Kyle Johnson
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Tesla CEO Musk: Two States Will Get Gigafactories

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Elon Musk says to move to build gigafactories in two states is a matter of avoiding last-minute complications.

gigafactories Elon Musk

Tesla CEO Elon Musk: “at least two” states will receive battery-producing gigafactories.

It would appear that Elon Musk is not looking to put all of his lithium-ion eggs in one basket. Bloomberg reported this morning that the Tesla Motor Company CEO is close to naming not one but two sites for battery-producing gigafactories and breaking ground in both locations shortly thereafter.

“What we’re going to do is move forward with more than one state, at least two, all the way to breaking ground, just in case there’s last-minute issues,” Musk said. “The No. 1 thing is we want to minimize the risk timing for the gigafactory to get up and running.”

Earlier this year, Musk announced that four states—Arizona, Nevada, New Mexico, and Texas—were in the running to receive a plant that will cost up to $5 billion to build and could bring in 6,500 new jobs as well as untold revenue. Tesla raised $2.3 billion in March to help fund the construction of the plant.

Musk did not specify which states were at the forefront of discussion, nor would he disclose a timeframe for the announcement. He stated that the need for two gigafactories would be necessary in order to minimize timing risks and ensure that all revenue put into building the plants is recouped after production gets underway.

Tentative plans have the next generation Tesla model, which is estimated to carry a price tag in the mid-$30,000 range, coming to market some time in 2015. Musk’s comments were issued last week in a visit to China, wherein he also announced that Tesla would not only begin delivering product to the world’s largest car-buying market, but that the company would also being manufacturing vehicles there “in the next three to four years.”

Texas governor Rick Perry, who was vital in helping sway Toyota’s decision to move the bulk of its U.S. operations into Texas, is no doubt licking his insane chops at the news that the chances of getting a gigafactory in Texas has now doubled. One can only imagine what he’ll charge his constituents to get it.