Tesla receiving $65 million tax break to build new factory in Texas

As the Tesla family of cars increases, they need ever more factories to supply the vehicles the public is demanding. Tesla will build a new factory earmarked to manufacture the Cybertruck in Austin, Texas. The company has been searching for a new location for month with different locations vying for the extravagant billionaire’s attention.

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Tesla isn’t wasting any time – ground has already broken on this new factory in the Silicon Hills area of the Texas capitol. At the company’s Q2 earnings call this week Elon Musk announced the new location and that the construction had already “started this weekend.”

It is an interesting change in strategy for the US-based company. In recent times their major manufacturing expansions have been built in China. But as relations between the Communist Party and the United States devolve, it made more sense to bring jobs back to the States. Furthermore, the city of Austin gave Tesla about $65 million in tax breaks to bring the factory to Texas.

The city did this to attract what is now the most valuable car manufacturer in the world, by market capitalisation, which will deliver create about 5,000 jobs for the local economy. As most of the manufacturing is automated, the majority of these jobs will be low-earning positions – Reuters have reported that the average salary will be around $47,000, considered low in the world’s largest economy.

The new factory will cost about $1.1 billion to build. It will mostly be geared towards building the Cybertruck, but Tesla also plan for this factory to assist in the assembly of the Model Y and Model 3 cars. At a later stage, it is also slated to manufacture the Tesla Semi.

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