With the dust still settling from the recent announcement of the first Tesla Gigafactory site in Reno, Nevada, several other states are still waiting with bated breath for the automaker to announce a second – and maybe third – building site.
Other states in consideration to receive one of the Tesle Gigafactory facilities include Arizona, Nevada, New Mexico, and Texas. Each Tesla Gigafactory is anticipated to bring with it a $5 billion price tag, and 6500 jobs – enough to make any prospective state swoon.
The Gigafactories are part of a strategy to increase battery production and drive costs down. “The No. 1 thing is we want to minimize the risk timing for the gigafactory to get up and running,” said Tesla Motors CEO Elon Musk. Tesla is already ramping up production of its Model S this year – by as much as 56 percent – from the original Fremont, California plant.
The main reason for the Tesla Gigafactory plants? Tesla has already announced the Model 3, planned for 2017, as a (relatively) affordable alternative to the Model S and Model X; the car will base at around half the cost of the former. In order to produce the Model 3 at its anticipated volume and cost, each planned Tesla Gigafactory is essential to produce enough batteries to keep the 2017 due date.
With all of this simultaneous movement, Tesla Motors certainly doesn’t seem to be a floating duck. We can’t wait to see if they pull it off.