Tesla To Build Gigafactory in Nevada

After a bidding war between 5 states, Tesla Motors has chosen Nevada to be the location for its first Gigafactory. Arizona, Texas, New Mexico and California were also lobbying for the chance to host the facility. From an economic perspective, Nevada seems to need this factory more than the other states. The latest unemployment numbers indicate that Nevada has a 7.7% unemployment rate, ranking them 47^th worst out of 50 states. The decision to build in Nevada shouldn’t come as a large surprise, given the events of the past few months.

In late July, media outlets in Nevada discovered a secret construction site near Reno. Many believed it to be an operation directed by Tesla. The site was heavily guarded and those who worked there were reportedly asked to sign non-disclosure agreements during the hiring process. They weren’t allowed to confirm whether or not Tesla ran the operation. The site operated 24 hours per day and 7 days per week.  The crews moved three and a half million cubic yards of earth. One report called the ability for the crew to move as much dirt as they did, “biblical.”

The silver state will be hosting the Gigafactory, and according to Forbes, there are at least two great reasons why. First, Nevada is a “Right-to-work” state. This means that workers do not have to join or not join a union or pay union dues as a condition of employment. Also, Nevada is home to the only active lithium mine in the United States. Lithium is a critical element in the Lithium-ion batteries that Tesla uses to create the batteries for its electric vehicles.

If this Gigafactory is successful, it will make a large impact on the world automotive market. Tesla is building the factory to increase production volume of and lower cost on lithium-ion batteries. The goal is to make a new Tesla, the model III, which is expected to cost around $35,000 and have a range of 200 miles. If the Model S, is any indication, a Tesla sedan with those specs could prove to be strong competition for other automakers.