According to two people with knowledge of the matter, Tesla Motors Inc. is to proceed with building its first battery “Gigafactory” in Nevada. One of the spokesmen of Tesla Mr. Simon Sproule said in an interview that there will be company representatives at the announcement by Nevada Governor Brian Sandoval at 4 p.m. local time today in Carson City, but did not reveal if Elon Musk would be there.
Tesla had challenged several states, among which California and Texas, to compete with each other over incentives to attract the $5 billion plant that would secure 6 500 jobs. Mr. Musk said in July that the winner would have to provide about 10% of the factorys cost, with tax incentives amounting to $500 million being the largest in Nevadas history.
State Assembly Speaker Marilyn Kirkpatrick, a North Las Vegas Democrat, said in a telephone interview for Bloomberg: “We’ve put what we think works out there. You have to be able to show a return on your investment.”
Tesla is betting on bringing electric cars to the mass market by 2017, which is why the company is to make a multi-billion-dollar investment in the giant battery factory in Nevada. The plants output was promised to beat the total world production of lithium ion batteries for 2013.
The co-founder of the company Mr. Elon Musk hopes that producing larger volumes of batteries will result in driving the divisions costs down, which in terms would make electric cars more affordable.
In addition, by choosing the state of Nevada for building the factory, Tesla would get a closer reach to its assembly plant in Fremont, California, which means the company would have better access to lithium that is a core raw material for batteries. Tesla shared that it plans to start construction as soon as possible in order to finish the plant by 2017. In 2017 the auto maker plans to release its third vehicle – its Model III electric car with a 200-mile range, whose price is expected to start at $35 000.
Tesla Motors Inc. fell by 1.03% on Wednesday to close at $281.19 per share, marking a one-year change of +66.44%. The electric car maker is valued at $35.41 billion. According to CNN Money, the 16 analysts offering 12-month price forecasts for Tesla Motors Inc. have a median target of $275.00, with a high estimate of $400.00 and a low estimate of $75.00. The median estimate represents a -2.20% decrease from the last price of $281.19.
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