Sources: Tesla chooses Nevada for battery factory

Scott Sonner / AP

Tesla Motors will announce Thursday that it will build its coveted $5 billion lithium battery factory in Northern Nevada and the Legislature will hold a special session next week to discuss the state's incentive package, according to a source and media reports.

The news follows the announcement from Gov. Brian Sandoval’s office about a “major economic development announcement” at 4 p.m Thursday at the Capitol Building. The release didn't explain any further details.

“I am sure it’s Tesla because why else would there be the urgency,” said a state leader who did not want to be identified because the deal has not be publicly announced.

According to a CNBC report, a source in the Nevada's governor's office said: "That's a go, but they are still negotiating the specifics of the contract." The source told CNBC it could be a week before the deal is official.

In an interview today, Sandoval said he is still meeting with Nevada legislative leaders to convene a special session. Sandoval declined to disclose any details and said an announcement would be made Thursday at a 4 p.m. in the Capitol. Asked if Tesla had a business license in Nevada, Sandoval said, "I don't know."

When asked for details, Sandoval said repeatedly: "An announcement will be made tomorrow." He did say Tesla officials will be at the news conference.

Sandoval declined to say whether he will recommend giving Tesla $50 million to help the company to build its $5 billion plant east of Reno in a development park in Storey County.

This summer, Tesla started groundwork at an industrial center outside of Reno. It did the same site work in other states, a practice that's common for the company.