You are here

Tesla secures tax breaks for cybertruck factory in Texas

rk_tesla_150720.jpg
A central Texas county that includes Austin on Tuesday approved a plan to provide millions in tax subsidies to Tesla Inc if it builds a US$1.1 billion vehicle factory in the area.

[BENGALURU] A central Texas county that includes Austin on Tuesday approved a plan to provide millions in tax subsidies to Tesla Inc if it builds a US$1.1 billion vehicle factory in the area.

The decision marks a step forward for Texas as it vies with Oklahoma to attract a new factory to build Tesla's Y sport utility vehicles and cybertrucks.

A majority of commissioners in Travis County voted in favour of providing the electric carmaker with a tax rebate worth at least US$14.7 million.

That brings the total amount of tax rebates to nearly US$65 million after the Del Valle school district, which includes the proposed factory site, approved a US$50 million incentive on Thursday.

Tesla did not immediately respond to a request for comment.

Your feedback is important to us

Tell us what you think. Email us at btuserfeedback@sph.com.sg

The electric carmaker only has a single vehicle manufacturing plant in California and has said it wants to start building a large second plant in the southwestern United States as early as the third quarter of this year..

Commissioners in favour of the agreement decided to move forward after a Tesla representative said executives had met with the governor of a rival state, without naming the state.

The city of Tulsa in Oklahoma has campaigned for Tesla to build the plant there.

Tesla has asked Travis County for an 80 per cent rebate on its property taxes for 10 years, worth US$14.7 million, as well as a 65 per cent rebate for the next 10 years after that.

Tesla said the factory would create 5,000 jobs, mostly low-skilled. The average annual salary would be roughly US$47,000, an income considered low by the county's health and human services division. 

REUTERS

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes