Tesla’ s 5 states bid high for its new battery factory image

Tesla has been long planning the $5 billion plant to make batteries for its new generation of electric cars. The massive scale project is also set to bring about 6,500 new jobs, besides cutting-edge technology.

With the matter of where to build the plant at hand, Tesla now has five states bidding subsidy packages to land the construction of the factory. The winner is expected to give the luxury carmaker publicly financed incentives worth more than $500 million dollars.

Tesla’s CEO Elon Musk announced this spring that his company will spend millions to prepare sites in two states, or maybe even three, before the finalist is even chosen. He then added that over the summer, the winning state would pitch in about 10% of the cost, which represents a minimum bid of $500 million. While an industrial park in the desert outside Reno, Nevada is one of the known sites, the other prospective locations remain unknown.

The plan promises a deal that every state is interested in: thousands of good-paying jobs and a number of economic benefits. Until now, Nevada, California, Arizona, New Mexico and Texas are the five contenders.

Tesla needs the plant to produce cheaper batteries for its Model 3, a mass-market electric car the auto brand plans to sell by 2017 at the price of $35,000.

While Texas has done business with Musk before, New Mexico seems willing to take some extra steps to land the deal. Its governor said that, if needed, she will ask the Legislature to take into account changes in the law that would help land the plant.

By Gabriela Florea