Tesla confirms Nevada as host for electric vehicle battery Gigafactory

Tesla confirms Nevada as host for electric vehicle battery Gigafactory

Summary: Following reports of Nevada being chosen due to generous tax breaks, the automaker has confirmed the deal, worth approximately $1.25 billion.

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The American state of Nevada has been chosen as the official site for Tesla's upcoming electric vehicle battery factory behemoth.

Originally reported earlier this week, Nevada was believed to be the top choice for Tesla's Gigafactory -- a research facility and developer of electric vehicle batteries designed to span across 10 million square feet. The site will employ approximately 6,500 people, and the investing companies -- Tesla and Panasonic -- hope the factory will be operational by 2017.

Governor Brian Sandoval and CEO of Tesla Motors Elon Musk confirmed the deal on Thursday. Sandoval commented:

"This is great news for Nevada. Tesla will build the world's largest and most advanced battery factory in Nevada which means nearly one hundred billion dollars in economic impact to the Silver State over the next twenty years. I am grateful that Elon Musk and Tesla saw the promise in Nevada. These 21st century pioneers, fueled with innovation and desire, are emboldened by the promise of Nevada to change the world. Nevada is ready to lead."

The so-called Tesla Gigafactory will produce battery cells, modules and packs for Tesla electric vehicles (EVs), and the automaker predicts the factory will be shipping out 35GWh of cells and 50GWh of packs per year by 2020, as well as producing EVs suitable for the general public at a base price of $35,000.

Tesla's Gigafactory will also be used for research purposes. Bringing down the cost of EV batteries means the savings can be passed on to consumers -- which in turn may improve adoption rates -- and it is hoped that battery performance will also climb, eventually allowing an EV to go up to 200 miles on a single charge.

Musk said:

"I would like to recognize the leadership of Governor Sandoval and the Nevada Legislature for partnering with Tesla to bring the Gigafactory to the state. The Gigafactory is an important step in advancing the cause of sustainable transportation and will enable the mass production of compelling electric vehicles for decades to come. Together with Panasonic and other partners, we look forward to realizing the full potential of this project."

According to the Reno Gazette-Journal, Nevada's financial incentives for Tesla to choose the state amount to roughly $1.25 billion spread over 20 years. The publication says the generous tax incentives include sales tax abatement, property tax abatement, transferable tax credits, job-based tax credits and discounted electricity rates. In return, Tesla must own at least $3.5 billion in "manufacturing equipment and real property" within Nevada, and must contribute $7.5 million a year to the US state's educational system.

Read on: In the world of innovation

Topics: Innovation, Emerging Tech

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  • Nevada?

    Aren't they worried the hoover dam will run dry and they will have no water?

    Last place I'd be looking to make a long term investment, requiring 6500 employees. I'd imagine water availability will be reducing and prices going up for the foreseeable future!
    • Geography lesson?

      It's near RENO - not Vegas. They're close to Lake Tahoe, about 500 miles northwest of the Hoover Dam. Reno gets it's water from the Sierra Mountains.
    • lol

      California has worse water issues than Nevada. California is also a business nightmare in terms of regulatory and tax issues. Musk is wise not to invest there. At least the business didn't go to China.
  • How long

    How long with scam company continue before it all crashes?
    Buster Friendly
    • Scam?

      Tesla's no Worldcom or Enron.... they make stuff you know... that works... and is better in many ways than what most people already have...
      • Tesla is still a company that wouldn't exist if it weren't for subsidies,

        and tax breaks, and the darling deals that come by way of carbon credits.

        That a company exists, doesn't mean that it's being profitable or even wanted.
    • Butthurt

      Please elaborate? Or just come clean if you're a butthurt oil industry exec. By very definition this is the future, whether you like it or not.
      • It's apparently a "future" that the vast majority of people are staying

        away from, and that the vast majority of people can't afford, and that is not really wanted by most people.

        It is being pushed on the people, by government and special interests, but not by the people themselves.

        So, you are quite wrong about Tesla cars and EVs in general being the future.

        Ask the people, and not those in government and not those with environmental agendas.
        • sounds like the same argument

          Against ssd's? To expensive. Not enough capacity. Only the rich will buy them.

          Same argument as the horse and buggy when the model t came out too.
    • Tesla

      Today's PT Barnum, nothing but marketing hype.

      These cars pollute more than a full size truck and cost 3x more. Coal burning cars with toxic batteries that create more pollution to mine, process and create than a forest fire lasting a year.
      Then tack on disposing of these inefficient dinosaur tech batteries.
  • Words in photo "Net Zero Energy Factory" are misleading

    What are they saying that the factory will use strictly solar power to operate? Does that mean they will be off the grid? I doubt that. But it is a noble goal. Maybe not so realistic.
  • Tesla

    Notwithstanding the significant issue of water diversion, this tesla facility and what it represents in terms of innovation alone are akin to" mana from heaven"
    • It's more like "mana from taxpayers' pockets", or

      "money from taxpayers's pockets.

      Money from government keeps duds like Tesla going, but, government doesn't really have money, so, take a guess about where that money really comes from.