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Tesla to build its 'Gigafactory' in Nevada




The Tesla logo is shown on the front of a new Tesla Model S car at a Tesla showroom on November 5, 2013 in Palo Alto, California.
The Tesla logo is shown on the front of a new Tesla Model S car at a Tesla showroom on November 5, 2013 in Palo Alto, California.
Justin Sullivan/Getty Images

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Tesla Motors announced Thursday it will build its so-called "Gigafactory" in northern Nevada.

The automaker company's CEO Elon Musk vowed to spend $5 billion on a factory the size of 174 football fields that will mass produce cheaper batteries.  

Alan Ohnsman, who covers the auto industry for Bloomberg News, explains how the Silver State won and what this means for the auto industry.



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