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Where should Elon build the Tesla Gigafactory?

  • North Dakota

    Votes: 0 0.0%
  • South Dakota

    Votes: 0 0.0%
  • Nebraska

    Votes: 0 0.0%
  • Minnesota

    Votes: 0 0.0%
  • Iowa

    Votes: 0 0.0%
  • Missouri

    Votes: 1 10.0%
  • Wisconsin

    Votes: 0 0.0%
  • Kansas

    Votes: 1 10.0%
  • Illinois

    Votes: 0 0.0%
  • Michigan

    Votes: 0 0.0%
  • Indiana

    Votes: 0 0.0%
  • Ohio

    Votes: 1 10.0%
  • Texas

    Votes: 7 70.0%
  • Louisiana

    Votes: 0 0.0%
  • Arkansas

    Votes: 0 0.0%

  • Total voters
    10
1 - 17 of 17 Posts

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Wherever the Cybertruck is built, the location in that state will help build loyalty among potential pickup buyers in that state. This is so important today when so many "American" cars are built elsewhere.

Texas is the largest of those states, and I believe the largest market for pickup trucks in the world. I imagine many Texans would be proud to support a full Texan made-in-the-USA pickup. Could help Tesla tremendously if truck buyers in Texas support the truck.

I imagine some in the midwest are not particularly fond of Tesla's Silicon Valley image, and a factory in their backyard, supporting jobs and their economy, would go a long way to changing attitudes.
 

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Wherever the Cybertruck is built, the location in that state will help build loyalty among potential pickup buyers in that state. This is so important today when so many "American" cars are built elsewhere.

Texas is the largest of those states, and I believe the largest market for pickup trucks in the world. I imagine many Texans would be proud to support a full Texan made-in-the-USA pickup. Could help Tesla tremendously if truck buyers in Texas support the truck.

I imagine some in the midwest are not particularly fond of Tesla's Silicon Valley image, and a factory in their backyard, supporting jobs and their economy, would go a long way to changing attitudes.
I agree.

Texas is solid ground for this.

Not only that but Tesla should easily gain the support of Texan's, even if its just for the jobs. The effect it will have on the Cybertrucks image means the world to launching an all-new pickup.
 

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I'd be surprised if they didn't choose Texas. It would be the biggest PR boost if they built the Cybertruck in Texas.
 

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Discussion Starter #5
So far we have 6 votes and 100% of them are in favour of Texas.

What would be your secondary choice? I'd say Michigan or Louisiana.
 

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So far we have 6 votes and 100% of them are in favour of Texas.

What would be your secondary choice? I'd say Michigan or Louisiana.
Definitely Michigan because of the proximity to so many people and businesses who are knowledgeable about production and supply chains. Ohio would follow.
 

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Discussion Starter #7
It looks like Missouri is putting together a large offer to Tesla to build the Gigafactory there.

According to Electrek, the city of Joplin, Missouri, has offered land and an incentive package to Tesla in the race to secure the new factory.

Toby Teeter, president of the Joplin Chamber of Commerce, has contacted Tesla with an offer already, and he told Musk on Twitter:

Joplin Chamber President here. I’m authorized to give you 100 acres in biz park at crossroads of I-44 and I-49 at the center of the USA, the historic home of battery tech, with four of the largest trucking companies in the world near here. Plus $50+ million in incentives.

 

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According to Tech Crunch, Nashville is making a strong push to get the Gigafactory. It makes sense since Tennessee is already home to the VW plant that's going to make their EVs.

Musk didn’t provide further information in the tweets. However, a source with knowledge of the talks said Nashville is on a short list of contenders.

Tennessee is already shaping up to be a hub of electric vehicle production. Volkswagen is spending $800 million to expand its U.S. factory in Chattanooga, Tenn. and turn it into the company’s North American base for manufacturing electric vehicles. Electric vehicle production at the Tennessee site will begin in 2022, VW said at the time. Meanwhile, Nissan has been producing the Nissan Leaf in Smyrna since 2013.
 

