Tesla invests over $ 1 billion in massive new plant in Texas

  • Construction on the new Tesla plant in Austin, Texas began in the summer of last year.
  • Documents filed with Texas officials showed the electric vehicle company will spend more than $ 1 billion on the project.
  • The project is expected to create 10,000 jobs.

Tesla is investing more than $ 1 billion in its new Gigafactory in Texas, which is expected to be completed by the end of this year.

Construction records with the Texas Department of Licensing and Regulation showed the electric vehicle company would spend $ 493 million on the general assembly section and $ 182 million on the body shop. Construction of the facilities for these sections, as well as the painting, molding and stamping facilities, will be completed by Dec. 31, according to the documents. The five installations cost a total of $ 1.06 billion.

Electrek first reported the statements.

The company is expected to receive nearly $ 65 million in local tax refunds for the plant and the project is expected to create 10,000 jobs, according to Reuters.

The Texas plant comes as Tesla – like many other companies in the tech industry, including tech giants Oracle and Hewlett Packard Enterprise – will move its headquarters from the San Francisco Bay Area to Texas.

“Gigafactory Texas is progressing as expected,” Tesla said in a slideshow of shareholders last month. “We are in the process of commissioning equipment and manufacturing our first pre-production vehicles. “

Tesla also has factories in California, Nevada and Shanghai, and is building a factory near Berlin, Germany.

Completion of the gigafactory follows the move of Tesla founder Elon Musk to Austin. Musk announced he left California in December 2020, after several months of fighting with the state over coronavirus policies, but many have speculated that the lack of state income tax in the Texas played an important role in his decision.

Musk is reportedly set to sell the last of his California properties – a 47-acre estate in Hillsborough, near San Francisco – and has moved into a small, $ 50,000 manufactured home.


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