Slashdot Mirror


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.

14 of 172 comments (clear)

  1. Texas? by cdrudge · · Score: 4, Insightful

    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.

    1. Re:Texas? by necro81 · · Score: 5, Insightful

      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.

      It makes perfect (business) sense to locate it in a state with depressed wages, huge amounts of available land, little-to-no zoning restrictions, lax environmental regulations, and politicians that are at least a buy-able as the rest. Hell, if it's good enough for the oil and gas industry...

    2. Re:Texas? by StoneCrusher · · Score: 5, Insightful

      This is why you're not a CEO or politician. Building this factory in Texas would make it harder for politicians to fight "Texas Made" cars. Sure the mouth pieces and opposition will still be there, but the mouth pieces promoting the cars would get a lot louder. Once you get Texas on board, a lot of southern states are easier. They are looking how to move forward, not punish for history.

      Remember the next round of Tesla cars will be SUVs and bog standard sedans. Not pick up truck territory, but certainly Texas soccer mom and Austin city car markets.

    3. Re:Texas? by alen · · Score: 3, Insightful

      what state is the largest producer of clean wind energy?
      hint, it's not california

      Texas is a big tech hub

    4. Re:Texas? by luis_a_espinal · · Score: 4, Interesting

      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.

      It makes perfect (business) sense to locate it in a state with depressed wages, huge amounts of available land, little-to-no zoning restrictions, lax environmental regulations, and politicians that are at least a buy-able as the rest. Hell, if it's good enough for the oil and gas industry...

      Really? You really want to go there? True that huge chunks of employment in Texas is in the Walmart-like category for people with no specialized skills. But for manufacturing and up, wages are decent and the economy is booming. Go to Austin, Dallas or Houston for good paying jobs without the ridiculous hassles that you see in the Bay area: ageism, gentrification, and most important of all, absurd zoning laws that prevent creation of new housing/rental units to accommodate the growing population (and which causes housing/rental prices to be absurd to anyone except couples where both partners are in IT/STEM/Software.). The same is true in Seattle, Portland ,The Triangle and Denver (in particular Denver.) Texas is doing fine, more than fine. Just because there are a bunch of backwater NIMBY small towns full of folks who thing America's best years were 30-40 years ago, that doesn't mean the state is crap. People are moving there in droves for a reason, small businesses are booming, people in manufacturing are doing well. And most importantly, whether you work in STEM or in a factory plan, you can still afford an actual house that is not a hole in the wall (Sillycon Valleeey, I'm looking at you.)

      Texas is doing well, and will be doing well for a long time. It is fair to criticize, but try to give some credit where credit is due every once in a while instead of blindly following the bash-your-favorite-dead-horse crowd.

  2. I was worried for a minute by Gothmolly · · Score: 4, Funny

    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.
  3. Re:What are the other 99% supposed to do? by zwede · · Score: 3, Interesting

    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...

  4. Texas! by sycodon · · Score: 4, Insightful

    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.
    1. Re:Texas! by cayenne8 · · Score: 3, Insightful
      Yep.

      The over regulation and high taxes in CA are the killer for any business possibilities there. Large companies are leaving California due the the bad fiscal management out there and overbearing govt restrictions on businesses out there.

      You'd think at some point, sensible folks would see this and do something to curtail the problem, but when you let political philosophy outweigh what common sense should present to the current vision, you get much of what you see in CA, and more recently in the entire Federal admin overall.

      Sadly, some seem to hold their philosophical vision over and above solutions that could fix things at ALL costs. Some folks wold rather fail by breaking, rather than to bend and survive.

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    2. Re:Texas! by cant_get_a_good_nick · · Score: 4, Insightful

      What made the oil industry successful is oil. Whatever regulations or non-regulations you want to give, if there's no oil, there's no oil industry.

      It can be argued that silicon valley grew because of California University school system. A good chunk of which is publicly funded. Remember Sun stood for Stanford Univeristy Network. Google started at Stanford. A good chunk of Apple Mac OSX and iOS is BSD, developed at University of California, Berkeley. The Internet as we know it started at Berkeley - one of the first TCP/IP stacks was just known as Berkeley Sockets. The Internet was at first a DARPA project (government funded) for distributed command and control. The work then went to California universities, trying to share scarce computing resources.

  5. Re:Make it a law by Ol+Olsoc · · Score: 3, Funny

    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.
  6. Jobs by sjbe · · Score: 4, Informative

    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.

  7. Re:What are the other 99% supposed to do? by necro81 · · Score: 5, Insightful

    How many factory workers were middle class, during this heyday of which you speak

    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.

  8. Which California? by Dan+East · · Score: 3, Funny

    Which California? I hear there are 6 now.

    --
    Better known as 318230.