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Tesla Motors Picks Nevada As Site For $5 Billion Electric Car Battery ‘Gigafactory’

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RENO, Nev. (CBS/AP) — Tesla Motors has selected Nevada for a massive, $5 billion factory that it will build to pump out batteries for a new generation of electric cars.

A person with familiar with Tesla’s plans said Wednesday that Nevada beat out four other states which were vying for the project.

The person, who spoke on condition of anonymity because no official announcement had been made yet, said work soon will resume on a site outside Reno.

Nevada Gov. Brian Sandoval’s office said only that the governor will make a “major economic development announcement” Thursday afternoon. A Tesla spokesman said company representatives will be at the Capitol for the announcement.

The other finalist states were California, Texas, Arizona and New Mexico.

Senator Dianne Feinstein (D-CA) learned about the news Wednesday after speaking at a Silicon Valley Leadership Group luncheon. She expressed regret.

“I’m sorry about that, but Nevada’s a good neighbor. We have a lot in common,” she said wishing them well.

Feinstein personally spoke with Tesla CEO Elon Musk earlier this year to urge him to reconsider California after reports surfaced that they were considering locating elsewhere.

In addition, Gov. Brown’s GO-Biz operation through his Office of Business and Economic Development was seeking ways to bring the battery factory to California.

Meanwhile, Silicon Valley Leadership Group CEO Carl Guardino called the decision, “a shame”.

“Tesla picking another state in a business decision that they ultimately had to make certainly is a loss because it’s 6,000 manufacturing jobs that we’re not going to have in California.”

© Copyright 2014 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.

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