John Solari: Tesla’s economic multiplier looks good

John Solari 11:02 p.m. PST December 21, 2014 Reno Gazette-Journal

teslaNow that much of the dust has settled over the Tesla deal that will bring the world’s largest battery plant to Northern Nevada, one big questions remains — will the economic projections surrounding Tesla actually pan out?

The Governor’s Office of Economic Development has done a great job parsing the economic projections behind the Tesla jobs figures. But there are some interesting macroeconomic trends that are making the Tesla deal look better by the day.

Here is a brief recap of the economic multiplier that was used to project Tesla’s impact on Northern Nevada. Tesla is projected to create 6,500 direct jobs, all of them by 2018. Another 7,814 indirect jobs are projected from suppliers, distributors and other associated industries. Then, 8,402 induced jobs are estimated from the increased demand of this new workforce spending within the community. That totals 22,715 jobs.

There have been many questions about these calculations, and it should be reiterated that no projections are perfect in a fast-changing economy. But here are three reasons why Tesla’s economic multiplier projections are looking even more promising today than when the Tesla deal was approved:

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