Missouri Offers Heaps of Incentives to Have Next Tesla Gigafactory Built

by Denis Gurskiy

The Tesla Gigafactory sweepstakes have recently heated up as Joplin, Missouri has thrown its hat into the ring and officially put in a bid to have Tesla’s newest Gigafactory, which will be producing the Model Y and Cybertruck, be constructed within its city.

A month ago, Elon Musk stated that Tesla has started scouting locations in the Central US to find a location for its new Gigafactory.

Many cities have already been rumored to be on Tesla’s shortlist such as Austin, Texas, Nashville, Tennesee, and this one big field in Oklahoma.

One formal bid that we now know of publicly comes from Joplin, Missouri, spearheaded by their President of the Chamber of Commerce, Toby Teeter who previously reached out to Musk via Twitter.

The deal has since changed and has gotten much sweeter for Tesla as the incentives total about $1 billion.

  • A 1,042-acre site that would be sold at a 50% discount to Tesla.
  • A 100% tax break for 12 years.
  • State incentives that would include Missouri Works tax credits to provide capital as well as funding to buy equipment and assistance with workforce training. Missouri automotive manufacturing incentives, Missouri Builds, and state and local sales tax breaks are part of the package.

Teeter also anticipates that Tesla could save $75 million annually on payroll when compared to the higher cost of living in areas like Austin and Nashville. 

While the financial incentives seem to be great, that is not the only consideration that Tesla will take in its search for a the perfect site. Musk has previously stated that:

“Incentives play a role, but so do logistics costs, access to a large workforce with a wide range of talents, and quality of life,”

Alaska could give Tesla land for free in the Arctic Circle but it wouldn’t mean much due to the logistical nightmare of transporting anything or finding enough people to work.

Teeter has also accounted for that and makes sure to highlight that, “the property pitched to Tesla offers access to BSNF rail service, is near Interstates 44 and 49 and is within minutes of the Joplin Regional Airport.”

Additionally, Teeter points out that it might be a good spot for its upcoming Semi as well:

“We’re also the trucking capital of America. That gives Tesla front-row access to its next market with four of the largest trucking companies in the nation within a 60-mile radius.”

Tesla has not announced any sort of timetable for when they will finalize a site, but given that the Cybertruck is supposed to start production in 2021, we anticipate that the site should be picked relatively soon, unless Tesla plans to produce the first batch at Freemont and not have the first electric trucks come off the line at a new factory.

What do you guys think? Let us know down in the comments below.

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