Tesla will build Gigafactory in Nevada

© Tesla MotorsAssembling Tesla’s Model S at the Fremont plant

The state of Nevada offered Tesla a 1.25 billion in tax incentives over the period of 20 years, which – considering the scale of the project – means that the company will operate in the state of Nevada essentially tax free for 10 years.

Gigafactory will be built in Tahoe Reno Industrial Center, outside the city of Sparks.

Gigafactory will manufacture batteries for Tesla cars. Panasonic is among other companies involved in Gigafactory.

Gigafactory will lower the costs of 1 kWh of energy stored in an automotive battery by over 30% already in the first year of production.

Tesla manufactures the successful Model S, with virtually all elements of it being manufactured at a plant in Fremont, Ca, taken over from Toyota. Production plans for 2014 assume manufacturing 35 thousand vehicles. In 2015, after the introduction of the budget Model X, this number is expected to rise to 100 thousand cars.

The Gigafactory is an important step in advancing the cause of sustainable transportation and will enable the mass production of compelling electric vehicles for decades to come. Together with Panasonic and other partners, we look forward to realizing the full potential of this project.

Elon Musk, Chairman and CEO of Tesla Motors