Tesla has selected the Austin area in Texas as the site for its largest auto assembly plant hiring at least 5,000 workers.
The company will construct the project on a 2,100-acre tract in Travis County and will get over $60 million in tax breaks from the county and a regional school district.
In a Wednesday afternoon meeting, CEO Elon Musk stated: “We’re going to be building our next Gigafatory in Texas. Right Near Austin, We’re going to make it a factory that’s going to be stunning.”
The new factory will construct Tesla’s upcoming Cybertruck pickup. It will also become the second U.S. factory for the Model Y small SUV.
Last week, the Travis County Commissioners Court voted to authorize a tax incentive deal with Tesla — a reported investment of $1.1 billion in the first five years that would result in a 70% rebate on Operations and Maintenance taxes.
These tax incentives come along those that the Del Valle Independent School District approved before in July, which will permit the company to build on land within the district.
The incentive agreement will permit the automaker to save money on its property tax bill paid to the school district — over $68 million — by capping the property value for 10 years.
Tulsa, Oklahoma, also showed up on the shortlist for possible sites in mid-May.
Together with the factory, Musk also added that the Gigafactory would include an “ecological paradise” environment around it, same as a park.
Governor Greg Abbott said that Tesla is one of the most exciting and innovative companies, and “we are proud to welcome its team to the State of Texas”.
Austin Mayor Steve Adler said that the automaker moving to Austin is exciting and added that the “factory will be better for people and the planet”.