Buy Photo This is the site at the Tahoe Reno Industrial Center that has been graded in preparation for a possible Tesla battery gigafactory site. (Photo: Hilary Swift/RGJ)Buy Photo


4:20 p.m. update:

Legislative leaders reached by phone Thursday took a largely wait-and-see approach to news that Musk is asking for a $400 million-$500 million incentive package from the state that ultimately wins the gigafactory. They said they want to see the details first.

"Any time that we can lure a new industry with a real return on our investment, that's always something we should be looking at," said Assembly Speaker Marilyn Kirkpatrick, D-North Las Vegas. In the past, Kirkpatrick has been a critic of tax incentives that eat into education funds and has demanded more reporting on the results of incentives awarded by the state.

Senate Majority Leader Mo Denis, D-Las Vegas, echoed Kirkpatrick's stance, saying new business is good for the state but he would have to review any incentive package that takes shape. State economic development officials have refused to comment on what incentives are being offered to Tesla.

"We want to diversify our economy so we want to attract good projects to come here," Denis said. "I'm in support of that. But we'll have to see all the specifics."

Assembly Minority Leader Pat Hickey said Nevada is an attractive location even without offering the kind of huge cash incentives available in states like Texas.

"Our location, our current tax structure, the transportation availability, the access to lithium," Hickey said. "I think Nevada is a pretty good deal because of what we have to offer regardless of incentives."


3:21 p.m. update:

At the Economic Development Authority of Western Nevada, CEO Mike Kazmierski says it will be tough to compete with bigger states for the gigafactory in terms of dollars but Nevada has other advantages.

Kazmierski on Nevada's gigafactory chances: "I'd be reticent to say anything's been decided. We just have to make them see our advantages."

CLOSE What you need to know about today's announcement. Liz Margerum/RGJ

3:12 update: Here's the latest photo of the Reno-area site that Tesla Motors has been grading to prep for a possible battery gigafactory. Tesla confirmed today it has broken ground at the Tahoe-Reno Industrial Center, with possible plans to make lithium-ion batteries for its electric cars.

2:15 p.m. update:

Tesla confirmed Thursday it has broken ground near Reno on a much anticipated "gigafactory" battery plant that many say would be a game-changer for Northern Nevada's economy.

The work is being done at the Tahoe-Reno Industrial Center in Storey County, just east of the Reno-Sparks area. The Reno Gazette-Journal was the first to report in June that Tesla was likely the company working on the land at the industrial center.

The location in Northern Nevada remains one of five potential sites that could get the gigafactory where the electric car maker would manufacture lithium ion batteries for its Model 3 car. The other states in the running are Arizona, California, New Mexico and Texas. The final site will be announced in the coming months, the company said.

"We see these concurrent efforts as prudent," Tesla said in its press release.

HOW THEY DO IT: What's in a lithium-ion battery

BY THE NUMBERS: 10 things to know about a Tesla gigafactory

"Any potentially duplicative investments are minor compared to the revenue that could be lost if the launch of Model 3 were affected by any delays at our primary gigafactory site."

Lance Gilman, the developer of the industrial center where Tesla is doing work, told the RGJ Thursday the project is one of the largest grading projects ever in the United States.

"We have finished a superpad to accommodate 5 million square feet," Gilman said. "We moved several million cubic yards of material."

He added Tesla is still working on other sites.

"Speed is critical to them. We finished this in 3 1/2 weeks," he said. "There's nowhere else in world you can get a project up as fast as here. Tesla can start pouring concrete next week if they desire."

Gilman said reports of Tesla stopping work at the Northern Nevada industrial center are partially true.

"They have reached transition point that they're going to add square feet," he said.

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2:54 p.m. update:

Elon Musk says the state of Nevada is expected to kick in about 10 percent of the cost, or about $400 million to