Bidding war for $5B Tesla battery factory like a game of poker
Published 12:36 am Monday, September 1, 2014
LOS ANGELES — From the start, little has been typical about Tesla Motors’ plan for a $5 billion factory to make batteries for a new generation of electric cars.
It’s not just the project’s massive scale, the cutting-edge technology, or even the bonanza of 6,500 good-paying jobs.
It’s how Tesla is deciding where to build.
Through a series of unusual plays, Tesla has five states bidding up subsidy packages to land the coveted plant. The winner is expected to offer the luxury car-maker publicly financed incentives exceeding a half-billion dollars.
Tesla signaled this would be no ordinary competition last fall, when it gathered economic development officials from seven Western states and unveiled its vision for a “gigafactory.” (“Giga” refers to the large amount of power that batteries produced at the plant will store.)