Tesla’s $5 billion Gigafactory will be built in Nevada, the company announced, after fierce competition from Arizona, California, Texas and New Mexico. The factory, which will produce lithium-ion batteries in a joint operation with Panasonic, is critical if Tesla is to produce the mass-market electric cars it believes will dominate 21st century roads. Nevada was attractive for many reasons, though Musk especially cited its ability to get up to speed swiftly. The Nevada incentive package was rich. According to the New York Times Tesla will pay no property or payroll taxes for ten years, and no sales taxes for 20 years. Nevada is also a “right to work” state, which means Tesla can avoid the unions.
Even with all these advantages, tech legend and Tesla founder Elon Musk is bearish on Tesla stock in the short term. “I think our stock price is kind of high right now, to be totally honest,” Musk said.