Markets

Property Tax Break For Tesla For Locating Factory In Texas

(RTTNews) - A county in central Texas has approved a plan to give millions in tax breaks to Tesla if the luxury electric carmaker builds its next "Gigafactory" at a proposed site there, reports said.

The Travis County Commissioners Court, the local government's administrative arm, hasvoted in favor of providing Tesla with property tax rebates worth at least $14.7 million for building its $1.1 billion factory in that area.

Earlier, the Del Valle school district, which includes the proposed factory site near the Austin airport, is said to have voted to approve Tesla's plan.

The Del Valle school district approved an agreement to grant Tesla almost $50 million in property tax rebates. Tesla has now been offered tax rebates of almost $65 million.

Austin and Tulsa in Oklahoma are vying for Tesla's new Gigafactory.

Tesla has said it plans to build a second plant in the U.S. to manufacture the Cybertruck and the Model Y compact sport-utility vehicle. The automaker currently has only one vehicle manufacturing plant in the U.S. in Fremont, California, which employs about 10,000 people.

According to Tesla, the new factory would create 5,000 jobs, mostly low-skilled, and the company will pay workers an average annual salary of about $47,000.

Tesla has a multi-billion dollar Gigafactory in Shanghai, which is the company's first factory outside the U.S. Construction of the plant began in January 2019 and production commenced in October.

In May this year, Tesla restarted manufacturing operations at its Fremont plant after it was shut down earlier due to the coronavirus pandemic. Production was restarted despite Tesla's stand-off with local officials about whether the plant should remain closed during the pandemic.

Tesla Chief Executive Elon Musk was reluctant to stop production at the Fremont plant even after a shelter-in-place order in mid-March by the counties in the San Francisco area due to the coronavirus pandemic. Musk had threatened to move the company's headquarters out of California as a result of the shutdown.

The Fremont plant builds all the vehicles currently in Tesla's line-up - the Model X, Y, S and 3.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

TSLA

Latest Markets Videos

    RTTNews

    Founded in the late 1990s by Andrew Mariathasan in New York, with the goal of covering Wall Street for a new generation of investors, RTTNews has expanded steadily over the years to become a trusted provider of content for a wide array of subjects across several platforms. RTT's Financial Newswire is relied upon by some of the world's largest financial institutions, including banks, brokerages, trading platforms and financial exchanges.

    Learn More