Published on May 1st, 2014 | by Christopher DeMorro


Tesla Gigafactory Moving Forward In Two States

May 1st, 2014 by  

Originally published on Gas2.


Tesla Motors CEO Elon Musk is reportedly ready to announce the two finalists for the location of the coveted Gigafactory, and may break ground at both sites. Why? To make sure the factory, which still faces plenty of skepticism, is up-and-running as quickly as possible.

The location of the Tesla Gigafactory had been whittled down to just four states; Arizona, New Mexico, Nevada, and Texas, though California has also made a last-minute bid to snag the massive manufacturing facility. But Musk has said California won’t work because regulatory issues would delay the factory, and time is apparently a big issue…to the point where the Tesla CEO is ready to break ground on two locations simultaneously.

That’s a bold move to be sure, and it further pits whatever two finalists Tesla has decided on against each other. Nevada arguably has the best odds, with the casino-heavy state being located closer to Tesla’s Fremont factory than any of the other contenders.

Building the factory in Texas could save Tesla millions in building and regulatory costs though. More importantly though, it could open one of America’s largest car markets to direct sales of the Model S in a market hostile to this new sales model.

The main priority here though is speed, because the sooner Tesla can bring battery production in house, the sooner it can move forward with the $35,000 Tesla Model E. With Tesla consuming most of the world’s battery production at an accelerating rate, one can understand why Musk is so hot-to-trot on the Gigafactory, wherever it ends up being.

Source: Bloomberg

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About the Author

A writer and gearhead who loves all things automotive, from hybrids to HEMIs, can be found wrenching or writing- or else, he's running, because he's one of those crazy people who gets enjoyment from running insane distances.

  • jstack6

    by the way it will be called the Tesla GEN III not model E that FORD has. 2 factories are better than one. I hope Arizona can get one of them. We have 60 computer CHIP companies and a few Solar companies and Lithium battery production is similar.

  • Gerald Katz

    Whatever the location the factory should get most of its energy from solar power.

    • Bob_Wallace

      I think that’s the plan.

      • Otis11

        And it’ll need a lot of energy – has to charge all of those batteries to 70% SoC for shipping! (Though I don’t know how high they start from manufacturing?)

        • Bob_Wallace

          I’m pretty sure by 100% renewables they mean that they’ll put as much renewable on the grid as they use. I don’t think they’re going to run offgrid.

          • Otis11

            Right, but Li-ion batteries are supposed to ship at 70% State of Charge (SoC). I don’t know what SoC Li-ion batteries are initially at when they’re fabricated, but they have to charge them up to 70% before shipping, which, given the sheer quantity of batteries being made, could equate to a lot of power simply for charging!

          • Bob_Wallace

            Ah, I didn’t understand what you were saying.

            Yep, they are going to need power. I’ll bet they’ve worked that out with SolarCity.

            Aren’t all the potential battery plant sites in pretty sunny states?

          • Otis11

            AZ, NV and NM definitely.

            TX it will depend on where they site it, but pretty much everywhere that doesn’t have good solar potential has great wind potential… except the little strip right along the LA border, but that makes little sense for placement.

            I’d guess they’d stay along the major railways in West or Central Texas – great solar, great wind, and rail access…

          • jeffhre

            And with GE. They are planning on using a combination of wind and solar.

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