Tesla Announces Austin, Texas as its choice for Cybertruck Factory

Elon Musk announced Tesla will be building its next factory in Austin to huge excitement among the residents and the local government.

Tesla, Inc. announced the location of its next US Gigafactory at a press conference after declaring the second quarter results of Tesla, putting to rest all speculations about the venue. Elon Musk, the billionaire CEO, revealed that the upcoming Cybertruck will be built in Austin, Texas, and construction is “already underway, it started this weekend.”

It was recently announced that Texas will grant tax breaks to the company running into millions of dollars from the county and a local school district. Musk has big plans for the Cybertruck Gigafactory and wants it to be showcase open to the public. There will be a boardwalk and hiking and biking trails. “It’s going to basically be an ecological paradise. Birds in the trees, butterflies, fish in the stream,” he said.

The other cars that will be added to the assembly line include Model Ys and Model 3s, as well as the Tesla Semi, Musk said. It will be the company’s fourth factory in the US. Tesla already has a Gigafactory in Nevada, one in California, and a solar factory in New York. It has one in Shanghai and another one just outside Berlin, which is still under construction.

Tesla Cybertruck Factory Austin Texas Gigafactory Elon Musk

A lot of states were wooing Tesla CEO Elon Musk in a bid to win the rights to the location

The present site is located over 2100 acres of land near the Austin Bergstrom International Airport. Tesla’s senior global director of public policy said this of the site: “The potential is just great for recreation, for beauty, and the vision of being able to potentially transform an old mining site into a sustainable factory with recreational opportunities — that’s just a vision that sits perfectly with our mission.”

Cities in Play for Cybertruck Gigafactory 5

A lot of states were wooing the Tesla CEO in a bid to win the rights to the location. He has been scouting within the states and even outside with rumors floating of one in the UK and another in India. A giga factory in any state gives rise to employment opportunities and boosts up ancillary businesses, which in these times is a great help.

Tesla plans to hire up to 5,000 workers at an average salary of $47,147, with entry-level positions starting at $35,000. It will invest at least $1 billion and is planning to make a factory of between 4 and 5 million square feet.

“Tesla is one of the most exciting and innovative companies in the world, and we are proud to welcome its team to the State of Texas,” Texas Gov. Greg Abbott said in a statement. “Texas has the best workforce in the nation and we’ve built an economic environment that allows companies like Tesla to innovate and succeed. 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 to the entire state.”

Kevin Stitt, the governor of Oklahoma, said in a statement that he will be “actively recruiting Tesla’s supplier base to Oklahoma,” and that just being a finalist has raised the state’s profile.

“Over the past few months, Tulsans and Oklahomans as a whole showed the nation and the world that our state is worthy of being one of two finalists for an innovative, cutting-edge company like Tesla,” Stitt said. “I wish Elon Musk and Tesla all the best. In fact, I wish them so much success they are forced to expand again because I know just the place.”

Steve Adler, the mayor of Austin, said in a statement that the factory will be “an important economic boost in East Austin, especially as we fight the economic effects of the virus.”

Tesla moving to Austin is exciting. It gives us three things we need in east Austin. It gives us thousands of good wage jobs that don’t need a 4-year degree. Its factory will be better for people and the planet,” Adler said.

There are some residents of Austin who have reservations about the CEO’s behavior regarding his threat to pull out of Alameda County in California amid the corona crisis. Workers Union at the county meeting lobbied for minimum wages for the lower level staff and some perks and privileges, which Tesla has agreed to.

But overall, people were excited about the opportunities the factory will generate for the county and city.

Tesla’s second-quarter earnings topped Wall Street expectations. Its earnings per share was $2.18 against an expected -0.15. Its revenue was $6.0 billion against the expected $5.2 billion.

Anna Domanska
Anna Domanska is an Industry Leaders Magazine author possessing wide-range of knowledge for Business News. She is an avid reader and writer of Business and CEO Magazines and a rigorous follower of Business Leaders.

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