Tesla Motors (TSLA) CEO Elon Musk is close to naming multiple potential battery sites in at least two U.S. states, and will break ground at each to make sure one is ready to supply lithium-ion packs when needed, Bloomberg reports.
“What we’re going to do is move forward with more than one state, at least two, all the way to breaking ground, just in case there’s last-minute issues,” Musk said in an interview with Bberg. “The No. 1 thing is we want to minimize the risk timing for the gigafactory to get up and running.”
Tesla announced a $1.6 billion convertible debt offering in March to help fund the battery plant. Musk didn’t say which states are the leading candidates or when the company will announce its decision.
The new factory, which according to Tesla will produce batteries for 500,000 vehicles by 2020, is part of Musk’s vision of turning Palo Alto, Calif.-based Tesla into the world’s dominant electric-car maker.
Tesla shares were down by $2.03, or 1 percent, at $204.89 on Wednesday.