BUFFALO, N.Y. (WKBW) — Community leaders, state lawmakers and advocacy groups are calling for a “clean break” from Tesla’s presence at the South Buffalo Gigafactory, urging New York State to scrap a proposed lease extension and instead open up the site to new bidders.
The push comes as Tesla’s lease at the taxpayer-funded Riverbend facility nears its end. The current deal, part of a billion-dollar state investment, allows Tesla to lease the Gigafactory for just $1 per year—as long as it employs at least 1,460 workers.
Now, the state is negotiating a new five-year lease. While the tentative proposal would raise Tesla’s rent, advocates say it lowers job targets, weakens penalties for noncompliance, and fails to protect workers or the environment.
WATCH: 'I'm sick of it': Advocates urge New York to rethink Tesla deal in South Buffalo
"This is a company that is sliding downhill, facing just enormous headwinds and challenges," Kevin Connor, Corporate Accountability Researcher, said.
On Monday, Partnership for the Public Good (PPG) released a 22-page policy brief outlining the company’s alleged failures and urging New York to issue a Request for Proposals (RFP) for the site. The group is calling for a competitive process to find a new tenant that can deliver stronger job creation, environmental protections, and community benefits.
From Solar Promise to Data Tagging
Tesla originally promised to manufacture solar roof modules in Buffalo. Instead, many workers now perform low-paid data analysis, tagging video and maps to train self-driving vehicles. Former employees describe conditions inside as grueling.
“You were very much a number,” one former data analyst said to PPG.
Environmental advocates also raised red flags. Tesla’s current use of the factory includes assembling a massive AI supercomputer, which they say could drain huge amounts of electricity and water, potentially driving up utility prices for residents and harming the environment.
At Monday's press conference, Assemblymember Pat Burke said the state should not double down on a deal with a company that’s faltering.
"I'm sick of it. I want New York State to do right, and I want them to open up this process for more companies so we have the best deal for our community," Burke said.
What Advocates Want
The policy brief calls for any new lease or subsidy to include:
- Higher job targets and stronger penalties for violations
- Family-sustaining wages and benefits
- Protections against union-busting and discrimination
- Community benefit agreements for local hiring and small business support
- Strict environmental requirements, including use of renewable energy
- Payments in lieu of taxes (PILOTs) to benefit local governments
Advocates are also calling on the state to audit Tesla’s performance to date and enforce any unmet obligations.
So far, Empire State Development, which oversees the lease, and Tesla have not responded to requests for comment.
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