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Message: Re: Tesla Supply Chain, including ZEN? More than a battery factory

I would add the following:

- It's a win-win for Nevada and Tesla, the tax break is sizable for Tesla.

- There were some compliants about the deal with respect to the environment. It was interesting to note the following remark by Ethan Elkind, associate director of the climate change and business program at the University of California, Berkeley, School of Law: "By locating the Gigafactory in Nevada, Tesla is likely to create a much bigger environmental footprint than if they had located in California," he said. "Compared to Nevada, California has better land-use policies, health and safety protections, ...". Perhaps, Ethan Elkind should have read the statement again from Tesla point of view...may be the underlined portion was the reason for Tesla to lean toward (a more business friendly) Nevada, since who would want to get caught in an environmental nightmare? Too much environmental protection, or a potential of having to deal with many (sometimes, surprised additional environmental protection) would scare business away...there must be a reasonable limit.

- The Gigfactory is more than a baterry factory. It is designed to house, power generators such as solar enegery collectors, and wind power generators. Power storage development and facilities will be includes, and this technology would be for available for application elsewhere as well. Tesla will need all kinds of high quality graphite for these.

- Graphite is just part of the cost of producing batteries. But the price may be high for high quality material, but the cost should not be a surprise for people in the graphite industry. Tesla, with its long-term contracts could negotiate a "good" price which would be acceptable to the suppliers. Again, it has to be a win-win to make it work in this business, since they would need each other.

- Perhaps, Nevada site is much better (larger land "footprint", not necessarily environmental footprint, to accommodate the sheer size of the facility) than what can be found in California, in term of space and proximity to related industries. California, might be perceived as a state with excessive environmental protection from Tesla point of view.

goldhunter

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