California In the Running For Tesla Gigafactory
An anonymous reader writes Thanks to some clean-energy tax incentives approved late this spring, California appears to be in the running again for Tesla's "Gigafactory". From the article: "The decision should have been made by now, and ground broken, according to the company's timeline, but is on hold, allowing California, which was not in the race initially — CEO Elon Musk has called California an improbable choice, citing regulations — to throw its hat in the ring. 'In terms of viability, California has progressed. Now it's a four-plus-one race,' said Simon Sproule, Tesla's vice president of global communication and marketing, referring to the four named finalists — Texas, Arizona, New Mexico and Nevada — for the prize. That's heartening. Having the Gigafactory would be a vindication of Gov. Jerry Brown's drive to make California the home of advanced manufacturing, of which Tesla's battery technology is a prime example. With its technology, 'Tesla may be in position to disrupt industries well beyond the realm of traditional auto manufacturing. It's not just cars,' a Morgan Stanley analyst told Quartz, an online business publication last year.
Why the hell is Texas in the running? I mean, it makes perfect sense to reward a state that makes it as difficult as possible to sell a vehicle with Tesla's sales model.
Slashdot hadnt yet posted anything about Elon Musk today. My groupthink-o-meter was starting to dip back down below 'fellate'.
I want to delete my account but Slashdot doesn't allow it.
The plans for this factory have it automated to hell, employing a skeleton crew of human beings.
The plans include 6,500 employees.
https://www.greentechmedia.com...
It makes perfect (business) sense to locate it in a state with reasonable wages not drive up by unreasonable taxes and regulations, huge amounts of available land, common sense zoning restrictions, reasonable environmental regulations, and politicians that are actually interested in your business becoming a success . It's what's made the oil/gas/information services/computer/auto/semiconductor/etc. industry successful so far.
When Fascism comes to America, it will call itself Anti-Fascism, and tell you to give up your guns.
frankly I dont know why anyone would want to open a business in cali right now. Business taxes are high, cost of living is high, regulations are horribly complex. Id much rather open a business pretty much anywhere else in the country over cali
have you seen my sig? there are many others like it but none that are the same
If you want to sell a Tesla in Calistan then it has to be built in Calistan by illegal aliens.
Rush Limbaugh called. He wanted us to tell you that you're a little over the top.
The shepherds did so well protecting the flock that the sheep no longer believed that wolves existed.
How many factory workers were middle class, during this heyday of which you speak?
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Now if only trucks or trains could be used to transport lithium...
Jesus was all right but his disciples were thick and ordinary. -John Lennon
That is a tiny fraction of what US manufacturing used to employ
It's ONE COMPANY and a relatively small one at that. Do you expect them to single handedly employ everyone looking for work? 6500 jobs is a LOT of jobs but way to try to diminish a good thing there Debbie Downer.
During the heyday of the American middle class, GM employed hundreds of thousands of people.
They still do. GM presently directly employs roughly 219,000 people. Last I checked that qualifies as "hundreds of thousands of people". GMs suppliers employ about 6 times that many people for products made by GM. (look it up - there is roughly 6 manufacturing workers in the supply chain for every one at a major auto maker) And furthermore there is is a multiplier effect whereby every $1 spent in manufacturing results in approximately $1.35 in additional economic activity which means more jobs. The death of US manufacturing has been greatly exaggerated.
A surprisingly large number. Going back to the early days of the model T, Ford (the person) recognized that if he paid his people better than the usual factory wages, he would 1) have lower employee turnover, 2) short-circuit squabbles with the nascent labor unions, 3) increased productivity and throughput (see 1 and 2), and most importantly 4) be creating a population that could actually buy the product he was trying to produce.
More recently, during the heyday that the GP spoke of (1940s through 1970s, then declining through the early 2000s), an auto worker could expect a modest, but stable, middle-class lifestyle from his (it was mostly men) factory job. It was blue-collar, didn't require a college degree, and could support a family on a single income. The large tracts of modest homes that made up Detroit are a testament to this fact. The decline in manufacturing around Detroit has directly led to the general poverty of the city, the depopulation, the urban blight (whole blocks of abandoned homes), and eventual bankruptcy of the city.
