Boston, MA 09/05/2014 (wallstreetpr) – Tesla Motors Inc (NASDAQ:TSLA) can now put to rest rumors about the location of its $5 billion battery manufacturing facility. Nevada wrestled the project away from competing states New Mexico, Arizona and Texas. The state offered $1.25 billion in tax breaks to Tesla, which is one of the reasons that analysts said sealed the case of Gigafactory’s location.
Tesla confirmed that their massive lithium-ion cell manufacturing plant will be located in Nevada. The so-called Gigafactory will produce batteries used in future electric cars manufactured by Tesla. Commenting on the latest development relating to the battery manufacturing project, Tesla’s CEO, Elon Musk, said the project advances the course of sustainable transportation. He went further to state that the Gigafactory will support mass production of electric vehicles for the several decades to come.
Panasonic in the deal
Tesla Motors Inc (NASDAQ:TSLA) recently announced its partnership with Panasonic for the battery manufacturing project. Panasonic will be in charge of the manufacturing segment of the project. The cells produced from the Gigafactory are expected to be enough to enable Tesla to produce up to 500,000 electric vehicles per year.
Tesla Motors Inc (NASDAQ:TSLA)’s Gigafactory is expected to provide employment to more than 6,500 people, working for an average wage of $25 per hour. Tesla also entered into an agreement with Nevada in which it will receive tax incentives to the tune of $1.25 billion. The company also committed to $7.5 million per year support to the states education system over a period of five years.
Products line up
Tesla Motors Inc (NASDAQ:TSLA) manufactures all-electric cars and the company reported that while demand for its cars is high, its production capacity is constrained by battery short. The company currently has Model S as its all-electric sedan on the market, but it expects to bring a number of products to the market including what it calls Model X and Model 3 that is expected in 2017. Model 3 is expected to appeal to the mass market.
