Elon Musk announced yesterday that Tesla is scouting locations for a "Cybertruck Gigafactory" in the central U.S., which will be utilized to produce not only the Tesla Cybertruck but also for the Tesla Model Y (for customers in the eastern part of the country).
"Scouting locations for Cybertruck Gigafactory. Will be central USA."
"Model Y production for east coast too
The Cybertruck is expected to enter production in 2021, while the Tesla Model Y is already in production in California. The Model Y will be produced also in China and Europe.
In February, Elon Musk publicly asked its Twitter followers about the Giga Texas plant:
Several states might be seriously considered as a location for the Cybertruck/Model Y Gigafactory: Tennessee, Indiana, Kentucky, Texas and Michigan, although Tennessee might be a favorite because it's already a hub for carmakers and suppliers.
"States with right-to-work laws that prohibit unions from requiring prospective hires to join their membership are likely to be contenders for Tesla’s facility, said John Boyd, principal of a manufacturing site-selection firm based in Princeton, New Jersey.
“I’d put Tennessee, Indiana, Kentucky, Texas and Michigan on the list,” Boyd said. “This will be a trophy project for the automotive sector.”"
The most important factors, according to media reports are:
- incentives for the investment
- logistics costs
- access to workforce (thousands of skilled automotive engineers and technicians)
- quality of life
- right-to-work states ("prohibit unions from requiring prospective hires to join their membership")
Time will tell which state will win the competition to attract a huge new investment in these challenging times for jobs in the automotive sector.