Blog Tesla’s Next U.S. Factory Location Could Be Announced Next Month

Tesla offered a few updates on plans to increase factory count during it’s Q1 earnings call.

Chief Executive Elon Musk said an announcement on the location of Tesla’s next factory in the U.S. could come as soon as next month, but likely within three months. And there will be more factory announcements to come.

“So as for how many will be in five years, I’m not, I don’t know right now what that number would be,” Musk said during the company’s Q1 earnings call. “I guess, several more than there are today.”

Tesla’s fourth factory is currently under construction in Germany. Giga Berlin, expected to be completed next year, will be the company’s largest to date. Tesla will first start producing the Model Y in Germany, which will be key in supplying the electric crossover to the European market. Giga Shanghai, which was completed last year, is already in the middle of a massive expansion.

Tesla’s next U.S. factory is expected to build the Cybertruck, and possibly the Semi. Musk said Wednesday that the factory will be massive – large enough to dub a “Terafctory.”

Musk has said on Twitter that the company was scouting the middle of the country for the new factory’s location. He mentioned Texas as a possibility. States including Missouri, Kansas, and Tennessee have all publicly offered incentives to attract the automaker. 

Where do you think the next factory will be located?

 

[kkelley69]

With a large automotive workforce in place due to Mercedes, Hyundai, Toyota, Mazda and Honda having plants, Alabama would be a great choice.

 

[giantshark18]

It's going to Texas. Elon likes that they are open for business while Californians cower in fear.

 

[jboy210]

It's going to Texas. Elon likes that they are open for business while Californians cower in fear.

It will only go to Texas if they:

1. Kill the law prohibiting direct sales to customers. The law put in place by the Texas auto dealer associations massive lobbying of the state legislator.
   
2. Offer Tesla a free 500 acre site with no property taxes the way Germany did and other states are offering.

 

[Jim T]

With Nissan "circling the drain", and already announcing a massive "downsizing", there is a huge "production ready w/ trained automotive manufacturing workforce" automotive factory just outside Nashville (Smyrna, TN) that Tesla may be able to acquire "on the cheap". They not have to build a factory and could be producing the Model Yin no time. Then I could just drive the 12 miles there to pick-up my new Model Y...

 

[jboy210]

With Nissan "circling the drain", and already announcing a massive "downsizing", there is a huge "production ready w/ trained automotive manufacturing workforce" automotive factory just outside Nashville (Smyrna, TN) that Tesla may be able to acquire "on the cheap". They not have to build a factory and could be producing the Model Yin no time. Then I could just drive the 12 miles there to pick-up my new Model Y...

Does Tenn allow direct sales to consumers?

 

[OPRCE]

It will only go to Texas if they:

1. Kill the law prohibiting direct sales to customers. The law put in place by the Texas auto dealer associations massive lobbying of the state legislator.
   
2. Offer Tesla a free 500 acre site with no property taxes the way Germany did and other states are offering.

I don't know if Germany offered any free land but Tesla did end up paying €43M for the GF4 Grünheide site:
Tesla Completed The Gigafactory Berlin's Land Purchase

 

[jboy210]

I don't know if Germany offered any free land but Tesla did end up paying €43M for the GF4 Grünheide site:
Tesla Completed The Gigafactory Berlin's Land Purchase

Thanks for the link. Something I read earlier said the land was free.

Oops here it is, Tesla Cybertruck Gigafactory: Missouri offers land and incentive package in race for factory - Electrek
I am confusing offers.

from article:
Joplin Chamber President here. I’m authorized to give you 100 acres in biz park at crossroads of I-44 and I-49 at the center of the USA, the historic home of battery tech, with four of the largest trucking companies in the world near here. Plus $50+ million in incentives.

Several other state leaders have since also reached out to Musk and Tesla, including in Colorado and Arkansas.

 

[OPRCE]

Thanks for the link. Something I read earlier said the land was free.

Maybe it was tax-free for a few years or something along those lines, as an incentive?

 

[jboy210]

Maybe it was tax-free for a few years or something along those lines, as an incentive?

I suspect Elon would not choose this location over others if they did not put together a nice package. My German friends say the government is pretty much making this a very good deal for Tesla and sweeping away many of the union and other issues for Tesla.

 

[OPRCE]

I suspect Elon would not choose this location over others if they did not put together a nice package. My German friends say the government is pretty much making this a very good deal for Tesla and sweeping away many of the union and other issues for Tesla.

I agree the State of Brandenburg is going the extra mile to expedite the GF4 project but "sweeping away union issues" is a non-starter in Germany. Such a plot between government and any auto-OEM would get the national car industry shut down pronto, by wildcat strike.

More likely the government introduced Tesla to the bosses of IG-Metall and encouraged them to collaborate, which is the standard practice.

 

[TechOps]

It's going to Texas. Elon likes that they are open for business while Californians cower in fear.

Given that Battery Day will be held in the 3rd week of May, in California "or Texas", and that the announcement for the next factory could be coming as soon as next month, it's pretty clear that Elon was strongly hinting it's most likely going to be in Texas.

I do hope he gets the direct auto sale ban struck down before that. Which may be why it's going to take "up to three months"?

 

[Jim T]

Does Tenn allow direct sales to consumers?

Yes they do... Bought both of my Models S at the Brentwood Tesla store (and service center) 28 miles from here...

 

[Alset Srotom]

I agree the State of Brandenburg is going the extra mile to expedite the GF4 project but "sweeping away union issues" is a non-starter in Germany. Such a plot between government and any auto-OEM would get the national car industry shut down pronto, by wildcat strike.

More likely the government introduced Tesla to the bosses of IG-Metall and encouraged them to collaborate, which is the standard practice.

Yeah, in German factories you cant even relocate something as simple as a chair without getting union approval.

 

[OPRCE]

Yeah, in German factories you cant even relocate something as simple as a chair without getting union approval.

It reflects in the auto-worker accident statistics, wherein USA is comparatively horrific. I've personally seen examples over there (e.g. bodyshop at Ford, Kansas City) of how safety circuits were bridged out *in hard- and software* so that one could open a supposedly "foolproof interlocked" door in the safety fence and walk right into a roboticised production cell without interrupting the machines (moving at up to 6m/s) at all. At another point, where a worker had to load large pieces, protected by an interference area light-curtain, the plank-shaped sensors were mounted flat on the floor *outside the fence* such that one could literally step on top of them and again walk right into the live cell for a dance with robots. There were numerous other such violations and these were not just temporary fixes but ran like that for months/years. i.e. fences, guards and safety features were evidently considered entirely optional by management, maintenance personnel and union (not sure if there actually was one) alike.

Such unimaginable conditions in Germany (or Europe in general) would prompt an immediate work stoppage and 3-month H&S audit of the whole plant.

Automaker Worker Safety Not as Good as its Cars - Knowledge at Work

 

[drdumont]

It's going to Texas. Elon likes that they are open for business while Californians cower in fear.

Would that it were. While I have my fingers crossed, Texas' abject stupidity in allowing our duly elected liars, mountebanks. horse thieves and night riders to allow the automobile dealers' influence to ban Tesla from selling in The Lone Star State would probably not endear Texas to Elon Musk & Co.
There had been some rumors of late that there might be a Tesla factory coming soon here, I fear it will go to a state which has not been hostile to Tesla.