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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.

Tesla expects another higher-volume deal with Toyota in next few years

Four months have passed since Toyota ended its relationship with Tesla Motors, in which the electric-vehicle specialist supplied full lithium-ion battery packs to the Japanese behemoth for its RAV4 EV rollout, of which 2,500 vehicles will be completed. Now, Tesla founder and CEO Elon Musk has been heard suggesting that a future collaboration is likely within the next two to three years, and that it will probably be much larger than the last one.
Both Tesla and Toyota have sung each other's praises in the not-too-distant past, Toyota telling Autoblog back in May, "We have a good relationship with Tesla and will evaluate the feasibility of working together on future projects." According to Automotive News, Musk said of the Japanese giant, "We love working with Toyota... We have a huge amount of respect for them as a company and certainly much to learn."
Interestingly, though, the two automakers have rather divergent strategies for eco-friendly automobiles. Toyota, as you're surely aware, is the clear-cut leader in hybrids and has thrown its massive support in the direction of hydrogen fuel cells, while Tesla has invested heavily in battery-electric technology and high-speed charging stations.