Calls for transparency and a more open process in the future of Tesla’s Gigafactory at Riverbend in South Buffalo are coming from local advocates and at least one lawmaker.
When the Riverbend site was first announced, it was hailed as a major win for the Western New York economy, and a major political win for then-Governor Andrew Cuomo. But fast forward a decade and several scandals, critics continue to use the Tesla deal as a flashpoint in the state’s economic plan for the region.
As Tesla’s lease nears its end, the Partnership for the Public Good’s latest policy brief makes a case for the state to open up the future of the plant to a competitive request for proposal, or RFP. Senior policy fellow and co-author of the report, Sam Magavern, believes it will create a fresh start for the site, which has seen nearly $1 billion in state money for construction and equipment.
“Can somebody produce more jobs, more high-quality jobs, with less harm to the environment and less harm to the community? Is there a more reliable partner? So one way to think about this question is the state of New York has a choice in terms of who it's going to do business with, who it's going to partner with, and who it's going to give public money to or subsidies to," Magavern said. "Is Tesla really the best choice given where the company is at right now?”
Tesla’s staffing numbers lagged for many years; it took around three years of operation for the company to hit its 1,460 target, and it has fluctuated. Magavern said many of the “high tech manufacturing jobs” promised by Tesla and originally mandated by the state have turned into data entry roles.
“A very repetitive job that doesn't pay very well and doesn't lead to good career prospects, especially given the rise of AI," Magavern said. "So, the fact that they're building a supercomputer here is indicative of the fact that they're not going to need much data analysis in their current plan.”
State Assemblymember Pat Burke is also joining in on the calls to create an RFP that reimagines the operation and execution of the factory, which is publicly owned.
"Why the hell would New York State, when everyone else is running away from Tesla, when its investors are running away, everyone is fleeing Tesla, New York State is going to go even further in on a sweetheart deal?," questioned Burke. "It doesn't make any sense. We can't do it. We need to open up this process. We should open it up for everyone."
An audit from state Comptroller Thomas DiNapoli’s office found for every $1 of state money spent at the Tesla site, its projected economic return was just 54 cents. Far below Empire State Development’s own benchmarks for development projects.
Empire State Development and Tesla did not return BTPM NPR’s request for comment.
The Partnership for Public Good, other community groups and Burke, in addition to their calls for an RFP, are calling on state leaders to implement stronger worker protections.
Currently, Tesla and New York are working off a non-binding proposed extension which would increase Buffalo job numbers, but lower statewide job targets. It would keep Tesla as the operator of the plant until at least 2034.
