NY talks over Tesla Buffalo plant sputter in ‘fits and starts’

Tesla's Buffalo Plant Sputters Along, State Officials Struggle with Leasing Negotiations

The Buffalo plant, which was touted as a key component of New York Governor Kathy Hochul's efforts to boost the state's economy, has been stuck in limbo for months. The $1 billion factory, built by the state and rented out to Tesla at a paltry $1 per year, is struggling to meet its job requirements, and leasing negotiations have stalled.

The latest development is the collapse of an AI supercomputing project that was set to be housed at the Buffalo site. In August, Tesla announced it would be scrapping the project, called Dojo, and instead focusing on a new supercomputer in Austin, Texas. This move has left state officials scrambling to find alternative solutions.

"We're still looking for some kind of computer to come to Buffalo," said Kevin Younis, chief operating officer of Empire State Development, which is New York's principal economic development agency. "While they weren't doing Dojo, they're doing a supercomputer. What essentially that means is they're not using their own chips for the supercomputer, they're using somebody else's chips."

Younis described Tesla as an organization that can be difficult to communicate with, adding that the state still wants the company to commit to placing some kind of computer in Buffalo.

Critics say the state should reconsider its deal with Tesla, citing concerns over job targets and penalties. The factory was intended to create 3,460 jobs across the state, including 1,460 "high tech" manufacturing jobs at the Buffalo plant. However, Tesla has consistently fallen short on these targets, leaving some to wonder if the company is a viable partner.

The latest draft of the lease agreement between Tesla and the state includes provisions for a longer lease term and increased rent, but also fails to address concerns over job creation and AI investments.

As the situation remains stagnant, Buffalo Mayor-elect Sean Ryan expressed caution about jeopardizing jobs. "Everyone still holds out hope that by having an offshoot of such a big company here that maybe something good will happen," he said. But for now, the plant remains stuck in a prolonged status quo.

The state's decision to withhold lease terms from public disclosure has also raised eyebrows, with critics arguing it is unclear what exactly Tesla is committing to and what penalties might be imposed if targets are missed again.

With the factory at a standstill, officials must navigate a complex web of job creation and leasing negotiations, all while keeping an eye on the company's track record. Will they find a way to get the plant back on track, or will it remain a cautionary tale of what happens when companies fail to meet their promises?

I feel so sorry for the people of Buffalo . I mean, $1 per year rental fee is crazy cheap, but now that Tesla's Dojo project fell through, it's like they're just using up space without making any real commitment. And yeah, the whole thing with job targets and penalties feels kinda shady . I'm not surprised some people are calling for the state to reconsider the deal...it does seem like a bad investment.

OMG its so disappointing Tesla was supposed to be such a game changer for NY state and now its just stuck in limbo . I can imagine how frustrating it must be for the officials trying to negotiate with them . The whole AI project thingy sounds super confusing . And yeah, critics are totally right to question the deal they made with Tesla . The fact that they're not even using their own chips for the new supercomputer is kinda shady . I just hope the officials can find a way to get the plant back on track and create those 3,460 jobs

I mean, have you guys seen this news about Tesla's Buffalo Plant? It's like, really frustrating for the people of NY who were expecting some major economic boost from this deal. I get that companies can be tough to work with, but $1 a year is wild! Like, what's the point of even having a factory if it's just gonna be stuck in limbo?

And honestly, I'm all for scrutinizing the lease agreement and making sure Tesla's committing to some real job creation. But at the same time, you gotta wonder if the state was naive to think that this would be a slam dunk. I mean, we've seen plenty of examples where big companies bail on their promises...

It's like, what's the alternative here? Are they gonna just give up and let the plant fall apart? Or is there some way for them to get it back on track? I'm genuinely curious to see how this all plays out.

this whole thing is a reminder that sometimes good intentions aren't enough we gotta be realistic about what we can actually deliver. the state was so hyped up about having tesla come in and bring jobs to buffalo, but now it's clear they weren't fully prepared for the reality of working with a company like tesla they wanted a partner that could just magically create 3,460 jobs overnight it's not that simple. we gotta be willing to take calculated risks and adapt when things don't go as planned

lol, like who doesn't love a good trainwreck ? So Tesla's Buffalo plant is still stuck in neutral, and our amazing state officials are having a blast trying to wrangle the company into doing its job. Meanwhile, the governor gets to enjoy the sweet, sweet feeling of $1/year rent . And don't even get me started on the AI supercomputer thing – sounds like a real winner . I mean, who needs their own chips when you can just use someone else's?

