Thursday, October 22, 2020
Thursday, October 22, 2020

Tesla to Move California Facility to Texas or Oklahoma: Elon Musk
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Tesla has picked Austin, Texas, and Tulsa, Oklahoma, as finalists for its new U.S. assembly plant, a person briefed on the matter said Friday.

The person says company officials visited Tulsa in the past week and were shown two sites.

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The new factory will be Tesla’s biggest so far. The electric car maker has said it wants the factory to be in the center of the country and closer to East Coast markets.

The stakes are high for state and local governments, which covet auto factories because they have a lot of workers and normally pay well, generating income and property taxes.

Tesla’s current U.S. vehicle assembly factory is in Fremont, California, which employs 10,000 workers. The company has a second U.S. factory in Reno, where it builds batteries for its vehicles and employs about 6,500 people. It also has a factory in Shanghai and another one under construction in Germany.

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Companies typically use proposals from finalists to bargain for the best package of tax breaks, site investments and other incentives.

The new factory would build Tesla’s upcoming “Cybertruck” as well as be a second site to build the Model Y small SUV.

On the company’s earnings conference call in April, Musk said the site of the company’s third U.S. factory could be announced within a month. Musk calls his plants “Gigafactories.”

The respective mayors, Steve Adler of Austin and G.T. Bynum of Tulsa, as well as Oklahoma Gov. Kevin Stitt, all declined comment on whether their cities are finalists for the plant. However, all reasserted their respective locales would be best suited for the plant site. Texas Gov. Greg Abbott did not immediately respond to requests for comment.

Developing now. Details to follow.

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