Skip to main content

Tesla Chooses Nevada For Its First Gigafactory

Elon Musk, Chairman and CEO of California-based Tesla Motors, announced on Thursday that the company's Gigafactory will be constructed in Nevada. Governor Brian Sandoval said that this agreement will bring nearly 100 billion dollars to the state over the next 20 years. This will also be the world's largest, most advanced battery factory, he said.

The plant is expected to provide 6,500 jobs.

"I am grateful that Elon Musk and Tesla saw the promise in Nevada," Governor Sandoval said. "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."

Although Tesla has reached a deal with Nevada, this won't be the only Gigafactory location. A Tesla representative said that discussions with other states are ongoing. "We've always said we anticipated breaking ground at more than one site for the Gigafactory," the rep told Tom's Hardware.

Tesla made the announcement that it was looking for places to build its Gigafactories back in February. That prompted Arizona, Nevada, New Mexico, Texas and Tesla's home state of California to compete for Tesla's business. All five have tax benefits and "other incentives," according to USA Today.

The Dallas Morning News, reporting that Tesla didn't choose the 700-acre site in southern Dallas County, said that Tesla plans to mass-market its $35,000 Model 3 electric car by 2017. The company is already manufacturing the Model S Sedan for a meaty $70,000. The main purpose of the Gigafactory is to create cheaper batteries so that the company can sell Tesla cars for a cheaper price.

According to the report, the Gigafactory will cost around $5 billion to build, and Tesla is expected to pay for half the cost. Panasonic will invest in equipment and build the Lithium-ion battery cells. Presumably, additional partners will cover the other half of the cost.

"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," Musk said. "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."

Follow Kevin Parrish @exfileme. Follow us @tomshardware, on Facebook and on Google+.

  • Ben Van Deventer
    Can't wait. I love my WRX but I'd love a Tesla.
    Reply
  • COLGeek
    Tesla + Area 51. A coincidence? I think not...
    Reply
  • DarkSable
    This is exciting stuff; I love Tesla. I'm going to see if they have any interest in a student intern studying english and computer science; working for Tesla would be an incredible thing to have on my resume...
    Reply
  • Phillip
    Can't wait. I love my WRX but I'd love a Tesla.

    Buy a WRX with a blown motor and build an electric version. If John Wayland can make a Datsun 1200 go from 0-60 mph in 1.8 seconds, just think how quick an AWD might be off the line.

    Reply
  • ahnirv
    This is exciting stuff; I love Tesla. I'm going to see if they have any interest in a student intern studying english and computer science; working for Tesla would be an incredible thing to have on my resume...

    Working at Tesla would be the goal, not means to an end :P
    Reply
  • vern72
    If the range of the Model 3 is anywhere close to the range of the Model S (and is sold near the $35,000 price tag), I'm sold!
    Reply
  • christinebcw
    Battery technology development - short of nuclear testing and massive dairy operations - there are probably few more dangerous industries for groundwater pollution. Of course, if they can do battery-development that captures nuclear-blast energy FOR those 100-sq-mile dairies, THEN Erin Brockovich would have a whole new future.
    Reply
  • dstarr3
    Battery technology development - short of nuclear testing and massive dairy operations - there are probably few more dangerous industries for groundwater pollution. Of course, if they can do battery-development that captures nuclear-blast energy FOR those 100-sq-mile dairies, THEN Erin Brockovich would have a whole new future.

    Probably why they chose Nevada. The land's already been nuked to shit. Can't make it much worse.
    Reply
  • Unolocogringo
    I still don't get the electric car mentality.
    You are buying a car that runs on 70% COAL. The highest polluting fossil fuel available.
    Since about 70% of the electricity produced in the US made by burning Coal. Which a lot of the power plants are old enough that they do not have to meet EPA emission requirements.
    Once you figure in the power needed to produce the batteries and their pollution. Then the pollution created to charge the vehicle, they produce more pollution than efficient gas or diesel engines.
    But the power companies love them.
    And the government is giving them billions of taxpayers dollars to produce and promote them.
    Reply
  • ahnirv
    electric generation benefits from economy of scale better than just about anything, modern power generation plants have a thermal efficiency exceeding 50% (sometimes over 60%, and approaching 100% in co-generation applications), minus 5-15% of generated power in transmission losses, so say 45% efficient. Gas engines top out at 30% efficient, and just for fun, no transmission losses. Diesels top out at 40%, again under ideal circumstances. Even in favorable scenarios, EV cars beat gas engines by 50% relatively on thermal input per power to the wheels. Clearly, Unolocogringo, you know nothing about this subject. Way to go internet experts, Highfive!

    I could add a laundry list of additional benefits to EV cars, but yeah, its not needed.
    Reply