Tesla Cybertruck factory a step closer to reality in Texas

Travis County approves $14 million tax break package for $1.1 billion factory in Austin

Austin is one of the two leading candidates for Tesla’s Cybertruck factory, along with Tulsa, Oklahoma. (Photo: Tesla)

Tesla’s proposed $1.1 billion Cybertruck factory received a 20-year incentives deal from Travis County, Texas, on Tuesday.

The approval of the economic incentives package helps Tesla clear a final governmental hurdle should it decide to build its new factory in Austin, Texas.

If Tesla (NASDAQ: TSLA) moves forward with the project in Austin, it will receive around $14 million in property tax breaks in exchange for promises to hire at least 5,000 workers in four years, ensure pay starts at $15 an hour and goes up over time, and ensures at least half the workers are from Travis County.

The city of Austin is in Travis County in south central Texas. The 2,100-acre piece of land where Tesla wants to build its Cybertruck factory is just outside Austin city limits.

Last week, Tesla received approval for a $46.4 million tax deal from the Del Valle School District to build its proposed factory on district land.

Austin is one of the two leading candidates for the factory, along with Tulsa, Oklahoma.

Elon Musk, Tesla’s owner, hasn’t said when he is announcing his pick. Tesla could announce its choice for the new factory site during its quarterly earnings call July 22, analysts have speculated.

Click for more FreightWaves articles by Noi Mahoney.

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Noi Mahoney

Noi Mahoney is a Texas-based journalist who covers cross-border trade, logistics and supply chains for FreightWaves. He graduated from the University of Texas at Austin with a degree in English in 1998. Mahoney has more than 20 years experience as a journalist, working for newspapers in Maryland and Texas. Contact nmahoney@freightwaves.com