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Budget watchdog warns Tesla Gigafactory fight could be 'race to the bottom'

How desperate are the states in the US Southwest for a Tesla Gigafactory? Maybe a little too desperate, according to the California Budget Project. CBP says that the five states that are vying for the new big battery plant from Tesla and Panasonic are really in a "a race to the bottom from which no real winner may emerge." The CBP issued an open letter to leaders in those states that called for "greater openness in the process, strong accountability measures, and cooperation – not competition – among the states." Basically, what CBP is saying is that Tesla is trying to get too good a deal from whichever of the five states (Texas, Nevada, New Mexico, California or Arizona) will be picked for the Gigafactory to be built (well, the first one, at least). We have known for a long time that these states are fighting amongst themselves, and the CBP says that even though the Gigafactory is "undoubtedly a valuable source of economic growth for its eventual home state," since the public bidding process starts at $500 million in subsidies, the five states 'have more to gain from cooperation than from competition." After all, Tesla has made it clear that it needs the Gigafacatory to make its cheaper EV a reality, so CBP is suggesting that the states communicate with each other so that no one offers too many tax breaks in the "harmful pattern of one state 'winning' a high-profile competition." The $500 million could be better spent on other things, CBP argues, and wonders if Tesla would be "receptive to a multi-state dialogue." Your Houston News notes that Tesla is asking the states "not to discuss their offers, and states aren't talking." Tesla did not have anything more to add to AutoblogGreen, but the company has said that an official announcement on the location of the first Gigafactory is coming toward the end of this year. For now, you can read CBP's open letter in full below. An Open Letter to Five States' Officials About Tesla Motors The announcement earlier this year by Tesla Motors that it planned to establish a major electric-car battery factory in one of five western states has set off a bidding war among officials in these states. Yesterday, CBP Executive Director Chris Hoene joined with leaders at Good Jobs First and peer organizations in the other states to direct an open letter to state officials calling for greater openness in the process, strong accountability measures, and cooperation - not competition - among the states.

Tesla spies something that begins with the letter D

Lest there be any doubt to the contrary, Tesla is a company on the move. Following the sensational Tesla Roadster, the Model S is now humming down roads across the country and around the world. And there's more to come: the entry-level Model 3, the upcoming Model X crossover... and something else. Two somethings, to be precise, going by this latest, cryptic tweet from Tesla chief Elon Musk.
The image enclosed appears to show the front of a Model S peering out from under a partially open garage door emblazoned with the letter D. Just what that letter stands for, we don't know. Usually we'd guess it stood for "diesel," but given that Teslas are powered purely by electricity, that'd probably be viewed as a backwards step. Drive? Possibly, if Tesla has an all-wheel-drive sedan in the works (which is does).
Whatever it is, we'll have to wait until October 9 before Tesla reveals the full thing. At that point it will also reveal "something else," though it's given even less indication as to what that might be. The Model 3? Production-ready Model X? A new Roadster? We'll find out in a week's time.

Koenigsegg sees new Tesla Roadster as the 'gauntlet' thrown down

Christian von Koenigsegg, the man behind the company that holds the current record for world's fastest car, does not like to be outdone. So he did not particularly enjoy hearing the numbers regarding the forthcoming next-generation Tesla Roadster and its vaunted 1.9-second 0-60 mph time. "We kind of had our future mapped out, and then we heard about the new Tesla Roadster and its insane acceleration numbers, and we thought 'Damn, that's put the gauntlet down,'" the Koenigsegg founder and CEO told Top Gear. As he told the site, he enlisted his engineers to start running numbers, and within a couple of days, they'd figured out a solution. "The simplest way of putting it is like this: It's combining direct drive with the hybridization we have in a different format with free-valve engine technology, in a peculiar layout," von Koenigsegg said. He said the powertrain could take a car from 0-250 mph in 14 seconds "or something like this," and said he wants to make a combustion engine with a higher power density than an electric powertrain "for as long as possible." His talk about hybrids brings to mind the Koenigsegg Regera plug-in hybrid, which weighs just 3,505 pounds and puts out more than 1,500 horsepower. It does 0-62 mph in 2.8 seconds — impressive, but a full 0.9 seconds less than the Roadster's purported time. And not surprising for a company that is all about maximizing ponies, Koenigsegg likes to geek out over the details of things like the design of the 1,160-hp Agera RS engine. Could he be talking about the same vehicle as the successor to the Agera RS, rumored to be called Ragnarok? Tesla, meanwhile, unveiled said Roadster at Grand Basel in Switzerland — or rather, it showed off what appeared to be a white, empty design shell that had been shown last year at Tesla's shareholder meeting. And don't forget that the mad scientists over at Hennessey are tinkering with the 7.6-liter V8 for the Venom F5, the key to its quest to hit 300 mph. So buckle your seat belts, boys and girls: Things are about to get very fast. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Image Credit: Drew Phillips Green Tesla Koenigsegg Hybrid Performance Supercars PHEV koenigsegg agera koenigsegg regera hennessey venom f5