TLDR
- Tesla drops 1.45% as NY reopens $1B subsidy debate
- Buffalo jobs rise, but NY lawmakers push penalties
- Tesla tops job target as subsidy fight heats up
- NY targets Tesla licenses despite workforce gains
- Lease talks continue as political pressure builds
Tesla (TSLA) stock declined in late trading as New York lawmakers renewed pressure over a $1 billion subsidy tied to its Buffalo factory. TSLA traded at $411.37, down $6.07, or 1.45%, at 3:42 p.m. EST. However, TSLA reported new hiring gains in Buffalo while officials debated penalties and lease changes.
TSLA Expands Buffalo Workforce as Job Targets Are Met
TSLA increased staffing at its South Buffalo facility and statewide operations during 2025. The company reported 2,399 full-time employees at the factory by year-end. It also listed 1,060 additional workers at dealerships and other New York sites.
A small number of part-time roles pushed TSLA above its required 3,460 statewide jobs threshold. The gains followed the opening of a Long Island service center. The company also launched a Buffalo warehouse and new showrooms in White Plains and Staten Island.
TSLA stated it invested $350 million in supercomputers at the Buffalo site. It also began manufacturing solar panels, which formed the project’s original goal in 2014. State development officials acknowledged the updated jobs report, although they had not completed verification.
Lawmakers Seek Penalties and License Changes
Democratic legislators introduced bills targeting TSLA’s state support and dealership structure. Some proposals would reclaim portions of the $1 billion public subsidy. Others would revoke five company-owned dealership licenses permitted under state exemptions.
Lawmakers argued TSLA failed to meet earlier job commitments at the factory. They also cited broader political concerns linked to Elon Musk’s federal government role. Musk previously led the Department of Government Efficiency under President Donald Trump before leaving last summer.
In addition, one proposal would authorize $41.2 million in penalties for missed benchmarks. Another measure would open dealership licenses to competing bidders. TSLA warned that such legislation could hinder its continued expansion in New York.
Lease Negotiations and Long-Term Uncertainty
Empire State Development negotiated lease terms with TSLA throughout 2025. The current dollar-a-year agreement runs through 2029. Officials had discussed lowering the statewide job requirement to 2,900 in exchange for up to $5 million annual rent.
Shifting computing strategies complicated talks over a planned supercomputer location. State officials said they would evaluate possible fines in light of updated employment data. They also noted the facility supports thousands of families in the region.
Critics continued to question the project’s long-term value to taxpayers. Federal prosecutors previously charged former aides of Governor Andrew Cuomo with bid-rigging tied to construction contracts. Nonetheless, state officials maintained that the plant remains a major employer, and TSLA continues operations while negotiations proceed.
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