After years of courting, Tesla finally settles with Austin to build its $1 billion factory that will produce its truck lineup.
The latest deal between Tesla and Austin stands as one of the biggest in history. According to people with inside information, the assembly plant will cost at least $1.1 billion. The plant will be built in Travis County and will employ 5,000 people once it is operational.
A huge investment for Tesla
The assembly plant will be built on a 2,100 acre land in Travis County. Once the plant operates, wages will start at $35,000 annually, including benefits. This is a huge investment for Tesla when most automakers are outsourcing their assembly division outside of the country.
According to the company, 25 potential employees will have a “qualifying” job with a minimum compensation of $74,050. The majority of the job opening will be categorized as a middle-income job with annual compensation of $47,147.
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The plant is expected to produce some of the automaker’s upcoming Cybertruck lineup. On top of that, the plant will also produce the Model Y SUV, making it the second site to do so.
The initial plan for the construction is to break ground around the third quarter of the year. However, Elon Musk said that initial work had already started last week.
Describing the proposed plan, Mr. Musk said:
“We are going to make it a factory that is going to be stunning. It is right on the Colorado River. So we are actually going to have a boardwalk where there will be a hike and biking trail.”
The recent confirmation of the Austin plant is evident in how aggressive Tesla is expanding its production. Recent reports revealed that the company is inundated with order, hence the decision to expand production.
The Austin facility will join the company’s growing assembly lines, including those in China and Europe. The Austin facility will further supplement the company’s Fremont facility. The Fremont is responsible for producing the Model X, Model Y, Model S, and Model 3.
Before the recent confirmation, the automaker has considered several locations around the country. Among those under consideration are locations in Nashville, Tennessee, and Tulsa, Oklahoma.
Oklahoma was one of the frontrunners to win the project, but the city did not publicize its proposed incentive package. As for the case with Austin, two incentive packages were publicly shared as proposals are being worked out. Tesla has seriously considered all the locations and was impressed by all the proposals.
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