Tesla Selects Southeast Austin Location For New Manufacturing Facility

Corridor Staff

Texas is the official destination of Tesla’s, an electric automaker, next manufacturing plant, which promises to bring at least 5,000 new jobs to the Aust-Travis County Area.

Following months of deliberation with Travis County and Del Valle ISD, Elon Musk, CEO of Tesla, announced the decision on July 22.

The site of the new “Gigafactory” is located off SH 130 and SH 45 just slightly northeast of the Austin Bergstrom International Airport.

The 2,100-acre site is expected to be developed and in production by 2022.

Travis County Commissioners granted the company incremental rebates on the property taxes paid to the county; once the company invests $1.1 billion in the area, they’ll receive a 70% rebate for maintenance and operations property taxes.

The second ‘Incremental billion’ will grant Tesla 75% rebate for taxes associate with it and a following 80% rebate once its invested over $2 billion.

The company has pledged to donate 10% of its pre-incentive tax liability to local nonprofits and educational and transportation causes.

Travis County is expected to receive an influx of around $8.8 million over the first 10 years from the partnership with the company.

However, the company will be required to ensure 50% of its employees at the facility are Travis County residents and must provide a $15 per hour or more minimum wage.

Del Valle ISD approved an incentive agreement with the electric automotive company granting Tesla an estimated $46.4 million tax break over a 10-year period.

The district agreed to cap the company’s 4- to 5 million-square-foot plant’s taxable value at $80 million; the facility is estimated to bring at least $773.4 million in additional taxable value.  

DVISD will receive $776,000 in annual tax revenue from Tesla, according to district officials.

In addition, the district will receive a range of programming, workforce development, and curriculum benefits.

Tesla has partnered with the district in a similar fashion as it has with other school districts like Washoe County School District in Reno, Nevada.

The company funded a robotics coordinator for WCSD that collaborates with other districts across the state of Nevada and has provided training and externships opportunities for teachers to lead robotics clubs and classes.

“Tesla’s Gigafactory Texas will keep the Texas economy the strongest in the nation and will create thousands of jobs for hard-working Texans. I look forward to the tremendous benefits that Tesla’s investment will bring to Central Texas and the entire state,” Abbott said.