It looks like Tesla is indeed breaking ground on a Gigafactory site near Reno if this image/story from Bob Tregilus is true:
Yesterday, our unnamed source (Bob Tregilus) hiked a few high-desert ridges in Storey County, Nevada to take pictures of 50 earthmovers moving earth at a site that Tregilus estimated to be large enough to accommodate the proposed 10-million-square-foot factory. Tregilus has also heard whispers about a secret project from construction industry folks and locals.
The site is located at the Reno Tahoe Industrial Center at 2641 Portofino Drive.
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