Tuesday, March 18, 2014

Everything's Giga in Texas

Posted By on Tue, Mar 18, 2014 at 10:22 AM

click to enlarge A Tesla Model S charging. - TESLA MOTORS
  • Tesla Motors
  • A Tesla Model S charging.

Everything's bigger in Texas. From barbecue and music festivals to oil money and hats, it's the state that goes big in everything it does. That's why Texas state Rep. Jason Villalba penned a letter to Tesla Motors CEO Elon Musk citing the state's business-friendly climate for why it should build a $5 billion gigafactory there to produce products for the company's line of upscale electric cars. 

Texas is one of four states, along with Arizona, Nevada and New Mexico, competing to house the plant, which would be powered with wind and solar energy, span up to 1,000 acres and employ about 6,500 people to construct lithium-ion batteries for its cars. But that state's longstanding laws protecting auto dealerships may jeopardize its chances, reports the Texas Tribune. One of those protections—a ban on direct sales—auto dealerships say is crucial to protecting them from Tesla and other companies that sell directly to consumers, bypassing the dealership industry entirely.

"The issue of where we do business is in some ways inextricably linked to where we sell our cars," said Diarmuid O'Connell, Tesla's vice president of business development, told Bloomberg.

So while Texas and most things in it may be big, it may not be giga.
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