California In The Running For Tesla Gigafactory After All?

California was thought to be out of contention Elon Musk’s proposed battery Gigafactory, but a new report suggests the Golden State is still in the running. What could California offer Tesla that would shift him away from the surely-lucrative offers from other states?

Reports suggested that Tesla had narrowed down the Gigafactory location to one of four states; Nevada, Arizona, Texas, and New Mexico. California was snubbed because of a lack of subsidies, though proximity to local natural resources is also said to play a role in placing the Gigafactory. With the right location, the Tesla Model S could have more American content than the Ford F-150.

Let it not be said that Tesla is immune to politics, however, as Senator Diane Feinstein allready spoke with Musk back in March. What she offered isn’t specified, though with at least four other states courting the electric automaker, I’m sure it’s a generous package. Tesla’s VP of communication and marketing said that California “could be a viable option” under the right conditions. Meanwhile, Tesla has also leased another California facility measuring 430,000 square-feet for an as-yet-undisclosed purpose. The former parts distribution center in the San Joaquin Valley is a leftover from the days of DaimlerChrysler, and is less than one-tenth the size of the proposed Gigafactory.

Could this all have been a ploy to get California to pony up? After all, the closer the Gigafactory is to actual car production, the better, assuming it actually gets built. With Golden State now also in the running, will the rest of the southwest up the ante? More importantly, should they?

Source: The Sacramento Bee