Tesla Chooses State for Gigafactory
Congratulations YEB readers- you guessed right! Back in April, I wrote about plans for the Tesla Gigafactory, and the various states campaigning to host the state-of-the-art facility. We polled all our readers, and most of you (57%) predicted Nevada would be the state of choice. Now, the Associated Press reports a source close to the company has confirmed Tesla chose Nevada!
Before I get too carried away, let me just say there hasn’t been an official announcement from Tesla, and the source in question “spoke on the condition of anonymity.” So, it’s still possible another state could be the winner. However, oftentimes when there is smoke, there’s fire, which makes it likely Nevada will host the $5 billion factory.
According to Tesla (and not a secretive source), the Gigafactory will produce batteries and cell packs for Tesla’s electric vehicles. The company’s plan is to make its own batteries in order to lower the cost of its vehicles. Tesla has said it hopes to sell its Model 3 for about $35,000 by 2017; currently its Model S starts at about $70,000.
The reason many states have been pursuing host duty to the new factory is to boost their economies. Nevada, Arizona, Texas, and New Mexico all offered various tax incentives and straight-to-consumer sales for vehicles in hopes of gaining the 6,500 new jobs the facility will require.
It’s not completely clear if Tesla has truly chosen Nevada, or if so, why. Obviously, the proximity to the company’s Fremont, California assembly plant, and the size of the factory site are key factors. I think it’s safe to say though, Tesla representatives probably looked at our poll, and were swayed by your opinions!
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