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Texas county approves tax subsidies for new Tesla vehicle factory

Credit: REUTERS/Lucy Nicholson

A central Texas county that includes Austin on Tuesday approved a plan to provide millions in tax subsidies to Tesla Inc if it builds a $1.1 billion vehicle factory in their community.

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July 14 (Reuters) - A central Texas county that includes Austin on Tuesday approved a plan to provide millions in tax subsidies to Tesla Inc TSLA.O if it builds a $1.1 billion vehicle factory in their community.

A majority of commissioners in Travis County voted in favor of providing the electric carmaker with a tax rebate worth at least $14.7 million. One commissioner abstained after asking for a week's delay.

That brings the total amount of tax rebates to nearly $65 million after the nearby Del Valle school district, which includes the proposed factory site, approved a $50 million incentive on Thursday.

Tesla did not immediately respond to a request for comment.

The electric carmaker to date only has a single vehicle manufacturing plant in California and has said it wants to start building a large second plant in the southwestern United States as early as the third quarter of this year. .

The proposed plant would build Model Y sport utility vehicles and Tesla's futuristic Cybertruck.

Commissioners in favor of the agreement decided to move forward after a representative of Tesla said executives of the electric auto maker had met with the governor of a rival state, without naming the state.

The city of Tulsa in Oklahoma has also been campaigning for Tesla to choose it as the location for its new plant.

(Reporting By Joe White and Tina Bellon Editing by Richard Pullin)

((Joe.White@thomsonreuters.com;))

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

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