Nevada Chosen for Tesla Gigafactory

September 8, 2014 By Linda Hardesty

gigafactory_aerialNevada was selected as the official site for the Tesla gigafactory.

Tesla Motors’ electric car battery plant will be worth $100 billion to the state of Nevada, according to executives at Tesla and leaders of the state’s government.

The $5-billion gigafactory where Tesla will produce batteries in partnership with Japanese electronics maker Panasonic, will be constructed on property known as the Tahoe Reno Industrial Center near Sparks, in northern Nevada, reports the Los Angeles Times.

The preliminary deal Tesla struck with Nevada lawmakers will give the company up to a 100 percent tax abatement for the next 20 years for all sales tax, and up to a 100 percent tax abatement for the next 10 years for all real property tax, personal property tax and modified business tax. The deal is subject to legislative approval.

A report issued by Lux Research predicts that Tesla’s gigafactory will bring about only a modest reduction in battery costs and create significant overcapacity.

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