Tesla launches a state-by-state competition for its new gigafactory in the U.S., which will produce Cybertrucks and the Model Y.

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.

With the Gigafactory 3 in China and Gigafactory 4 in Germany, Tesla is now expanding its manufacturing capabilities quicker than ever.