Tesla Motors Inc (NASDAQ:TSLA)’s $5 billion factory may be set up in any of the three states, according to Arizona governor Jan Brewer, but Tesla is still considering four states for setting up the so called ‘gigafactory,’ says a report from BizJournals.

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“The original four states — Arizona, New Mexico, Texas and Nevada — are still in the running, and those are the only states we are considering for the Tesla gigafactory,” said company spokeswoman Alexis Georgenson.

Tesla to consider various factors to select a site

Tesla Motors Inc (NASDAQ:TSLA) is considering places like Pinal County and Buckeye in Arizona, Reno, Nev., Albuquerque, N.M., and San Antonio, Texas. According to the site selection and real estate executives, a site near the Reno Stead Airport is the first preference for the 6,500-worker factory.

Tesla Motors Inc (NASDAQ:TSLA) could not get the bill passed in Arizona, which would have allowed the company to sell its vehicles directly to consumers. According to Georgenson, the Model S maker will try once again in 2015 to get the bill in its favor.

“We look forward to re-engaging next year,” she said.

Tesla Motors Inc (NASDAQ:TSLA) will select the state to set up its ‘gigafactory’ after considering the following factors such as land availability, tax incentives and tax structure. The dependence of the state on green energy would also count for the reason that Tesla will want to equip its factory with renewable energy sources like wind and solar power.

Gigafactory may boost American content

Tesla’s much talked-about ‘gigafactory’ is expected to increase the American-made content by almost 90% by locally making the batteries. Panasonic, a major battery supplier to Tesla is not very confident about the company’s plan, but there is a lot of public and private support for the Model S maker.

If Tesla Motors Inc (NASDAQ:TSLA) achieves its 90% American content target, it will be ahead of the Ford F-150, which has around 75% of its parts made in the United States. Ford has made various efforts to bring back the production in America.  The gigafactory may also produce ion-lithium batteries for other companies and non-automotive companies.

On Wednesday, Tesla Motors Inc (NASDAQ:TSLA) shares were up 2.68% to $199.11.