Tesla eyes $68 million in incentives in Texas for Cybertruck Gigafactory

Elon Musk tweeted Tesla has not purchased land in Texas yet but is exploring options.

Tesla has submitted an application in Austin, Texas, for tax incentives to build a proposed 5 million square-foot Cybertruck plant. (Photo: Tesla)

Tesla has submitted an application for $68 million in tax incentives to build an electric vehicle manufacturing facility in Austin, Texas, according to an application with the Texas Comptroller’s office.

Tesla paid $150,000 on May 21 to file the application for land owned by the Del Valle Independent School District in the Austin area. The incentives would save Tesla money on its property tax bill paid to the school district by capping the property value for 10 years.

The plant could create an estimated 5,000 jobs with wages of up to $74,000 per year, according to Tesla’s application with the school district.

Tesla has been searching for a site for a manufacturing facility for its Cybertruck and Model Y production.

Charisse Bodisch, the Austin Chamber of Commerce’s senior vice president of economic development, said the chamber “has engaged in multiple discussions with Tesla,” but the company has not made a final decision about where it wants to put its new factory, according to news outlet KXAN.

Elon Musk, founder and chief executive officer of Tesla, tweeted that the company has the “option” to purchase the land, but Tesla “has not exercised it.”

Asked on Twitter if other possible sites remain in the mix, Musk said the company continues to consider “several options.”

Tulsa, Oklahoma, is another site Musk has mentioned for a new Tesla production facility.

“Tesla will really be missing out if they don’t open up here! Best place in the country,” Oklahoma Secretary of Commerce Sean Kouplen tweeted late Thursday.


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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