Boston, MA 08/20/2014 (wallstreetpr) – Tesla Motors Inc (NASDAQ:TSLA) has overcome numerous barriers in the journey to becoming the famed manufacturer of all-electric cars that are receiving widespread acceptance in the U.S., Europe and China. The company has had to fight hard against dealership interests in several states so as to be allowed to operate owned showrooms even in places where they were almost unimaginable. However, now it appears it has become the turn of states to contest for a slice of Tesla.
$5 billion battery facility up for grabs
Tesla Motors Inc (NASDAQ:TSLA) plans to build a giant battery factory worth $5 billion or even more. The factory will be dedicated to the production of the lithium-ion cells that the company uses to power its electric cars. A shortage of batteries has been one of the serious challenges that Tesla Motors Inc (NASDAQ:TSLA) faces. Furthermore, producing its own batteries is expected to help the company experience lower operating costs, which is expected to lead to competitive pricing of its cars. Currently its flagship car, Model S, starts at $70,000 in the U.S., However, its future cars, especially Model 3, which is expected to target the mass market, could be priced in the range of $30,000. The company also has plans for all-electric pickup trucks, which are also likely to be priced competitively to take on rival Ford Motor Company (NYSE:F), whose trucks are the bestsellers in the U.S.
States in the contest
Coming on to the $5 billion Gigafactory, states such as California, Nevada, Texas, Arizona and New Mexico are trying to win the hurt of Tesla Motors Inc (NASDAQ:TSLA)’s CEO, Elon Musk, to establish the project in their locations. In fact, California is not only ready to offer Tesla $500 million in tax relief, but also willing to bend environmental protection rules to entice Tesla to establish the battery factory there.
Tesla Motors Inc (NASDAQ:TSLA) has not decided where to locate the Gigafactory, but company officials said they would break ground in at least three locations before the settle for one.
