Tesla News: Stockton, Calif. Is a Top Contender for TSLA Gigafactory

Stockton, Calif., is the top contender in the state to get Tesla Motors’ (TSLA) new gigafactory.

tsla-teslaWhat makes Stockton such a prime target for the Tesla battery factory? Quite a few things, actually.

The city has a surplus of industrial-zoned areas, a  bay that could be used for shipping, it’s located near an airport and railroad, has access to a major freeway and is only a short drive from of other facilities run by Tesla, The Los Angeles Times notes.

While the lists of pluses for setting up in Stockton is long, there are also a few factors that could keep it from getting Tesla’s new gigafactory. These negatives include more government restrictions, more taxes and high costs of labor, reports L.A. Times.

Another strong candidate for the Tesla gigafactory is Reno, Nev. Recent construction in the area has led some to believe it’s the new home of the battery gigafactory. However, all work at the site has been stopped, possibly due to missed deadlines.

Reports also claim that Tesla has signed a deal with Panasonic concerning the gigafactory. This deal would see Panasonic contributing $200 to $300 million to the initial building of the factory and $1 billion after it’s all said and done.

TSLA shares were up 1% as of Wednesday afternoon.

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Article printed from InvestorPlace Media, https://investorplace.com/2014/07/tsla-tesla-15/.

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