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Turning down $1 Billion from Missouri won't be easy

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Tesla Cybertruck Gigafactory: Missouri dangles $1 billion in incentives in formal bid for the plant
Missouri has submitted an official bid to Tesla for the Cybertruck Gigafactory and they claim that it’s worth about $1 billion in incentives.
Ever since CEO Elon Musk announced that Tesla was scouting locations in the central US for a new gigafactory to build its electric pickup truck dubbed “Cybertruck Gigfactory”, several states and regions have submitted bids to try to attract the plant.
Musk didn’t elaborate on where specifically in the central US Tesla is currently scouting, but the CEO previously mentioned a tri-state area and Texas as possible locations for a second vehicle manufacturing facility in the US.
Several reports also stated that the Nashville area is in talks with Tesla.
Missouri, Colorado, and Arkansas also added themselves to the competition with claims to have reached out to Tesla with preliminary discussions.
Now we’ve learned that Joplin, Missouri has formally submitted a bid, according to Toby Teeter, president of the area’s chamber of commerce.
He told reporters during a briefing Monday (via the Joplin Globe):

“Tesla is looking for a new location somewhere in the Midwest for a gigafactory. Approximately a week ago the city of Joplin and the Chamber of Commerce put a formal bid together and submitted it to Tesla corporate.”
It comes a few weeks after Teeter informally offered some land to Tesla for Cybertruck Gigafactory.
Now the bid is apparently formal and has been submitted to Tesla.
According to the chamber of commerce, it would be worth $1 billion in incentives over 12 years.
Here are the main points of the incentive package:

  • A 1,042-acre site that would be sold at a 50% discount to Tesla.
  • A 100% tax break for 12 years.
  • State incentives that would include Missouri Works tax credits to provide capital as well as funding to buy equipment and assistance with workforce training. Missouri automotive manufacturing incentives, Missouri Builds, and state and local sales tax breaks are part of the package.
On top of the incentives, Joplin also estimates that Tesla would save about $75 million a year in payroll compared to Nashville and Austin, which are apparently the frontrunners, due to the lower cost of living.
But the financial incentives are not the only factor at play for Tesla.
Musk mentioned several other factors when it comes to choosing a location for the Tesla Cybertruck Gigafactory:

“Incentives play a role, but so do logistics costs, access to a large workforce with a wide range of talents, and quality of life.”
When it comes to logistics, Joplin claims that the location in the bid is going to have rail access and it is located near interstates 44 and 49 and within minutes of the Joplin Regional Airport.
Teeter added:

“We’re also the trucking capital of America. That gives Tesla front-row access to its next market with four of the largest trucking companies in the nation within a 60-mile radius,”
As for the workforce, Teeter notes that there are 193,000 people in the workforce within a 20-mile radius and 279,000 within 30 miles, including 150 battery engineers and more than 500 licensed engineers within a 60-mile radius.
The company didn’t announce a timeline to choose a location for the factory, but it is expected to be soon since Tesla plans to bring the electric pickup truck to production late next year.
 

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Turning down $1 Billion from Missouri won't be easy

__
Tesla Cybertruck Gigafactory: Missouri dangles $1 billion in incentives in formal bid for the plant
Missouri has submitted an official bid to Tesla for the Cybertruck Gigafactory and they claim that it’s worth about $1 billion in incentives.
Ever since CEO Elon Musk announced that Tesla was scouting locations in the central US for a new gigafactory to build its electric pickup truck dubbed “Cybertruck Gigfactory”, several states and regions have submitted bids to try to attract the plant.
Musk didn’t elaborate on where specifically in the central US Tesla is currently scouting, but the CEO previously mentioned a tri-state area and Texas as possible locations for a second vehicle manufacturing facility in the US.
Several reports also stated that the Nashville area is in talks with Tesla.
Missouri, Colorado, and Arkansas also added themselves to the competition with claims to have reached out to Tesla with preliminary discussions.
Now we’ve learned that Joplin, Missouri has formally submitted a bid, according to Toby Teeter, president of the area’s chamber of commerce.
He told reporters during a briefing Monday (via the Joplin Globe):

It comes a few weeks after Teeter informally offered some land to Tesla for Cybertruck Gigafactory.
Now the bid is apparently formal and has been submitted to Tesla.
According to the chamber of commerce, it would be worth $1 billion in incentives over 12 years.
Here are the main points of the incentive package:

