Intense Bidding War Expected Among 4 States in Running For Tesla Giga Factory
With its recent giga factory announcement, Tesla Motors revealed that 4 states are in the running for the battery factory that will employ ~6,500 individuals.
As expected, a factory of this size will start a bidding war among the states.
Dennis Cuneo, president of DC Strategic Advisors LLC, stated:
“This would rank as the most attractive industrial project out there.”
All 4 of the states in the running are expected to present some lucrative incentives to Tesla Motors. The goal will be to bring Tesla there by one-upping the other states.
Tesla says that it has yet to begin negotiations with any of the states, but we’re certain that those 4 states are already seeing what sort of package can be put together to lure Tesla in.
Cuneo adds that the giga factory will “draw interest” from many other states beyond the 4 that Tesla listed. There will be “robust competition” and “incentives are probably going to be a big factor” says Cueno.
Harley Shaiken, a labor economist at the University of California, Berkeley, adds:
“Without question there will be a very intense bidding war—$5 billion is a breathtaking figure.”
It’s not just the jobs that will lead to the bidding war though. Shaiken says that a state will want to be able to say that they were part of the “research and development related to this” too. Like bragging rights, sort of.
Source: Automotive News