Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Tesla wants to start building a new U.S. vehicle plant this summer

Published 06/18/2020, 01:44 PM
Updated 06/18/2020, 03:35 PM
© Reuters. FILE PHOTO: The Tesla factory is seen in Fremont

By Joseph White

DETROIT (Reuters) - Electric vehicle maker Tesla Inc (O:TSLA) wants to start building a large vehicle assembly plant in the southwestern United States as early as the third quarter of this year, the company told Texas officials in documents made public this week.

But the company is still pitting Texas and Oklahoma against each other in an effort to secure tax breaks, the documents show. The plant would build Tesla's electric pickup truck and Model Y SUV, according to reports.

Tesla told officials in Travis County, Texas, the automaker wants to invest about $1 billion to build a 4 million to 5 million square foot vehicle assembly plant employing 5,000 people on the grounds of what is now a cement operation near Austin. But it needs tax breaks to make the site competitive with an alternative location in Oklahoma, according to documents filed with Texas officials.

The Austin-American Statesman reported details of the company's filings.

Tesla officials could not immediately be reached for comment, but Tesla Chief Executive Elon Musk previously hinted about a Texas plant, and Texas Governor Greg Abbott has spoken with Musk about the possibility.

Oklahoma's Secretary of Commerce Sean Kouplen said Tulsa remains in the hunt for the plant.

"We’ve pulled together a compelling, well-balanced and, more importantly, a responsible performance-based incentives package to attract Tesla to Oklahoma," he said in a Thursday statement.

Tesla's sole U.S. vehicle assembly plant in Fremont, California, covers 5.3 million square feet - a large plant, but not large enough for the growing company. Tesla has had to build cars under a tent adjacent to the plant.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Musk clashed with California officials after Alameda county officials ordered the Fremont factory to halt production and comply with coronavirus stay-at-home orders that took effect in March. He threatened to move future operations to Texas or Nevada. The California plant has since reopened.

Latest comments

they conveniently leave out that this is happening because Musk is tired of garbage blue states
Oh look, another leftist tree hugger wants to move his business to red states for tax benefits.
If he doesn’t, not ok. If he does, not ok. When is it ok then?
You tell me.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.