Tesla’s new car plant to be built in Texas to produce electric pickups

June 19 (UPI) — U.S. electric car maker Tesla is preparing to build its second U.S. auto plant, the first electric pickup truck, in a region southeast of Austin, Texas, according tomedia reports. Tesla has filed an application with the Austin School District, where Travis County is located, for tax breaks, the documents show.

Elon Musk, Tesla’s chief executive, announced in March that the company had begun looking for a new plant site, mainly for the model Y, which was delivered to customers on the East Coast of the United States, and the Cybertruck electric pickup, which was still under development.

Tesla's new car plant to be built in Texas to produce electric pickups

“Tesla is evaluating the possibility of developing, designing and building an electric vehicle manufacturing plant in Travis County,” the company said in the filing. The site tesla is currently considering is a ready-made concrete facility owned by Martin Marietta Materials, which covers 850 hectares.

Construction is scheduled to begin in the third quarter of this year and has not yet received all the required approvals. According to the document, Oklahoma is still actively courting Tesla to build a local plant. Musk said on Twitter Thursday that Tesla has not yet started buying land in Texas.

Tesla plans to build a plant with a total area of about 370,000 to 460,000 square meters, which will eventually employ 5,000 workers, making it the world’s fourth auto assembly plant. In the wake of the global financial crisis in 2008, Tesla bought its first plant in Fremont, California, for just $42m from Toyota Motor Corp. Earlier this year, Tesla’s Shanghai Super Project began delivering the Model 3 electric sedan, while the superplant on the outskirts of Berlin, Germany, is scheduled to start production next year.

“Critical” tax breaks

Tesla said eight states were initially listed as candidates for the company’s plant, and the company received incentives from the states, but gave no details. Since then, the company has narrowed its search and said the ability to secure tax breaks will have a significant impact on its location decisions.

“This is particularly important in Texas, where real estate and personal property taxes are relatively high compared to other states,” the company said. “

Oklahoma’s Commerce Secretary Sean Kouplen said Thursday that the city of Tulsa remains a candidate for the plant’s location and that the state has launched a “responsible performance incentive program” to attract Tesla.

“We believe that Oklahoma will be the right choice for Tesla,” Coperen said in a statement. “We’re in the heartofland, we’re a pro-business state, and the labor tax incentives we offer to automotive engineers will benefit both Tesla and the engineers they recruit, and our amazing quality of life is a huge advantage.” “

Controversial procedures

Tesla’s proposed deal with the Texas school district relies on a state tax plan that allows school districts to offer preferential treatment for economic development projects, which are then compensated by the state government.

Nate Jensen, a policy professor at the University of Texas at Austin, said in a telephone interview that the plan “has been controversial.” “There are a lot of scandals about how to motivate companies that come anyway. “

In November, Tesla unveiled a prototype of its Cybertruck electric pickup, which Musk said was a far cry from the main pickups of Ford, General Motors and Fiat Chrysler Automobiles. Tesla’s propaganda car was fitted with shatter-proof glass, but the live demonstration failed. The video went viral and caused a huge stir.

Master plan

Musk’s announcement that Tesla will build a new plant has sparked competition in cities and states across the United States, where they want Tesla to build it locally. The move is reminiscent of Tesla’s announcement in 2014 of plans to build a large battery plant, which eventually chose Nevada, which offered Tesla a $1.3 billion reward.

During this year’s outbreak, a California county blocked the reopening of Tesla’s Plant in Fremont, and Musk threatened to move tesla headquarters and future projects to Texas or Nevada. Prior to that, the site of the Cybertruck electric pickup plant had begun. Musk then resumed production despite opposition from county health officials at the Fremont plant.

The proposed Cybertruck electric pickup plant will fulfil Musk’s long-held ambitions. In 2016, Musk said Tesla’s product line would eventually “cover major land vehicles,” including pickup trucks. (Chen Chen)