The Gigafactory location was the topic of discussion when I went on Bloomberg in February. A few reasons I thought it is Nevada’s to lose:

  • Nevada is geographically close to Tesla’s Fremont CA plant. Northern Nevada is on a quick direct Train route.
  • Northern Nevada also is the US’s only meaningful Lithium mine. Another huge deposit is located in near by Wyoming.
  • Nevada’s energy prices are higher than New Mexico or Arizona but still relatively low. Tesla however plans to use Solar and wind power, both of which northern Nevada has in spades
  • Texas won’t let Tesla sell cars direct to customers in the state. Arizona can’t go a year without trying to pass some crazy laws against gays, immigrants or other minorities.
  • Nevada has low taxes and pro-corporate laws.
  • Elon Musk likes going to nearby Burning Man

The AP Reports today:

Tesla has chosen an industrial park outside Reno to build its battery “gigafactory,” a person familiar with Tesla’s plans said Wednesday. The person spoke on condition of anonymity because no official announcement had been made — that was scheduled for Thursday afternoon at Nevada’s Capitol.

Aside from low tax rates and business-friendly workplace laws, Nevada offers plenty of sun and wind to generate “green” power, and relative proximity to the company’s car manufacturing plant in the San Francisco Bay Area.

The industrial park 15 miles east of Reno also is near a deposit of lithium, an essential element to produce the battery cells.

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