Tesla Motors Inc (NASDAQ:TSLA) to Start Building Battery Factory in Nevada

Tesla Motors Inc (NASDAQ:TSLA) will start building its first battery factory in Nevada, according to Bloomberg based on information from people familiar with the matter.

Last month, the electric car manufacturer conducted a ground breaking on a site near Reno and confirmed that it is preparing it as one of the potential locations for its gigafactory.

Elon Musk, the chief executive officer of Tesla Motors Inc (NASDAQ:TSLA) together with Nevada Governor Brian Sandoval will attend an event in Carson City at 4:00 P.M. local time on Thursday, September 4, 2014.

In an interview with Bloomberg, Tesla spokesperson, Simon Sproule did not confirm whether Musk would be present in the event, and did not provide additional information on what will be announced.

“We continue to work with the state of Nevada, and look forward to joining the governor and the legislature tomorrow,” said Sproule.

A statement from Gov. Sandoval’s website indicated that he will discuss a “major economic development” in a press conference tomorrow at the state Capitol.

Tesla may select two other sites

Musk previously stated that he wants to select three locations as potential sites for gigafactory. “It might actually be three states that we do it in. I would expect that we do a down-select for gigafactory 1 before the end of the year,” said Musk during the annual shareholders meeting of Tesla Motors Inc (NASDAQ:TSLA) in June.

The electric car manufacturer is also considering the states of Arizona, California, New Mexico and Texas as potential locations for the project.

Karl Brauer, a senior industry analyst for Kelley Blue Book commented, “It may be that Nevada isn’t the sole winner, but is the earliest responder to Musk’s needs for this project.” He added that the company will likely go beyond supplying batteries for electric cars and power storage systems.

According to Brauer, Musk “wants to corner the battery market, or at least have a huge level of investment or influence in it, so that he can essentially set his own costs and prices.”

Tesla Gigafactory to create 6,500 jobs

Tesla Motors Inc (NASDAQ:TSLA) plans to invest as much as $5 billion for its gigafactory, which would create approximately 6,500 jobs. In July, Panasonic Corporation (ADR) (OTCMKTS:PCFRY) (TYO:6752) and the electric car manufacturer signed an investment agreement for the project. The Japanese company wants to become the sole partner of Tesla in manufacturing batteries.

In California, State Senator Ted Gaines expressed disappointment as the legislature adjourned without approving on an incentive package for Tesla Motors Inc (NASDAQ:TSLA) related to the construction of the gigafactory in the state.

“I’m devastated for the 6,500 families who won’t have the chance at these jobs unless they move to Nevada. Tesla is a California-born company that the state has invested heavily in and we want it to succeed. It makes complete sense for it to expand right here, close to its headquarters, yet they are headed out of state,” said Sen. Gaines.