Tesla Motors decides on Nevada for Gigafactory - Report

After months of speculation, Tesla Motors has reportedly chosen to put up its mammoth Gigafactory at a location in Nevada. The news broke earlier today, and though Tesla has yet to officially comment on the matter, the USA Today is reporting that Nevada Governor Brian Sandoval will be holding a news conference tomorrow evening at 7PM Eastern Time to announce the deal.

Tesla CEO Elon Musk has said previously that the winning state would be expected to provide a tax incentives worth about $400 million, a level that would require legislative action in Nevada. Sandoval has "conferred with legislative leaders" to call a special session early next week to consider a package for Tesla, reported the Reno Gazette-Journal, citing a source close to legislative leaders. The special session will likely last one or two days.

The Gigafactory is a huge part of Tesla's plans to become even more of a mainstream and auto manufacturer. Following the 2015 production of the Model X -- Tesla's take on the SUV -- all eyes will be on the Model 3, the first car from Tesla meant for the mass market. In order to get the Model 3 pricetag down to acceptable levels, Tesla will need to cut costs wherever possible, which is where the importance of the Gigafactory comes in to play. By manufacturing battery packs en masse -- with the help of Panasonic -- Tesla is aiming to build batteries at scale and significantly reduce the price per battery pack. Those savings will then be passed on to consumers who will be able to pick up a great electric car somewhere in the range of $30,000.

All in all, there's no denying that electric cars are becoming more popular with each passing month. And leading the charge, of course, is the Tesla Model S which has garnered universal praise from consumers and esteemed automobile magazines. That said, the high price tag of the Model S currently precludes it from becoming a mainstream car in the truest sense of the word. The Gigafactory coupled with the planned Model 3 -- which is a few years down the road -- might very well make electric cars from Tesla all the rage come 2017.

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