California Not In The Running For Tesla Battery Giga Factory Despite State’s Attempt to Strike a Deal

Tesla Supercharger Station Fremont Factory

MAR 12 2014 BY ERIC LOVEDAY 25

Teslaa's Giga Factory Will Be Located in One Of These 4 States - Let The Bidding Begin!

Teslaa’s Giga Factory Will Be Located in One Of These 4 States – Let The Bidding Begin!

When Tesla Motors made its Gigafactory announcement, absent from the list of states in the running was California.

Tesla Supercharging Station Outside of Fremont Factory

Tesla Supercharging Station Outside of Fremont Factory

Tesla’s list of 4 states in the running is not necessarily all inclusive, as we’ve heard countless reports now of additional states trying to put together packages to entice Tesla to construct the Gigafactory.

But one state if a definite no.

Despite repeated efforts to sway Tesla to put the Gigafactory in California, the state is out of the running.

As the Los Angeles Times reports:

“Although the location hasn’t been determined, Tesla has crossed California off the list. The company declined to comment on the reasons.”

“State officials aren’t saying much either. A spokesman in Gov. Jerry Brown’s administration said the state presented a proposal to the automaker with several possible sites, but that the automaker didn’t bite.”

The Governor’s office provided the LA Times with this statement:

“The Governor’s Office of Business and Economic Development maintains a strong partnership with Tesla and continues to work with them on future opportunities in California.”

Why not in California?  Cost.  It’s as simple as that really.  Land prices in most areas of California are simply too high for Tesla, so the automaker will look elsewhere for a site to situate its massive battery factory on.

Key for Tesla is to secure land on the cheap and to get various incentives from the state in which it chooses to locate the Gigafactory.

California won’t be that state.

Source: LA Times

Categories: Battery Tech, Tesla

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25 Comments on "California Not In The Running For Tesla Battery Giga Factory Despite State’s Attempt to Strike a Deal"

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My suggestion is Moses Lake, WA. BMW already chose to build it’s carbon fiber manufacturing plant there because of the cheap sustainable power ( hydroelectric ) and affordable land. Eastern Washington has an educated, accessible labor force and is
not located out in the desert. There is nearby amenities in the town of Moses Lake.

Perfect!

The argument that you get clean power by having a factory in WA is BS. Hydro power is not in surplus, looking for a use.

If BMW’s or Tesla’s factory uses hydro, then other companies/houses get powered by new natural gas generation. The marginal load is almost entirely fossil fuel based.

If Tesla builds their own solar farm, and uses batteries (either rejects or QC cycles) to minimize their grid load, then they actually are powering their factory with renewables, unlike the poser move from BMW.

Good point.

The climate in Eastern Washington is sun, sun and more sun. While arid, it’s not high desert, like Nevada, Arizona, New Mexico or Utah. So again – perfect for Tesla’s solar arrays.

That may be true, but the desert southwest, being higher elevation and closer the equator, will get a more powerful effect from the Sun – direct, less atmosphere, more daylight all year long.

http://www.7-forum.com/bilder/news/2011/sgl_p90081904-b_jpg.html SGL Automotive Carbon Fiber – Moses Lake, WA

Yet – when it’s 80degrees F in Moses Lake, WA, it’s 110degrees F in the high desert Southwest. How much energy wasted in extra air conditioning/cooling, etc?

It’s also very political also. Whomever wins in the site selection for Tesla’s battery complex will certainly be the one who gives them the best incentives.

But how much extra few hours of sun will make a huge difference in solar generation.

As far as A/C goes, the plant will always need A/C regardless…

The extra solar power generated will more than compensated for it.

The winter and summmer generation between winter and summer is about 60% for me and I am only in the SF Bay area…. In AZ, it will be less than 10%. In WA, that difference would be even larger….

Thanks for the map.

But that shows an average of 50% difference between the two zone….

The Texas proposition could include a big carrot – overturning it’s anti-Tesla direct sales laws there. Remember Musk just happened to “mention” a future imaginary truck factory – which…just…could…possibly be in Texas. Very clever, this one.

Removal of a protectionist law should hardly count as a carrot. That is just removal of a stick.

My meaning was that Tesla holds out the carrot of a new Gigafactory or truck plant in order for the Texas legislature to overturn the protectionist law. The auto association lobby’s influence upon state’s politicians is obviously quite large. Certainly a large factory and thousands of jobs is a much juicier carrot for an incumbent going for re-election.

It goes way beyond land costs. I have watched tax and regulation heavy California chase companys out of the state for over 25 years. And the powers that be always seem so puzzled by this exodus of jobs to AZ. and beyond.

Salaries are probably a factor too… tied to cost of living i.e. cost of housing.

Is it really that expensive to build in Trona, CA?

Pretty sure NJ’s out, too.

Simple, land cost and salary.

In CA, you would have to pay the average worker at least $80K to $100K.

In TX, NM and NV, you can get away with only $40K salary….

Land cost is another 4x-5x in cost at least.

Land in east San Barnardino county CA. is cheap & plentiful with a large labor pool that would not cost $100k a year (!) It has great solar and very good wind conditions for alt. power. I have many clients who own their own companys or are CEOs etc. and they each will tell you its the heavy regulation and taxes that drive them out of the state. Tesla would not be building cars in the state if a suitable existing factory could have been found elsewhere.

Regulation got the ZEV requirement that benefited Tesla.

Taxes on gasoline also doing the same for Tesla.

So, Tesla is willing to bite the hand that feed it? Great logic. Or at least shows how Tesla is repaying the state of CA…

Your argument ignores that work (design, R&D, test track, etc.) continues at NUMI, including line expansion for Model X production. More people will be working there than ever before. So don’t worry, CA is doing fine with their piece of the pie.

Tesla got a killer deal on the NUMI plant. So keeping the production there is expected and with upcoming Model X and E, the plant might finally run to full capacity. With all the incentive that CA already gave Tesla for keeping the original plant, I am pretty sure Tesla is winning on that one…

@MMF

@MMF, It’s not logic, just a first hand account of facts I’m passing on.

Of course, the non-competitive ones will always whine. I am sure the so called “regulation” and “tax” didn’t stop the sillicon valley from being what it is today…

Explanation:

http://www.businessweek.com/articles/2013-07-03/why-are-californias-businesses-disappearing

This is from the blog below that article:

California’s extremely liberal state government strangles businesses with taxes and regulations up the wazoo so they can pay for all of the illegal aliens and the out of control state pensions and unions. It’s no big surprise that businesses want out. Whatever regulations are implemented ANYWHERE in the country, California looks at them and says, “We can be more restrictive than that! Watch THIS.” Economic, political, and cultural suicide.