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California Economist: No Surprise Tesla Chose Nevada

Tesla Motors

In a big blow to California, Nevada Governor Brian Sandoval says Tesla Motor Company will build a car battery plant in the Silver State.  Sandoval says it will be the world’s biggest and most advanced of its kind. 

California was one of five states vying for the plant that is estimated to build enough batteries to power a half-million vehicles by the year 2020.

Stephen Levy  with the Center for Continuing Study of the California Economy says he wasn’t surprised the electric car company chose Nevada over the Golden State.

Levy: “Manufacturing unless it’s very very very high tech, locates where there are lower land and labor costs.”

Levy says California’s an expensive place to live, and that’s an obstacle to attracting a large manufacturing labor force.   

Nevada’s Governor says the ‘gigafactory’ will employ 6,500 people with an average wage of at least $25 dollars an hour. He says the project will add four percent to the state’s gross domestic product.