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Tesla Motors Gigafactory Location: Nevada The Likely Winner

by Michelle Jones/ValueWalk

Tesla Motors Inc (NASDAQ:TSLA) released a lot more details about its plans for the gigafactory this week as planned, and so far, the company says it is considering four states as potential locations for the facility. Nevada, Arizona, New Mexico and Texas are the finalists so far, but some believe Nevada is the most likely candidate.
Speaking on Bloomberg, 9to5 publisher and editorial director Seth Weintraub listed a number of reasons he thinks Nevada will win. He notes that it is the closest to Tesla Motors Inc (NASDAQ:TSLA)’s car building factory in Freemont, Calif. He said there are rail lines running through there, and, as others have said, there’s a big lithium factory located in Nevada. Also he noted that there are additional lithium reserves in Wyoming.

Most expect that Tesla Motors Inc (NASDAQ:TSLA) will receive a number of tax incentives from the state it ends up choosing. Management had said they would announce the state in their most recent earnings report last week, but the fact that they still have a list of finalists suggests that they’re angling to get the best deal with the most tax incentives possible.

Tesla Motors Inc (NASDAQ:TSLA) said it will invest $2 billion in capital expenditures for the gigafactory, with the rest of the $4 billion to $5 billion coming from its partners. It also provided a timeline, which shows construction actually beginning this year.