Musk also said Tesla could build more than one giant battery factory in the next few years.
The project in Nevada will cost $5 billion and involve Panasonic as well as other partners.
“This is great news for Nevada. Tesla will build the world’s largest and most advanced battery factory in Nevada which means nearly one hundred billion dollars in economic impact to the Silver State over the next twenty years. I am grateful that Elon Musk and Tesla saw the promise in Nevada. These 21st century pioneers, fuelled with innovation and desire, are emboldened by the promise of Nevada to change the world. Nevada is ready to lead,” stated Governor Brian Sandoval.
Through economies of scale, the gigafactory will help Tesla's plan to sell the new Model 3 compact sedan at US$35,000 or under starting in 2017.
Tesla also considered sites in New Mexico, California, Arizona, and Texas.
Source : teslamotors.com