  • A 1,042-acre site that would be sold at a 50% discount to Tesla.
  • A 100% tax break for 12 years.
  • State incentives that would include Missouri Works tax credits to provide capital as well as funding to buy equipment and assistance with workforce training. Missouri automotive manufacturing incentives, Missouri Builds, and state and local sales tax breaks are part of the package.
On top of the incentives, Joplin also estimates that Tesla would save about $75 million a year in payroll compared to Nashville and Austin, which are apparently the frontrunners, due to the lower cost of living.
But the financial incentives are not the only factor at play for Tesla.
Musk mentioned several other factors when it comes to choosing a location for the Tesla Cybertruck Gigafactory:

When it comes to logistics, Joplin claims that the location in the bid is going to have rail access and it is located near interstates 44 and 49 and within minutes of the Joplin Regional Airport.
Teeter added:

As for the workforce, Teeter notes that there are 193,000 people in the workforce within a 20-mile radius and 279,000 within 30 miles, including 150 battery engineers and more than 500 licensed engineers within a 60-mile radius.
The company didn’t announce a timeline to choose a location for the factory, but it is expected to be soon since Tesla plans to bring the electric pickup truck to production late next year.
Now that is a compelling offer.
  • A 1,042-acre site that would be sold at a 50% discount to Tesla.
  • A 100% tax break for 12 years.
  • State incentives that would include Missouri Works tax credits to provide capital as well as funding to buy equipment and assistance with workforce training. Missouri automotive manufacturing incentives, Missouri Builds, and state and local sales tax breaks are part of the package.
It's going to be hard for another state to top that kind of deal.
 

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Now that is a compelling offer.
  • A 1,042-acre site that would be sold at a 50% discount to Tesla.
  • A 100% tax break for 12 years.
  • State incentives that would include Missouri Works tax credits to provide capital as well as funding to buy equipment and assistance with workforce training. Missouri automotive manufacturing incentives, Missouri Builds, and state and local sales tax breaks are part of the package.
It's going to be hard for another state to top that kind of deal.
Add timing to that and it really puts Tesla on the spot. I expect an announcement very soon. Investors should also be very happy because when its official, so shall a solid buying opportunity. That is, if they haven't got in already as the stock clears COVID levels.
tesla-stock-covid-19.JPG
 

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Turning down $1 Billion from Missouri won't be easy

__
Tesla Cybertruck Gigafactory: Missouri dangles $1 billion in incentives in formal bid for the plant
Missouri has submitted an official bid to Tesla for the Cybertruck Gigafactory and they claim that it’s worth about $1 billion in incentives.
Ever since CEO Elon Musk announced that Tesla was scouting locations in the central US for a new gigafactory to build its electric pickup truck dubbed “Cybertruck Gigfactory”, several states and regions have submitted bids to try to attract the plant.
Musk didn’t elaborate on where specifically in the central US Tesla is currently scouting, but the CEO previously mentioned a tri-state area and Texas as possible locations for a second vehicle manufacturing facility in the US.
Several reports also stated that the Nashville area is in talks with Tesla.
Missouri, Colorado, and Arkansas also added themselves to the competition with claims to have reached out to Tesla with preliminary discussions.
Now we’ve learned that Joplin, Missouri has formally submitted a bid, according to Toby Teeter, president of the area’s chamber of commerce.
He told reporters during a briefing Monday (via the Joplin Globe):

It comes a few weeks after Teeter informally offered some land to Tesla for Cybertruck Gigafactory.
Now the bid is apparently formal and has been submitted to Tesla.
According to the chamber of commerce, it would be worth $1 billion in incentives over 12 years.
Here are the main points of the incentive package:

  • A 1,042-acre site that would be sold at a 50% discount to Tesla.
  • A 100% tax break for 12 years.
  • State incentives that would include Missouri Works tax credits to provide capital as well as funding to buy equipment and assistance with workforce training. Missouri automotive manufacturing incentives, Missouri Builds, and state and local sales tax breaks are part of the package.
On top of the incentives, Joplin also estimates that Tesla would save about $75 million a year in payroll compared to Nashville and Austin, which are apparently the frontrunners, due to the lower cost of living.
But the financial incentives are not the only factor at play for Tesla.
Musk mentioned several other factors when it comes to choosing a location for the Tesla Cybertruck Gigafactory:

When it comes to logistics, Joplin claims that the location in the bid is going to have rail access and it is located near interstates 44 and 49 and within minutes of the Joplin Regional Airport.
Teeter added:

As for the workforce, Teeter notes that there are 193,000 people in the workforce within a 20-mile radius and 279,000 within 30 miles, including 150 battery engineers and more than 500 licensed engineers within a 60-mile radius.
The company didn’t announce a timeline to choose a location for the factory, but it is expected to be soon since Tesla plans to bring the electric pickup truck to production late next year.
Kansas developers are making their case for the Gigafactory to be in Wichita. I don't know how it compares to the Missouri offer though.

