REPORT: Tesla Gigafactory Site Chosen By Kyle Anderson

According to a new report from CNBC this afternoon, a site in Nevada has been chosen as the future home of the Tesla Gigafactory.

The report cited sources from the Nevada governor's office who said the location "[is] a go, but they are still negotiating the specifics of the contract."

Nevada's Governor Brian Sandoval is expected to hold a press conference in Carson City, Nev., on Thursday afternoon. A media advisory from the state said that the governor will make a "major economic development announcement.''

Tesla Motors Inc. (Nasdaq: TSLA) had been scouting locations in Arizona, California, Nevada, New Mexico, and Texas for the plant.

The Tesla Gigafactory is expected to revolutionize lithium-ion battery production and increase Tesla's output dramatically. According to Tesla, the plant will be able to supply power for more than 500,000 vehicles annually by 2020.

Tesla is expecting to spend around $5 billion on the construction of the factory, and is hoping to have the project completed by 2017. The Gigafactory will employ approximately 6,500 and will reach full output capacity by 2020.

Chief Executive Officer Elon Musk has previously stated that he wants to begin construction by the end of 2014.

In July, Tesla announced that the Japanese electronics giant Panasonic had joined as an investing partner in the new mega-factory. Panasonic will reportedly be investing between $200 and $300 million, but that number could climb as high as $1 billion.

Panasonic will be responsible for the equipment used to build the lithium-ion batteries. Tesla will be handling the costs of the buildings and the site.

The Tesla stock price was flat in after-hours trading following the report, but an announcement tomorrow could bring a spike to TSLA's price. Tesla stock has been trading at all-time highs over the last week, near $288 per share, following a new partnership in China and a stock recommendation from Stifel Nicolaus.

Editor's Note: According to Money Morning's Chief Investment Strategist Keith Fitz-Gerald, TSLA's run is just beginning. In fact, he sees the stock doubling in the next 12 months...

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