All four states want the factory in their respective borders

Tesla Motors has stirred up some competition among four Southwestern states that want the automaker to place its new Gigafactory within their respective borders. 
According to USA Today, Nevada, Arizona, New Mexico and Texas are all crossing their fingers that Tesla will bring its Gigafactory for lithium-ion batteries to their state. Tesla recently announced the four states as finalists for the factory's location.
Tesla's Gigafactory aims to create electric vehicle batteries on a mass scale, which will bring battery costs down and help the automaker deliver an affordable EV. Right now, the company offers its high-end, all-electric Model S sedan that has a starting price of $69,900 in the U.S.
Tesla said the giant factory would create 6,500 jobs, which is an attractive offer to these states. Tesla will invest around $2 billion in the plant through 2020 while investors will pay another $2-3 billion for a total $4-5 billion investment. 
All four states are good candidates because they have the climate and terrain necessary to power the plant, which will run on solar and wind. 
Nevada would be the closest option for Tesla, since its EV manufacturing plant is in Fremont, California. New Mexico would likely be favorable to Tesla as well, since the automaker previously planned to manufacture its EVs in the state before settling on the California factory. 

"Gov. Susana Martinez, state and local leaders greatly admire Tesla. We are believers in the company's vision and philosophy," says Jon Barela, secretary of the New Mexico Economic Development Department, in a statement. "This is an incredible company that is changing the world for the better. We are ecstatic that New Mexico is a finalist for this phenomenal project."
While Arizona has the sunshine Tesla needs in abundance, the state's fiscal conservatives might not be onboard with so many incentives funded by taxpayers. 
Texas is another good choice, because it already provides space for other auto plants and is close to auto manufacturing infrastructure in Mexico. But Tesla has had issues with Texas in the past that could ruin future business together. 
Last April, Tesla CEO Elon Musk showed support for House Bill 3351, which would allow distributors and manufacturers of electric vehicles (EVs) only to sell directly to customers without the use of dealerships in Texas. The state fought Tesla in an attempt to protect the position of auto dealers, which can lobby a lot harder than Tesla
However, Tesla could strike a deal with Texas where the automaker demands the anti-dealership sales model in exchange for bringing the Gigafactory to the Lone Star state. 
The giant Gigafactory will span 500 to 1,000 acres of land and have a space requirement of 10 million square feet. It aims to produce 35 GWh of cells and 50 GWh of battery packs a year. 
Tesla added that it's getting ready to produce 500,000 EVs a year in 2020, and the Gigafactory will supply those battery packs. What's more is that Tesla expects the per-kWh cost of a Tesla battery pack to be lowered by more than 30 percent once the factory is up and running for the first year. 
Construction will continue through 2015, and in 2016, equipment installation is set to begin. The year 2017 will finally see production launch, and will gun for the half million EVs produced in 2020. 

Source: USA Today

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