Tesla Motors is building a new factory in Nevada to produce batteries for its electric cars, the company announced Thursday (Sept. 4).

The state has been selected as the official site for Tesla's futuristic-sounding Gigafactory, according to Elon Musk, chairman and CEO of the Palo Alto, California-based Tesla Motors.

"The Gigafactory is an important step in advancing the cause of sustainable transportation and will enable the mass production of compelling electric vehicles for decades to come," Musk said in a statement.

Nevada Gov. Brian Sandoval called the announcement "great news for Nevada," and said the Gigafactory could inject nearly $100 billion into the state's economy over the next 20 years.

"I am grateful that Elon Musk and Tesla saw the promise in Nevada," Sandoval said in a statement. "These 21st-century pioneers, fueled with innovation and desire, are emboldened by the promise of Nevada to change the world. Nevada is ready to lead."

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