Report: Tesla Close to Choosing Austin?
Tesla CEO Elon Musk has made it painfully clear that Texas is his first choice when it comes to locations for a second U.S. vehicle assembly plant. The executive, disillusioned and annoyed with Silicon Valley and the general California experience, had somewhere in the central or southern U.S. on his mind when he started hunting for a new plant location.
A report out of Austin Monday suggests Tesla could be close to sealing a deal.
While it’s not confirmation of a new plant, the Austin American-Statesman reports that Tesla is negotiating the terms of an incentives deal with the city.
From the newspaper:
The Travis County Commissioners Court is scheduled to discuss the terms of the potential incentives deal in an executive session on Tuesday, according to people with knowledge of the proceedings. A vote is expected in the coming weeks.
No Travis County official would confirm the talks, or what kind of incentives the city’s willing to dangle in front of Musk. A new Tesla assembly plant would bring with it thousands of jobs, as well as the company’s revered/ridiculed Cybertruck.
Wooing a perturbed Musk emerged as a popular pastime for cities in America’s heartland this past spring, with cities like Joplin, Missouri and Tulsa, Oklahoma laying their desire for jobs, jobs, jobs bare both on social media and via back channels. Tulsa went as far as creating a temporary shine to the Tesla co-founder and suggested it would field a fleet of Cybertrucks as law enforcement vehicles.
County officials engaging in a back-and-force on incentives is no guarantee that a Tesla plant (and possibly the company’s corporate headquarters) will set up shop in Austin. It’s a normal part of any jurisdiction’s bid to lure big business. That said, it’s another bit of evidence in Austin’s favor.
[Image: Tesla]
More by Steph Willems
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If Texas is the winner, the arrangement may include a backroom deal to change that state's dealer franchise laws. I can't imagine Tesla building vehicles in a state where they can't sell the product through their stores.
If the idea is avoid the disillusionment Musk says he experienced in the California bay area then the Austin area is probably not a bad choice as long as the facilities are in Travis County and not within the Austin city limits.