Tesla Motors has chosen Nevada as the site for a massive, $5 billion factory that will pump out car batteries for a new generation of less-expensive electric vehicles, a person familiar with the company’s plans said Wednesday.
The person, who spoke on condition of anonymity because no official announcement was made, said work soon will resume at an industrial park outside Reno. Nevada still must approve a package of incentives Tesla negotiated.
California, Texas, Arizona and New Mexico also were vying for the project and its estimated 6,500 jobs.
Tesla needs what it calls the “gigafactory” to make cheaper batteries for its Model 3, a mass-market electric car the company hopes to sell by 2017 for around $35,000. Currently, Tesla offers only the Model S sedan, which starts at $70,000.
Tesla has done site-preparation work at the Reno Tahoe Industrial Center but had not publicly committed to building in Nevada. The person familiar with Tesla’s plans said a second site will be prepared, in case Nevada is unable to deliver the incentives it has promised — or possibly to build a second factory.
