State Leaders Question Tesla’s Commitment Amid Lease Renewal Talks

BUFFALO, N.Y. — State leaders are raising concerns as Tesla faces scrutiny during ongoing lease renewal discussions. This comes despite the company employing over a thousand workers in the area.

In January 2024, Governor Kathy Hochul promoted Tesla’s plans at a press conference regarding UB’s AI Center. She proudly announced, “Tesla is investing $500 million to build their next supercomputer right here in Buffalo.” However, more than a year later, the Empire State Development agency is responding to reports indicating that this supercomputer project is no longer active.

“ESD is aware of recent news reports about the discontinuation of Tesla’s Dojo project,” the agency stated. “While the state has not funded Dojo, ESD is contacting the company to understand the potential impacts to its Riverbend operations, its contractual obligations to the state, and its ongoing negotiations with ESD.”

With departures of key staff and CEO Elon Musk’s decision to outsource AI development, Tesla’s plans have come into question. Meanwhile, legal challenges surrounding their Autopilot program continue.

As negotiations continue for a new five-year lease for the South Buffalo property—originally built with over $950 million in taxpayer money—state lawmakers express heightened frustration. These frustrations mount as previous layoffs and anti-union sentiments surface in recent reports.

State Assemblymember Pat Burke voiced his concerns over the situation. “Tesla is not in a strong position right now… We need to open up this process to any other potential partners for the site,” he stated. He added, “A commitment is made and then it is pulled back. We gotta stop playing this game with them.”

State Senator Sean Ryan echoed Burke’s sentiments, declaring, “This is just the latest example of Tesla failing to deliver on its promises.” With plans for the supercomputer in doubt, he urged that these developments impact ongoing negotiations with the company.

Additionally, New York City lawmakers have proposed “DOGE bills” that enhance scrutiny of state agency involvement with companies engaged in supercomputing and advanced driver assistance initiatives. The legislature is currently assessing these proposals while lawmakers are out of session.