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Tesla Gigafactory to Fuel Bidding War, Says Nevada Senator Harry Reid

Ever since the Palo Alto-based manufacturer of the Model S electric sedan announced it plans to build a battery assembly plant, there have been many wild guesses about where will the Gigafactory be erected. It'll be in the United States, that's for sure, but hard proof and various voices hint at five potential states.
Tesla Model S P85 mobile connector 1 photo
Photo: original photo by autoevolution
These are California, Arizona, Nevada, Texas and New Mexico. In total, Tesla Motors will invest some $5 billion in this gargantuan project, with $1 billion chipped in by Panasonic. The Japanese company will provide battery technology, battery assembly solutions and various other technical paraphernelia, while Tesla takes care of the rest. By 2020, the Gigafactory is expected to employ 6,500 people that'll make 35 GWh of cells and 50 GWh worth of battery packs per year.

The gargantuan factory is a key element in developing the upcoming Tesla Model III, a sedan similar in size to the BMW 3 Series that'll boast a starting price around the $35,000 mark. That very low sticker price and appealing packaging for an all-electric vehicle is a bulletproof recipe for big sales volume or this is Elon Musk's biggest bet yet. It's somewhat needless to say that a lot of money is on the table with the Model III and Gigafactory project, so the previously mentioned states will do prety much everything to attract the EV carmaker, but there's a catch. Reno Gazette-Journal reports that Senate Majority Leader Harry Reid will adopt a precautionary attitude about the Gigafactory coming to Nevada.

During a news conference, Reid declared: "I would not start counting jobs on Tesla now, anyway. I will say, I'm not sure they aren't playing us... They've got pads in several states... I really don't know. I just know there is kind of a bidding war out there with the state of California and the state of Texas. I don't know what other states are involved. But there is a limit to what we can offer. And where that limit is here or not, that is up to Gov. Sandoval." Senator Reid is basically trying to say that Tesla Motors has prepared factory sites in the aforementioned states without actually making a deal with state authorities, thus forcing officials to make offers to the Palo Alto-based manufacturer. Sounds a little bit like bluffing your way out of a strip poker game, innit?

With the Gigafactory winner expected to be selected soon, Musk's ultimate goal is to shake hands with that state that'll contribute with 10 percent or more of the project's total investment, coming in the shape of an incentive package worth at least $500 million. Nevada Senator Harry Reid added: "Elon Musk, I know him. I have spoken with him many, many times and he is a brilliant man. And that is probably an understatement. But he is in it to make money. And he's going to take this Tesla project where he can make the most money."
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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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