No matter what you think of Elon Musk or his famous brand, Tesla, a decision this past month on selecting Austin for the site of Tesla’s biggest production plant is a win for all Austinites, especially in these pandemic times. Tesla’s new plant is slated to bring on 5,000 new employees in the Austin area who will specialize in assembling two models for Tesla: its new pickup truck slated to be introduced next year, and a Tesla SUV that is already in production. Tesla plans to pay an average salary of $47,147, with entry-level positions starting at $35,000.
Incentive to Come to Austin
Musk was looking for a centralized location in the country for his new plant, and while other locations like Tulsa, Oklahoma, put up a good fight, the city of Austin won out due to its overall incentive package.
Tesla will build on a 2,100-acre site in Travis County near Austin and will receive more than $60 million in tax breaks from the county and a local school district over the next decade. Work on the plant, which will be over 4 million square feet, is already underway, Tesla CEO Elon Musk said.
Where Will Tesla Locate?
Tesla is building the factory on a plot of land east of the Austin-Bergstrom International Airport, next to about two miles of Texas’ Colorado river. The land is largely unused right now, although a sand and gravel mining company does operate in the center of the development.
Future site of Tesla plant in Southeast Austin
The Irony
While we are happy to have this economic boost come to Austin, the irony of Tesla choosing ATX as its largest location is that currently, Tesla isn’t allowed to legally sell its vehicles in Texas. Why? Because Texas state law requires that cars can only be sold through franchised dealers, not company stores like Tesla. We will see if that law flexes over time, but for now, Texans will only be allowed to make Teslas, not buy them!
More Efficient, Easier on the Environment
While many Tesla executives were pushing for Austin as the next choice, the ultimate reason Tesla chose Austin was to cut down on its delivery timeline to customers in the Northeast. East Coast customers will no longer have to wait for a car to be transported from Tesla’s Fremont factory in Northern California, and the company will save on fuel and transport costs as well.
What do you think about Tesla coming to Austin? Let us know in the comments below!
