Tesla’s aim to start its battery “gigafactory” in two locations – madness or genius? image

Tesla Motors, after announcing a billion dollar plan to build the world’s biggest battery factory in the US, disclosed later on that it’s thinking about breaking ground in at least two of the possible locations.

The $5 billion “gigafactory” is a highly ambitious plan for a company that has been a start-up and only has a single car in its model portfolio now. But, it actually looks like the billionaire entrepreneur, CEO and co-founder Elon Musk, thinks that without thinking “huge”, Tesla has no chance to become an electric car company that competes on a global level.

The Li-Ion battery factory project, which should be fully powered through renewable sources and create 6,500 jobs, now needs two of the “contestant” states to simultaneously start construction – with the ultimate possibility that only one gets to sign on the contract.

The four states – Arizona, Nevada, New Mexico and Texas – are the initial candidates, with California legislators also pressuring the addition of their state – initially rejected because of the extensive environmental permit necessities.

Musk’s idea of braking ground in two locations – with the first scheduled for next month and the other to follow suite very soon – is a big insurance policy for the electric car company – the steady and timely supply of Li-Ion battery packs for the future models is so important that Tesla is also risking numerous lawsuits that would follow after finally selecting a state over the other.

Via Forbes