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Published on May 1st, 2014 | by Christopher DeMorro

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Tesla Gigafactory Moving Forward In Two States

May 1st, 2014 by  


Originally published on Gas2.

elon-musk-obama

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.



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