Benjamin Spillman, and Seth A. Richardson

Reno Gazette-Journal

The Tesla-Panasonic Gigafactory east of Sparks will make more than batteries.

In his State of the State address Republican Gov. Brian Sandoval said the factory will produce electric motors and gear boxes for Tesla’s Model 3 vehicles.

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Sandoval said the addition will mean another $350 million investment by Tesla and 550 new skilled jobs, in addition to the approximately 1,000 full-time workers already at the factory.

"Tonight I am pleased to announce that Tesla will expand its investment in Nevada by producing the electric motors and gearboxes for the Model 3 at the Gigafactory," Sandoval said.

Tesla made waves in 2014 when founder and CEO Elon Musk announced Nevada would be the host state for the $5 billion factory.

In exchange for choosing Nevada the Legislature approved about $1.3 billion in incentives. Sandoval Chief of Staff Mike Willden said the expanded production does not include any new rebates or incentives.

Tesla chief technology officer JB Straubel was present at Sandoval’s speech Tuesday evening.