Tesla Motors Inc (TSLA) rules out California for Gigafactory

Posted Mar 7, 2014

Tesla Motors Inc (NASDAQ:TSLA) has already ruled out building a $4-$5 billion battery factory that would employ around 6,500 workers in California. Tesla will build the battery factory on a site that is around 500-1,000 acres in either Texas, Nevada, Arizona, or New Mexico.

Tesla did not say why California was taken off the list even though their headquarters in based in the Golden State. California Governor Jerry Brown presented a proposal with several potential sites, but Tesla was not interested.

“The Governor’s Office of Business and Economic Development maintains a strong partnership with Tesla and continues to work with them on future opportunities in California,” said Brown’s office in a statement.

The battery factory (known as Gigafactory) will be opening in around three years. It will have the ability to manufacture more lithium-ion batteries than the entire industry produces now. The technology plant would allow Tesla to cut the cost of the battery packs used in their vehicles by almost a third. This would allow Tesla to launch a car that sells for around half of the $70,000-$100,000 Model S.

The technology development that will be utilized in the plant will most likely happen within California.

[Source: LA Times]