There have been reports that Tesla Motors Inc (NASDAQ:TSLA) has already decided to build its Gigafactory near Reno, Nevada, but wherever it finally gets built, you can bet that Tesla has a lot of state support already set up. Washington state officials confirmed yesterday that they had been aggressively competing for the Gigafactory to be built in their state, including the personal involvement of governor Jay Inslee, and still didn’t get short-listed, reports Austin Jenkins for KPLU.

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Tesla’s Gigafactory highly sought development project

Tesla Motors Inc’s (NASDAQ:TSLA) Gigafactory, the enormous battery facility that help Tesla scale up production and sell oversupply to other companies, is expected to employ as many as 6000 people directly and indirectly boost the rest of the local economy wherever it’s built, and industrial consultant John Boyd called it the most “coveted economic development project in North America today.” States routinely offer tax breaks, favorable zoning decisions, and improvements to infrastructure among other things to entice companies to set up shop. Since the Gigafactory is such a big project, and one that is unlike any other US factory, it would be prohibitively expensive for Tesla to relocate once it settles in, so states have a big incentive to make a short-term sacrifice (like tax breaks for the first few yeears) for a longer term gain. By the same token, Tesla won’t announce the site until every detail is hammered out.

The Washington state Chamber of Commerce said that it will continue to compete for other Tesla Motors Inc (NASDAQ:TSLA) jobs as projects come up even though it struck out on the attracting the Gigafactory.

Rumors that workers at Reno site were let go today

While Tesla Motors Inc (NASDAQ:TSLA) hasn’t confirmed or denied the reports that it has already broken ground in Reno, there are rumors online that many of the workers at the site were let go today and that the job has been closed indefinitely. We haven’t seen anything to confirm the rumors, but if they’re true it implies that Tesla is doing preliminary work in multiple locations so that it can keep to its schedule while continuing to negotiate terms, and that it has recently cut Reno from its short list. The alternative, that Tesla CEO Elon Musk shut down the site because its location was leaked, is a little too conspiratorial to take seriously.