Harry Reid: Elon Musk Might Be 'Playing' Nevada

Sen. Harry Reid of Nevada wouldn't put it past Tesla CEO Elon Musk to be toying with the state.

Reid told the Reno Gazette-Journal that he thinks Musk has started a "bidding war" between Texas and California for sites on which the electric car startup's massive battery factories will be built.

Muck acknowledged on Tesla's most recent earnings call with analysts that what he termed a construction pad has been created in Nevada, But he said that additional work on the $ 5 billion Gigafactory that could be built there was waiting on moves from the state's government.

Musk seems to be keeping every option - and potential tax and other incentive - open when it comes to this project, which will enable Tesla to have enough lithium-ion battery cells to produce 500,000 cars by 2020. He's indicated that gigafactories could rise in multiple states, and that construction could start soon.

There's no question that Tesla needs the Gigafactory. But beyond that, it's all getting rather vague. And that lends credence to Reid's statements, to the Gazette-Journal, that Musk's ultimate objective is to get the "best deal" for Tesla.