Texas

TexasTowelie

(112,313 posts) Thu Feb 27, 2014, 01:03 PM Feb 2014

Tesla's massive battery factory could trigger bidding war between Texas, other states

Tesla Motors Inc.’s plan to build what co-founder Elon Musk bills as the world’s largest battery factory could shake up the power industry and trigger a bidding contest between Texas and other states eager for the 6,500 jobs the $5 billion investment could create.

The luxury electric-car maker announced yesterday that it’s selling at least $1.6 billion of convertible notes to finance the project and exploring locations in Texas, Nevada, Arizona and New Mexico for a 10 million-square-foot facility. Tesla declined to comment on whether any negotiations had begun.

“This would rank as the most attractive industrial project out there,” said Dennis Cuneo, president of DC Strategic Advisors LLC and a former Toyota Motor Corp. executive who helped that carmaker select manufacturing sites.

Tesla has dubbed the project the “gigafactory,” and it would make Musk a force in both U.S. manufacturing and electric power. The plant he envisions would have more capacity than any other to make lithium-ion batteries.

More at http://www.dallasnews.com/business/autos-latest-news/20140227-tesla-s-massive-battery-factory-could-trigger-bidding-war-between-texas-other-states.ece .

11 replies

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Tesla's massive battery factory could trigger bidding war between Texas, other states (Original Post) TexasTowelie Feb 2014 OP

Kick. Agschmid Feb 2014 #1

How they can even consider Texas... hlthe2b Feb 2014 #2

Because there is no income tax and because they can probably receive taxpayer money TexasTowelie Feb 2014 #4

There are also signs that things are changing in Texas. TexasTowelie Feb 2014 #5

And Texas car dealers will not let Tesla be sold in the state. northoftheborder Feb 2014 #3

I'm certain that it will be a negotiation point. TexasTowelie Feb 2014 #6

Why the hell not consider Detroit? denverbill Feb 2014 #7

One possible answer is the access to raw materials. TexasTowelie Feb 2014 #9

Texas needs to allow direct sales of the Tesla cars in Texas Gothmog Feb 2014 #8

I can't find reference as to location in TX - TBF Feb 2014 #10

It's in the preliminary stages so that's why a location wasn't named. TexasTowelie Feb 2014 #11

Agschmid

(28,749 posts)

1. Kick.

Reply to TexasTowelie (Original post)

Thu Feb 27, 2014, 01:05 PM

Feb 2014

hlthe2b

(102,318 posts)

2. How they can even consider Texas...

Reply to TexasTowelie (Original post)

Thu Feb 27, 2014, 01:07 PM

Feb 2014

Sorry, Texan DUers, but really... Texas' current political climate stands in opposition to everything upon which this progressive company seemingly has based itself.

TexasTowelie

(112,313 posts)

4. Because there is no income tax and because they can probably receive taxpayer money

Reply to hlthe2b (Reply #2)

Thu Feb 27, 2014, 01:17 PM

Feb 2014

to build in Texas.

The location is also preferable for national distribution of their product compared to Arizona, New Mexico and Nevada.

Remember, it's not about politics. It's about making money.

TexasTowelie

(112,313 posts)

5. There are also signs that things are changing in Texas.

Reply to hlthe2b (Reply #2)

Thu Feb 27, 2014, 01:21 PM

Feb 2014

It isn't the Capitol building in Austin, but even in conservative Dallas things like this happen:

northoftheborder

(7,572 posts)

3. And Texas car dealers will not let Tesla be sold in the state.

Reply to TexasTowelie (Original post)

Thu Feb 27, 2014, 01:14 PM

Feb 2014

Perhaps a deal could be made.

TexasTowelie

(112,313 posts)

6. I'm certain that it will be a negotiation point.

Reply to northoftheborder (Reply #3)

Thu Feb 27, 2014, 01:25 PM

Feb 2014

There are billions of dollars and thousands of jobs on the line. That provides an attractive incentive to corrupt politicians to change the laws.

denverbill

(11,489 posts)

7. Why the hell not consider Detroit?

Reply to TexasTowelie (Original post)

Thu Feb 27, 2014, 01:39 PM

Feb 2014

God he could buy miles of space and have tons of labor. And the shipping infrastructure is already there.

TexasTowelie

(112,313 posts)

9. One possible answer is the access to raw materials.

Reply to denverbill (Reply #7)

Thu Feb 27, 2014, 01:59 PM

Feb 2014

http://online.wsj.com/news/articles/SB10001424052702304834704579404901299898392?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304834704579404901299898392.html

Recently, officials in Reno, Nev., told a local newspaper that Tesla officials had scouted the area as a possible location for a battery plant. A person familiar with the situation said Tesla officials are considering the Reno area for its plant, but didn't have other details. Reno is home to a startup lithium mining-and-production operation owned by Western Lithium USA Corp. The miner is developing a pilot plant to create lithium carbonate, a key ingredient in making lithium-ion batteries.

The labor costs in the Southwest are also less than in Michigan.

Gothmog

(145,415 posts)

8. Texas needs to allow direct sales of the Tesla cars in Texas

Reply to TexasTowelie (Original post)

Thu Feb 27, 2014, 01:51 PM

Feb 2014

The normal auto dealers are doing their best to keep Tesla from selling in Texas. Tesla may want to get these issues clarified before building a plant in Texas

TBF

(32,080 posts)

10. I can't find reference as to location in TX -

Reply to TexasTowelie (Original post)

Thu Feb 27, 2014, 04:08 PM

Feb 2014

but San Antonio has been attracting a lot of industry. Maybe they are considering that area? Of course Houston would put them close to the port for shipping.

TexasTowelie

(112,313 posts)

11. It's in the preliminary stages so that's why a location wasn't named.

Reply to TBF (Reply #10)

Thu Feb 27, 2014, 04:33 PM

Feb 2014

San Antonio is attracting a lot of industry, but that may work against them if it drives up wages.

While locating in the Rio Grande Valley might offset some of transportation benefits, the fact that labor is relatively inexpensive could be a lure for battery plant.

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