sold by NY CREATES, the state non-profit that oversees the RiverBend facility. Investments in the facility and equipment were originally made by the state under agreements that Tesla and Panasonic would both lease the facility and use the equipment.
Most of the equipment reportedly purchased in 2015 and early 2016 prior to Tesla's acquisition of SolarCity was in use by Panasonic prior to the company's departure from RiverBend in 2020.
Of the $ 207 million devices sold, approximately $ 125 million was used by Panasonic. Approximately $ 32 million of equipment will be left at the facility and used by Tesla. Additional $ 22 million worth of equipment stored in a local industrial park will be recycled.
It has reportedly cost the state more than $ 200,000 to store the equipment. The equipment is also expected to be resold at a lower price than the equipment's original valuation.
NEW: NY Creates sells tools and equipment used by Tesla and Panasonic at Riverbend. According to a spokesman, many of the tools were ordered before Tesla's acquisition of SolarCity and long before Panasonic's involvement. @WKBW pic.twitter.com/7ZlebONrx9
– Sean Mickey (@ SeanMickey7) October 18, 2021
According to reports, NY CREATES is having difficulty selling the equipment due to its specialization, and the state has hired a global financial services company to re-market it. The state has not announced its return of the devices it has sold so far in the hope that it will not negatively affect the negotiations.
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