And let's talk about job targets and penalties... because what could possibly go wrong with giving a company $1/year in rent to do whatever it wants? It's not like we're setting ourselves up for failure or anything. But hey, at least the mayor-elect is keeping things optimistic – "maybe something good will happen"... yeah right .

Tesla's move is like Trump trying to build that wall without actually paying for it... I mean, $1 per year lease seems too good to be true, right? This whole thing stinks of a deal gone sour. The fact that the state can't even get Tesla to commit to placing its own supercomputer in Buffalo is like watching the GOP try to find common ground with Democrats - it's just not happening. And now the AI project is scrapped, what does that tell us about Tesla's commitment to the community? I'd say the state should take a step back and reevaluate this deal before they get stuck with another lemon...

This is crazy , I mean, what's up with Tesla not meeting its job targets ? The state is basically getting screwed over here . They're stuck with this $1 lease payment and no guarantees that the plant will actually create jobs . And now they're trying to renegotiate, but it's like trying to get blood from a stone . Can't Tesla just make up its mind? This whole situation is a total headache .

im not surprised tbh the whole thing with tesla and buffalo just feels like a mess. i mean, $1 per year rent is straight up crazy and the fact that they're using someone else's chips for their supercomputer is just shady. but at the same time, i can kinda understand why the state wanted to make the deal - 3k jobs is a big number and it was supposed to be a major economic boost . but now it seems like all those jobs are just going unfulfilled and it's all because of tesla's shenanigans . anyway, i think kevin younis has a point that they can be kinda hard to communicate with, but still, the state needs to get its act together and renegotiate that lease ASAP

Ugh man ... this whole situation with Tesla is so frustrating . I mean, the state invested like $1 billion in that factory and now it's just sitting there doing nothing . And the leasing negotiations are a joke . I don't get why they can't just renegotiate the deal or something .

And what's up with all these empty promises from Tesla? "We're going to create 3,460 jobs"... yeah right . They've been missing those targets left and right. It's like they're not even trying anymore .

I feel bad for the people of Buffalo who were hoping this factory would bring some economic growth to the area . But it's hard to blame them for being skeptical now . Maybe the state should just cut their losses and move on from Tesla . This whole thing is just a mess .

this whole thing is like a classic case of "you can't just promise everyone the world and then not deliver". I mean, $1 per year for a billion-dollar factory is basically free money for Tesla. They're taking advantage of New York's desperation to boost its economy. It's like they're playing a game of corporate chess, moving pieces around without actually contributing anything meaningful.

And let's be real, the fact that they're backing out on an AI supercomputing project in Buffalo just shows how unreliable they are when it comes to following through on their commitments. The state is left with egg on its face, trying to salvage what's left of this deal. It's a classic case of "you can't trust a snake oil salesman" – Tesla's track record speaks for itself.

The fact that the lease agreement isn't being made public is just another layer of secrecy and corruption. What are they hiding? Are there any strings attached to this deal that we don't know about? The state needs to get some transparency in this whole thing, or it's just going to look like they're making deals with corporate wolves in sheep's clothing

Tesla's Buffalo Plant is like that one friend who always borrows money from you but never pays it back . The state invested $1 billion and now they're stuck with nothing but empty promises. 3,460 jobs were promised but Tesla has consistently failed to deliver . And let's not forget about the AI supercomputing project that was scrapped because Tesla didn't even want it in Buffalo . It's like they're using our resources for their own gain and then just abandon ship when things get tough.

I'm getting so frustrated with the leasing negotiations too... $1 per year is literally nothing . Who do you think is really benefiting from this deal? The state or Tesla? I think it's time to reevaluate the contract and make some changes that actually benefit New York, not just Tesla .