The website for the Wichita area pitch — an apparent collaboration of the Greater Wichita Partnership, Develop El Dorado and Kansas Department of Commerce — markets the greater Wichita region as “a perfect place for Tesla” and “home of the Cybertruck dream site.”

“We heard on Twitter that you’re looking for a centrally located site,” the website states. “With the site of your dreams and the best manufacturing workforce in the nation, we can provide everything Tesla’s Cybertruck Gigafactory needs right here in the heartland of America.”

The location is billed as an 800-acre site with access to BNSF and Union Pacific railways, a nearby BNSF transload facility, access to I-35, an electric substation available on-site and an adjacent 8,400-acre lake offering high-capacity water with low rates. The location is not named, but a photo appears to highlight undeveloped land northeast of the El Dorado Industrial Park adjacent to the Kansas Turnpike.


 

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Discussion Starter #15
Elon Musk said that Tesla could likely announce a new Gigafactory location as soon as next month.

If not then it will be within the next three months.

He mentioned this after releasing Q1 2020 Results
On top of that Musk said that there could be more factories coming in the next 5 years.

"I think we will announce the next Giga possibly as soon as a month. We may not -- as soon as next month. This is not a prediction, just saying. That's -- that could happen. It will certainly be within three months and possibly one month. And that would be in the US. So as for how many will be in five years, I'm not -- I don't know right now what that number would be. I guess, several more than there are today. But I'm not sure, what exactly it would be in five years, but some number more than today," Musk said.

 

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Discussion Starter #16
This is an interesting article that makes the case for Texas to be the home of the Gigafactory.


If anyone has a hunch that Texas may be the state Tesla chooses for its Cybertruck factory, you’ll probably take that as just another opinion. What if a Morgan Stanley analyst says so? Adam Jonas works there, and he stated on May 4 that there are six significant reasons for Tesla to choose Texas for its new factory, probably the first one to receive the name Terafactory – instead of Giga, as Elon Musk asked in a tweet.

The first one is that having all production on California brings a logistics burden to the company. The problem is that this possibility was never even on the table. Fremont is at full capacity, and Musk already said the Cybertruck factory would have to be elsewhere.

The second reason for Texas to be the chosen one is that it has a lot of other car companies, being the 4th state with the most automotive industry jobs. That would make it easier for Tesla to hire skilled workers there.

Jonas also thinks Texas offers a less prevalent labor union representation. That would be the third good argument in favor of that state. That is definitely something the company seeks.

The fourth point in favor of Texas is that it is a leading state when it comes to renewable sources of energy. Wind generation is very strong there, as David Byrne – also a talented musician – already stated in his website Reasons To Be Cheerful.


If you are not aware of that, SpaceX has a launch facility in Brownsville and a development facility in McGregor, Texas. That makes Tesla very similar to California in the sense that it also has SpaceX around. This is the fifth reason Jonas gives. It could also be one of the reasons for Elon Musk to decide to sell his houses in California.

The last motivation for Texas to be the first choice for the Cybertruck factory is symbolic. Having electric cars produced at the heart of the oil and gas industry in the US would be a statement of things to come. We are not sure this could have any weight on the decision at all unless it were for tiebreaking.

Apart from the reasons the Morgan Stanley analyst points out, there are some he has either not considered, or the article at Benzinga did not mention them.

Texas is one of the most important pickup truck markets in the US. Having the Cybertruck produced there would make Texans willing to buy it proud of buying local – if they could.

That leads us to the next aspect Jonas may have forgotten: Tesla cannot sell its vehicles in Texas unless it sets a traditional dealership network there. Wouldn’t it be weird to have a factory that can’t sell in the state where it manufactures? Better saying, a Terafactory, which would produce terawatt-hours in batteries instead of gigawatt-hours.

A Tesla commitment to manufacturing in Texas could be a great bargaining chip to have direct sales there. More than that, to begin selling a pickup truck in the second biggest pickup truck market in the US – the first one is California. This factor alone can be crucial for the choice. Any other candidate would have to offer way more than this to win, and that is extremely unlikely.
 
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