Tesla Gigafactory to Be Built in California?

Tesla Model S Assembly Line 1 photo
Photo: Tesla
Although the upcoming Gigafactory has been rumored to be built in either Nevada, Arizona, Texas or New Mexico, a recently published report hints that California might win Tesla Motors over with an offer the Palo Alto-based company cannot refuse.
Senator Ted Gaines told the LA Times that the Governor's office is currently cooking up an incentive package that would facilitate Tesla's gargantuan battery plant by waiving restricting parts of the California Environmental Quality Act. According to CEQA, the government and state agencies need to conduct reviews of large-scale development project to find out if these are environmentally friendly, but the proposed incentive shortens the process.

Aside from regulatory shortcuts, Elon Musk and his company will surely be drawn in by this offer with a tax break estimated at $500 million. Furthermore, Governor Jerry Brown's office also considers to let the manufacturer begin construction of the plant, with damage mitigation to be performed later. Last but not least, state officials would limit potential lawsuits that might slow down the project's completion.

Panasonic already joined the Gigafactory bandwagon, chipping in $1 billion, battery technology and assembly solutions. Expected to come online sometime in 2017, Tesla's new plant is expected to make 35GWh of battery cells and 50GWh of battery packs per year by the year 2020 and employ 6,500 people. Last but not least, the Gigafactory is a key element in the development of the upcoming Model III electric sedan, expected to cost $35,000 and "steal" buyers of sedans such as the BMW 3 Series.
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About the author: Mircea Panait
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After a 1:43 scale model of a Ferrari 250 GTO sparked Mircea's interest for cars when he was a kid, an early internship at Top Gear sealed his career path. He's most interested in muscle cars and American trucks, but he takes a passing interest in quirky kei cars as well.
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