Odds Favor Texas as Location for Tesla’s Cybertruck Gigafactory

Cybertruck presentation photos
Where will Tesla decide to build the Cybertruck Gigafactory? Photo by u/Kruzat (Wikimedia).
  • Elon Musk and Tesla are currently scouting locations for where to open their Cybertruck factory.
  • Nevada offered Tesla a $1.3 billion package in 2013 to open up a plant in the state. Tesla is likely eyeing some kind of incentive to help make its decision again.
  • Which state is the best bet to open up this plant?

Since the heavily-hyped announcement of the Tesla Cybertruck, there has been rampant debate as to where and when the Cybertruck Gigafactory will open up. According to the betting odds, the state of Texas is favored to land the plant but are they the best bet? Let’s take a closer look at the options.

Cybertruck Gigafatory Location Odds

Where Will The Cybertruck Gigafactory Be Located? Odds
Texas +200
Tennessee +300
Oklahoma +550
Kansas +750
Illinois +1500
Indiana +1500
Kentucky +1600
Louisiana +2200
Missouri +2200
Wisconsin +2200
Arkansas +3300
Iowa +3300
Nebraska +4000
Minnesota +4500
Canada +5500
North/South Dakota +5500

Odds taken Mar. 12th.

What Is The Cybertruck?

Tesla is one of the world leaders when it comes to electronic cars but they’ve mostly only done sedans in the past. There’s the Model S, the Model 3, the Model X, the Model Y, Tesla Semi, and a Tesla Roadster that’s supposed to arrive on the scene in 2020. The latest addition to the line is the Cybertruck, which is supposed to target pickup truck fans.

In the United States, there are currently 6500 regular, fossil fuel trucks sold per day and Tesla is now trying to take a bite out of that market. Their Cybertruck, which is also known as the Tesla Truck or the Tesla Pickup, is going to start at $39,900 to be priced competitively against the models that Toyota, Ford and Chevrolet put out.

While the prices might be comparable, that’s where the similarities end. The Cybertruck, which is designed by Franz von Holzhausen, doesn’t look anything like a standard pickup truck. It has a futuristic feel to it with sharp angles and a metallic finish.

As far as the features, this truck will have self-leveling suspension, on-board power inverters, which means that you’ll be able to plug in power tools, an air compressor for pneumatic tools and a towing capacity starting at about 7500 pounds. More expensive models will be able to tow up to 14000 pounds.

A couple of other unique features is that the car itself will be bullet-resistant against nine millimetre caliber bullets. It’s a very different look and feel than your traditional truck but that’s clearly what Tesla was going for here.

Who Will Offer Tesla an Incentive?

Like many other major companies that are thinking about where to build their plants, Tesla has gone public with the news. If you’re wondering why that might be the case, it’s because they want to see who will give them some incentives to open up the plan in their state.

Typically, these types of plants will bring with them thousands of high-paying jobs. That’s attractive to every state as bringing in 1000 good tax payers – or more – and putting good people to work is a big win for the state. We saw Tesla employ this same strategy in 2014 with Nevada when they earned a $1.3 billion package from the state.

In 2013, the finalists were Arizona, California, New Mexico and Texas before Tesla eventually selected Nevada. This time around, the main front runners appear to be Texas (again), Indiana, Kentucky, Michigan and Tennessee.

What’s The Best Bet?

At this point, I would put Texas in the lead because last month, Tesla architect Elon Musk hinted that the factory could be in the Lone Star State. Texas has a huge fund for luring businesses exactly like this (The Texas Enterprise Fund) and previously offered Musk $2.3 million to relocate SpaceX’s – another Musk company – launch facility to the state.

However, I wouldn’t be surprised if Tennessee is the final winner and that’s the state I’d bet on. TechCrunch recently reported that Musk wants to have a factory where both the Cybertruck and the Model Y crossover can be built, and Nashville, Tennessee would be a great fit.

Musk recently tweeted out that he’s scouting for locations and that the factory will be in Central USA. Tennessee would figure to be more central than Texas, although neither are really in the center of the country.

Tennessee looks like it’s going to be a hub for these types of vehicles as they have already struck a deal with Volkswagen to spend $800 million to expand its plant in Chattanooga for electric vehicle production. Nissan is also nearby as they’ve been making the Leafs in Smyrna since 2013.

Although it seems like it’s about a coin flip between the two states, my hunch is that it’s more likely to be in Tennessee, based on all of the recent reporting. That being the case, I’ll take a flier with the slightly bigger payday and take the +300 here.

 

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