UPDATE 1-Tesla wants to start building a new U.S. vehicle plant this summer

DETROIT (Reuters) – Electric vehicle maker Tesla Inc (TSLA.O) wants to start building a large vehicle assembly plant in the southwestern United States as early as the third quarter of this year, the company told Texas officials in documents made public this week. But the company is still pitting Texas and Oklahoma against each other in an effort to secure tax breaks, the documents show. The plant would build Tesla’s electric pickup truck and Model Y SUV, according to reports. Tesla told officials in Travis County, Texas, the automaker wants to invest about $1 billion to build a 4 million to 5 million square foot vehicle assembly plant employing 5,000 people on the grounds of what is now a cement operation near Austin. But it needs tax breaks to make the site competitive with an alternative location in Oklahoma, according to documents filed with Texas officials. The Austin-American Statesman reported details of the company’s filings. Tesla officials could not immediately be reached for comment, but Tesla Chief Executive Elon Musk previously hinted about a Texas plant, and Texas Governor Greg Abbott has spoken with Musk about the possibility. Tesla’s sole U.S. vehicle assembly plant in Fremont, California, covers 5.3 million square feet – a large plant, but not large enough for the growing company. Tesla has had to build cars under a tent adjacent to the plant. Musk clashed with California officials after Alameda county officials ordered the Fremont factory to halt production and comply with coronavirus stay-at-home orders that took effect in March. He threatened to move future operations to Texas or Nevada. The California plant has since reopened.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s