Tesla’s Mega-Factory Location May Be Decided
Tesla is about to decide where it will build its Mega-factory. We already knew that they were looking at many different locations, like California, Texas, Arizona, Nevada and New Mexico, among others.
Nothing has been confirmed yet, but it seems that Nevada has been chosen. The government has reportedly offered Tesla an incentive package, which includes tax exemptions and funding for the construction.
This state is a very good choice: not only will the factory be able to harness various sources for its energy needs (like windmills, solar panels and geothermal sources) but Nevada is also close to the Freemont assembly plant, where Teslas are assembled.
It is quite an ambitious project: when completed, the factory will span over 10,000 square-feet, becoming the largest in the United States. It will also cost $5 billion to build, and will employ 6500 workers.
Panasonic is an important partner of the project, since they currently manufacture the batteries for the Model S and Model X. Once the factory is built, they will also work on research and development in-house.
This assembly plant is crucial to Tesla’s growth, since the batteries will then cost 30% less to manufacture, which will in turn allow them to build cheaper cars, like the $35,000 Model III.