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4 HZ States Compete for New Tesla Factory

hamilton-zanze March 06, 2014
Company News

Tesla Motors CEO Elon Musk recently announced plans to expand the company’s operations with a multibillion-dollar “gigafactory” in one of four finalist states: Nevada, Arizona, New Mexico, or Texas. The factory will make lithium-ion batteries for Tesla’s electric vehicles and need up to up to 1,000 acres to accommodate the wind turbines and solar panels that will power the plant. The projected investment could range from $4 billion to $5 billion and create 6,500 direct jobs in the chosen market.

Tesla’s CEO noted that the terrain and climate of the four states are well-suited for the factory’s needs. The company expects the factory to produce more batteries for its cars by 2020 than are currently produced globally. Musk is driving a hard bargain, however, and is trying to wrangle huge incentives, such as tax breaks, from the states to be the future home of the “gigafactory.”

Below are some reasons why each state could be the chosen location for the new “gigafactory”:

1. Nevada:
• Closest to Tesla’s Fremont, CA manufacturing plant
• Low operating costs

2. Arizona:
• Large areas of desert that offer ideal conditions for solar and wind farms

3. New Mexico:
• Previously a contender for Tesla’s manufacturing facility

4. Texas:
• Close to Mexico’s developed auto-making infrastructure
• Low taxes and skilled workforce

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