If you can get it, the same can be said for an automotive job today, or building airplanes for Boeing. Or, until their decline, the textile industries in the American southeast or the lumber industries in northern states. There are fewer guarantees with a manufacturing job today - it may not be lifelong employment, and your prospects during retirement look less secure. Still, they are decent jobs for decent people, and (right or wrong) the kinds of jobs that cities and states climb over each other to get.
Which California? I hear there are 6 now.
Better known as 318230.
You would think that Tesla would build the plant in Detroit, not only is land cheap and most likely loads of incentives but it would be a direct slap in the face to the big three automakers.
frankly I dont know why anyone would want to open a business in cali right now.
Depends on the business. For certain types of businesses, California is where the talent is located. Not to say you can't locate a successful company elsewhere (you can!) but there is a reason you find a lot of tech companies in California just like there is a reason you find a lot of manufacturing companies in Michigan, a lot of finance companies in New York, etc. Despite the problems California didn't become the economic powerhouse it did by random chance. It got there because it has the right combination of institutions, resources, talent and location.
Id much rather open a business pretty much anywhere else in the country over cali
Then I'm guessing you haven't opened a lot of businesses. There are certain businesses that make tremendous sense in California and others that make sense elsewhere. Unless you are going to get considerably more specific about what type of business you are planning to open then you are not making any sort of reasonable point.
The trouble in setting up there would be, what are you going to use for a workforce?
You think there is a lack of a willing and capable workforce in Detroit Metro? You could not be more wrong. There are reasonable reasons to pick places other than Metro Detroit to build a factory but the blight in Detroit City and perceived lack of a workforce is not among them. Honestly I can't think of many better places to build a factory if you really look at the evidence. The opportunity is definitely there. You might find cheaper labor elsewhere but you aren't going to find a more capable labor force anywhere for manufacturing.
Likely as not, not locals
You bet. There is more manufacturing and engineering talent in Detroit metro than all but a handful of places in the US. Did you forget that GM has their headquarters in downtown Detroit? Where do you think they get their people from? Do you think it is by accident that almost every single car supplier of consequence has engineering operations somewhere near Detroit? Michigan ranks 4th in the nation in high tech jobs. Metro Detroit is the second largest source of tech jobs of any metro area in the US. If you want manufacturing talent you could do a lot worse than Michigan.
So yeah, the locals will do just fine.
how are you going to convince folks to me to Detroit, not much incentive to move to a barren, economically sparse, drug infested/violence infested area.
If you think that properly describes all of Detroit then you aren't wanted there and you clearly know little about the area. Downtown Detroit near the Renaissance Center has actually seen a pretty nice revival. Not to say the city overall doesn't have a long way to go (it very much does) but there are big parts of it that are nothing like the hell hole you are describing. Guys like Dan Gilbert are buying up all kinds of property and businesses are setting up shop left and right. It's a hell of an economic opportunity if your investment horizon is sufficiently long term. There are three major stadiums, a convention center, a university, three casinos, GM, outstanding restaurants, Whole Foods, and lots more all downtown. You really think Whole Foods is going to set up shop in the middle of a blighted, drug infested area? I just had a relative open up an upscale coffee shop in Downtown Detroit and another relative of mine has a fast casual restaurant at the Renaissance Center.
Furthermore it doesn't have to be in Detroit City. The Detroit Metro area is genuinely nice. I live in Oakland County which is immediately to the north of Detroit City and is one of the ten wealthiest counties in the entire US, has a AAA credit rating and is a genuinely nice place to live. Washtenaw and McComb counties are equally nice places. The University of Michigan as well as several other excellent local universities provides an outstanding local talent pool.
only problem with that is he would have the UAW up his ass every day and no one wants to deal with the UAW
have you seen my sig? there are many others like it but none that are the same
..., not to mention that Texas has no income tax; what moron would build a factory in California? Elon was just being nice when he didn't categorically rule it out when asked.
You realize that both the Tesla factory and the SpaceX factory are in California, right? So I guess Elon Musk is a moron...
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