Tesla Could Receive $65 Million in Tax Breaks for Cybertruck Factory in Texas
【Summary】The battle to woo Tesla for its Cybertruck factory continues to heat up, as Texas is the latest to dangle excessive tax breaks to the electric automaker.
Everyone wants a piece of Tesla. The electric car company's stock is soaring and the American brand is still looking for a place to build its Cybertruck factory. Missouri recently made headlines with a $1 billion package for a proposed Cybertruck factory, but it's not the only place that's waving money around to attract Tesla CEO Elon Musk. According to Reuters, a central Texas county that includes Austin approved a plan to provide the automaker with nearly $65 million in tax rebates.
Texas Counties Approve Tax Rebates
According to the outlet, commissioners in Travis County voted in favor to provide Tesla with a tax rebate worth approximately $14.7 million if the automaker builds its Cybertruck factory in the area. The Del Valle school district also approved a $50 million incentive, bringing the tax rebates up to a total of $65 million.
Reuters claims that Tesla asked Travis County for an 80 percent rebate on its property taxes for 10 years. That would be worth $14.7 million. The automaker also asked for a 65 percent rebate for the next 10 years after that. For the money, Tesla would construct its Cybertruck factory in the area that would bring 5,000 new jobs, the majority of which would be low-skill ones. The average annual salary is expected to be approximately $47,000, which, as the outlet points out, would be considered low for the county.
Texas is just another state that's fighting for Tesla's business. Tulsa, Oklahoma and Joplin, Missouri are two other proposed locations for the automaker's factory. We've also heard rumors about a possible facility in Nashville, Tennessee. When it comes to outright money, Joplin takes the lead with a $1 billion package.
Why Tesla Needs Another Factory
Tesla's in desperate need for another facility. Currently, the electric automaker only has one manufacturing plant in America, which is in California. The new facility will act as the primary location for Cybertruck manufacturing and will also be used for a little bit of Model Y production for the East Coast.
According to The Verge, Tesla is apparently looking into a 2,100-acre site near the Austin-Bergstrom International Airport. The automaker has an option where it can purchase the land outright for $5 million. The outlet claims Tesla would spend $1.1 billion to erect a 4 to 5 million square foot factory.
Tesla, according to the report, will also put 10 percent of the county's tax rebate back into the local Texas community. "Tesla consistently emphasized their desire to invest in the community, especially as it related to job training and workforce development (to include Houston-Tillotson University and Del Valle schools), public transportation, and affordable housing," wrote the county commissioners in the agenda for the meeting. "Travis County had as its goal creating a long-term philanthropic partnership with Tesla, not just a transactional agreement to be reviewed once a year.
Vineeth Joel Patel
Joel Patel has been covering all aspects of the automotive industry for four years as an editor and freelance writer for various websites. When it comes to cars, he enjoys covering the merger between technology and cars. In his spare time, Joel likes to watch baseball, work on his car, and try new foods
Electric Truck Startup Bollinger Motors Partners With Roush on Commercial Platforms For EVs
BMW Looking to Launch a New Modular EV Platform by 2025
Volkswagen to Revive Scout Name With Fully-Electric Off-Roaders
Microsoft Partners With Volkswagen To Test Its HoloLens 2 AR Headsets
Supply of 2022 Audi, Porsche, Volkswagen EVs Sold Out
GM’s Plan to Sell More EVs Than Tesla Hinges on Offering More Affordable Electric Models
General Motors Has Already Replaced the Batteries in 62% of 2017-2019 Bolt EVs as Part of Recall, NHTSA Report Shows
2023 Subaru Solterra Priced Higher Than Toyota bZ4X
- Ford's Lincoln Star Concept Offers a Glimpse into the Electric Future of the Luxury Brand
- Honda Announces Plan to Invest $40 Billion Into Electrification Goals
- Tesla Plans to Start Work on a New Plant in China to Double its Production Capacity
- Elon Musk's Newly Acquired Stake in Twitter is Even Bigger Than its Co-founder and Former CEO Jack Dorsey
- Polestar to Collaborate With its Suppliers to Speed up the Development of an Entirely Climate Neutral Electric Car by 2030
- Toyota-backed Autonomous Driving Startup Pony.ai Closes on the First of its Series D Funding, Valuation Climbs to $8.5 Billion
- Kia Debuts the Redesigned 2023 Telluride SUV at the New York Auto Show, it Comes Packed with Safety Features
- Lucid Group Announces Agreement With Government of Saudi Arabia to Purchase 100,000 of its Vehicles Over the Next Decade
- BMW iVentures Announces Lead Investment in Mangrove Lithium, a Company Developing ‘Green Lithium’ Refining Technology
- Tesla’s German Gigafactory Delivers the First Model Ys After Officially Starting Production