Tesla to Spend Over $1 Billion on Texas ‘Gigafactory’

Tesla to Spend Over $1 Billion on Texas 'Gigafactory' Tesla to Spend Over $1 Billion on Texas 'Gigafactory' An aerial view of Tesla Shanghai Gigafactory on March 29, 2021 in Shanghai, China. (Xiaolu Chu/Getty Images)

By Luca Cacciatore | Tuesday, 23 November 2021 08:23 PM

Electric vehicle company Tesla will spend at least $1.06 billion on a new “Gigafactory” in Austin, Texas, CNBC reported on Tuesday.

Texas Department of Regulation construction filings from Nov. 19 showed that significant elements of the complex are expected to be completed on Dec. 31, which will be used to produce the company’s forthcoming Cybertruck, as well as Model 3 and Model Y vehicles.

“Gigafactory Texas is progressing as planned,” Tesla said during a shareholder conference on Oct. 7. “We are in the process of commissioning equipment and fabricating our first pre-production vehicles.”

The Texas filings show that Tesla started construction on the 2,0000-acre Travis County facility, first announced in 2020, in September and November of the same year.

Steve Adler, the mayor of Austin, said in October that Tesla “fits right in” to the city. Travis County, the home of Austin, approved to give $14.7 million in tax breaks to Tesla towards the plant in July of last year, according to The Washington Post.

“We’re going to make it a factory that is going to be stunning; it’s right on the Colorado River. So, we’re actually going to have to have a boardwalk over you, hiking, biking trail. It’s going to basically be an ecological paradise,” Elon Musk, co-founder and CEO of Tesla, said in 2020.

The company also announced plans to move its headquarters from Palo Alto, California, to Austin, Texas, during their October shareholder conference, per The New York Times.

Tesla is currently constructing a plant near Berlin and operates factories in California, Nevada, and Shanghai.