Tesla announces Nevada as factory finalist

PALO ALTO, Calif. ( & KRNV) -- Tesla Motors has announced that northern Nevada is a finalist for the site of their planned Gigafactory.

The Tesla Gigafactory will be a $5 billion Lithium Ion battery factory, which is expected to lower production costs for battery cells. Tesla is looking at lower pricepoints for their Generation III cars. The automaker hopes to make 500,000 cars by 2020.

"As we reach for our goal of producing a mass-market electric car in approximately three years, we have an opportunity to leverage our projected demand for lithium ion batteries to reduce their cost faster than previously thought possible," Tesla wrote in an online blog announcement. "The Gigafactory is designed to reduce cell costs much faster than the status quo and, by 2020, produce more lithium ion batteries annually than were produced worldwide in 2013."

According to Tesla's blog, Nevada is a finalist for the factory along with New Mexico, Texas and Arizona.