Tesla is heading to Texas to build its largest auto assembly plant, CEO Elon Musk announced during the electric car company’s second-quarter earnings call. Musk said work is already underway to build the 2,100-acre site.
The factory will be in Travis County, near Austin, and will employ at least 5,000 people with a minimum wage of $ 15 an hour, according to the Associated Press. Tesla has said it will invest $ 1.1 billion.
Musk described the new gigafactory as “an ecological paradise” on the Colorado River, with a boardwalk and a cycling and hiking trail. He said the site will be open to the public.
The company will use the site to build its new Cybertruck truck, as well as the small Model Y SUV. Musk said the company will produce “many” vehicles in the “long term.” On its website, Tesla says that Cybertruck production will begin in late 2021.
Over the next 10 years, Tesla will receive more than $ 60 million in tax exemptions from the federal government and a local school district, according to the AP.
Texas Governor Greg Abbott welcomed Tesla to the state, saying the company is “one of the most exciting and innovative companies in the world, and we are proud to welcome his team to the State of Texas.”
“Texas has the best workforce in the nation and we have created an economic environment that allows companies like Tesla to innovate and succeed,” Abbott said in a press release. “Tesla’s Gigafactory Texas will maintain the strongest Texas economy in the nation and create thousands of jobs for working Texans. I look forward to the tremendous benefits that Tesla’s investment will bring to Central Texas and the entire state.”
In a summary of Tesla’s Q2 update released Wednesday, the company said that despite the fact that the main factory in Fremont, California, was closed for almost half the quarter due to the coronavirus pandemic“Companies have demonstrated strong resilience in unprecedented times.”
“We believe that the progress we made in the first half of this year has positioned us for a successful second half of 2020. Production from our existing facilities continues to improve to meet demand, and we are adding more capacity,” the company said. “Later this year, we will be building three factories on three continents simultaneously.”
Musk said during the earnings call that the California factory “will continue to grow.” Along with the new factory in Texas, Tesla is also building a factory in Germany and has a factory in Shanghai.
Musk added that the company was “super impressed” by Tulsa, Oklahoma, which was also a primary contender for the new Tesla factory, and said that “they will strongly consider Tulsa for future expansions Tesla may have in the future.”
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