Tesla Motors Inc (NASDAQ:TSLA) might be forced to reconsider California as a preferred location to host its planned Gigafactory. The populous western state, which has been written-off by many as the contender for the Gigafactory, may soon reappear on the list considering the latest moves made by the state, according to a report from Clean Technica.

Tesla Gigafactory

More friendly norms for Tesla

A number of recent reports have hinted that Nevada and/or Texas are likely to win the Tesla Motors Inc (NASDAQ:TSLA) plant, but some recent moves may put California back among those names. Recently, the California Senate took some big steps to improve its chances of winning the $5 billion Gigafactory.

California Senate Bill SB-1309, which is the latest legislation, would do away with many of the regulatory hurdles that could have prevented Tesla from choosing the state. The new legislation comes despite the fact that the majority of the company’s manufacturing activities are carried within the state.

“This bill would state the intent of the Legislature to enact legislation to expedite groundbreaking and construction in California of a large-scale battery factory to manufacture batteries for both electric-vehicle and stationary uses,” the bill reads. Also, the bill would be effective immediately “as an urgency statute.”

California running short of time

The bill aims to provide financial incentives and changes to regulatory and environmental processes to facilitate the groundbreaking and construction of a large-scale battery factory to produce batteries for both electric-vehicle and stationary uses in California. The bill is consistent with the state’s efforts in its fight against climate change and creating thousands of job opportunities in California.

Though it will definitely improve California’s chances, it might not be enough be enough for Tesla Motors Inc (NASDAQ:TSLA) to circumvent Nevada, Texas, New Mexico, or Arizona and chose California. A few weeks back, Tesla revealed that it would be breaking ground soon for the Gigafactory at one or more sites. This means that California is not left with much time to attract the EV maker’s attention.

Tesla Motors Inc (NASDAQ:TSLA) Gigafactory is expected to produce batteries for 500,000 vehicles and lower the cost by around 30%, according to the company. A report from Sanford C. Bernstein stated that if the costs drop below $200 a kWh, then battery-powered vehicles could compete with conventional ones without subsidies.