DETROIT (AP) -- Electric car maker Tesla Motors says it is preparing a site near Reno, Nevada, as a possible location for its new battery factory, but is still evaluating other locations.
In a statement, Tesla says it broke ground on the Nevada site in June, and adds that it will decide on the final location for the $5 billion factory in the next few months.
California, New Mexico, Arizona and Texas are also in the running for the factory. Competition is intense for the plant, which Tesla says could employ 6,500 people by 2020.
Tesla wants the factory to supply batteries for its Model 3 electric car, which is set to go on sale in 2017.
Earlier Thursday, Tesla and Panasonic Corp. announced that they will collaborate on the battery factory.