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States Competing for Tesla Gigafactory to Build Within Their Borders

Tesla Gigafactory - A Big Deal in the Works
Tesla Gigafactory – A Big Deal in the Works

Economically speaking, the Tesla Gigafactory promises to be a boon to, not only Tesla Motors, but also to whichever state Tesla Motors ends up building the grand industrial complex.

The Tesla Gigafactory’s promised economic benefits, aside from being estimated at some $5 billion to construct and supplying lithium-ion battery packs for some 500,000 electric vehicles per year, are also good for the state. When all is said and done, the Tesla Gigafactory is expected to generate some 6,500 jobs. Any state in the running for the factory site, including Texas, New Mexico, Arizona, and Nevada, chosen for their proximity to Tesla Motors’ production facilities in California, would be happy to get that many jobs off the unemployment rolls.

California was already knocked off the list of prospective sites, due to the expense of doing business there, in spite of California’s electric-vehicle friendliness. Tesla Motors hasn’t decided yet where it will build the Tesla Gigafactory, so States are trying to sweeten the deal, at least a couple of them. New Mexico is considering a special legislative session to work out an attractive economic package for Tesla Motors, such as reduced corporate tax rates.

Arizona, on the other hand, has proposed a bill that would allow direct sales of Tesla Motors vehicles to the consumer, outside the automobile dealership association (ADA), which has been a real sticking point in other states, such as New Jersey and Texas. Arizona says adjusting the direct-sales prohibition isn’t *cough* a carrot, but whatever, we’ll not hold that against them. If that’s enough to convince Tesla Motors to build the Tesla Gigafactory there, however, is anyone’s guess.

Interestingly, Texas, who has been staunchly opposed to direct sales, thanks to ADA big money, hasn’t made any such suggestion to the contrary. Texas, just by virtue of the fact that it’s an oil state and that it’s just-shy-of openly opposed to Tesla Motors direct sales strategy, doesn’t seem to be a likely candidate for the Tesla Gigafactory. Nevada hasn’t said much, has Las Vegas I guess, but we might hear something from them, yet.

Image © Tesla Motors

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