Electric automaker Tesla Inc. has selected the austin, Texas domain as the largest automotive meeting facility, CEO Elon Musk said Wednesday in the company’s earnings statement in the second quarter.
The new plant, which Tesla says will employ at least 5,000 workers, will build the company’s new Cybertruck van and be an American production facility for the small Model Y SUV, largely for distribution on the east coast.
Tesla will build on a 2,100-acre site in Travis County, near Austin, and get more than $60 million in county tax breaks and a school district over the next decade. State incentives are also imaginable for the plant, which will be more than four million square feet.
The company has committed to invest $1.1 billion and said it would pay a $15 minimum wage consistent with the hour to workers and would provide fitness insurance, paid leave and other benefits.
The dominance of the University of Texas at Austin and generation corporations such as Dell Inc. was a candidate for the plant from the beginning, but Tulsa emerged in mid-May as another possibility.
Tesla doesn’t have much time to run the plant if it needs to meet target production dates. The company says on its online page that the Cybertruck will be held by the end of next year. Tesla did not meet past promised production dates.
Musk would have been with Texas, where his SpaceX corporate rocket operates in Brownsville and McGregor, north of Austin.
The new plant will be Tesla’s largest to date, possibly not employing as much personnel as the 10,000 at its Fremont, California plant. The electric car manufacturer said he was looking for the new plant to be in the center of the country and closer. Eastern markets.
The Fremont plant is lately Tesla’s only car meeting facility in the United States. It has a plant in the United States in Reno, Nevada, where it manufactures batteries for its cars and employs approximately 6,500 people. Tesla also has a plant in Shanghai and under structure in Germany.
Musk was dissatisfied with California, where last year he failed to comply with local orders to remain closed to help stop the spread of the new coronavirus. Musk threatened to move the company’s headquarters out of Palo Alto and all long-term cars at the Fremont plant, a renovated plant that he once controlled jointly through Toyota and General Motors.
The Austin-area Chamber of Commerce says Texas does not have a corporate or non-public source of income taxes. It also promotes the youth of the region as one of the most knowledgeable in the country. Nearly 47% of adults have at least a bachelor’s degree, which places Austin in the top 10 sensitive elementary metropolitan areas, the page says online. But right now, Tesla can’t legally sell its cars in Texas. State law requires cars to be sold through franchised dealerships, not through corporate retail stores such as those operated by Tesla.
Tulsa fought well, but possibly would have been used to win better terms with Texas. Oklahoma has low tax rates and living charges, i.e. low application fees. Musk even recorded the Tulsa before this month.
Oklahoma has had an automaker in the state since General Motors closed its facility in Oklahoma City in 2005, but Tulsa houses an American Airlines maintenance facility that employs about 5,200 workers.