Photo: Tesla
After months of going back and forth and of strenuous wooing on the part of authorities, the location for the second U.S. Gigafactory has been confirmed: Austin, Texas.
Texas has been the primary contender for the spot ever since Tesla CEO Elon Musk announced plans for a second assembly plant, which would undertake construction for the insanely anticipated Cybertruck and the long-delayed Semi. Tulsa, Oklahoma was a serious contender as well, and the community here even tried to make the location more attractive to Musk by appealing to his massive ego: they “built” him a giant statue in his likeness.
Texas didn’t do that, for the record. The location proved irresistible to Tesla on the count of having one of the most educated young workforce in the country and offering an “ecological paradise” for the 2,100-acre site in Travis County, just outside Austin. Tax incentives played the decisive part, though: Tesla will be getting $60 million in tax breaks from the county over the next 10 years.
As per the agreement, Tesla will build here the largest Gigafactory to date and will employ some 5,000 people. Tesla will pay them a minimum $15 an hour and offer health insurance, paid leave and other benefits, according to Musk, speaking on Tesla’s second-quarter earnings conference call. Tesla has committed to making a $1.1 billion investment in the area.
In addition to the Cybertruck and the Semi, the Texas Gigafactory (which is the official name) will handle production of the Model Y for the East Coast market.
Somehow ironically, Tesla cannot sell its cars directly to residents of Texas, due to a law that specifically prohibits in-person purchases from manufacturers. Texans still buy Teslas, though, but transactions are made over the Internet or phone, and are completed as out-of-state transactions before the vehicle ships to Texas.
Texas didn’t do that, for the record. The location proved irresistible to Tesla on the count of having one of the most educated young workforce in the country and offering an “ecological paradise” for the 2,100-acre site in Travis County, just outside Austin. Tax incentives played the decisive part, though: Tesla will be getting $60 million in tax breaks from the county over the next 10 years.
As per the agreement, Tesla will build here the largest Gigafactory to date and will employ some 5,000 people. Tesla will pay them a minimum $15 an hour and offer health insurance, paid leave and other benefits, according to Musk, speaking on Tesla’s second-quarter earnings conference call. Tesla has committed to making a $1.1 billion investment in the area.
In addition to the Cybertruck and the Semi, the Texas Gigafactory (which is the official name) will handle production of the Model Y for the East Coast market.
Somehow ironically, Tesla cannot sell its cars directly to residents of Texas, due to a law that specifically prohibits in-person purchases from manufacturers. Texans still buy Teslas, though, but transactions are made over the Internet or phone, and are completed as out-of-state transactions before the vehicle ships to Texas.
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