Tesla To Build $1B Automaking Plant In Austin

AUSTIN, TX — It's official: Tesla will build a $1.1 billion auto assembly plant in eastern Travis County, creating 5,000 local jobs, it was announced Wednesday.

After previously securing tax incentives to spur its plans, Tesla will build the plant on 2,100 acres of land off Texas 130 and Harold Green Road. Travis County Commissioners Court and the Del Valle ISD trustees — each representing taxing jurisdictions in the future plant's midst — previously approved tax breaks to further coax Tesla to build locally.

Local officials' financial inducements were largely spurred by the automaker's pledge to create thousands of jobs with average annual salaries of $35,000 — an appealing economic development prize at any time, but more so amid corrosive economic effects of the coronavirus pandemic that has led to economic doldrums. Officials have noted the development also is expected to bring an estimated $1 billion in capital investment to the region, generate millions of dollars in tax revenue for the local and state governments each year and support thousands of new non-Tesla jobs due to its secondary economic effects.

Austin Mayor Steve Adler applauded the development in a prepared statement: "Tesla moving to Austin is exciting. It gives us three things we need in east Austin. It gives us thousands of good wage jobs that don’t need a 4-year degree. Its factory will be better for people and the planet. It’s an important economic boost in east Austin, especially as we fight the economic effects of the virus. This new opportunity will help our city be more fair for everyone who lives here. I look forward to working on and resolving the issues leading to final city approval."

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Gov. Greg Abbott shared similar sentiments: "Tesla is one of the most exciting and innovative companies in the world, and we are proud to welcome its team to the State of Texas," he said in a prepared statement. "Texas has the best workforce in the nation, and we’ve built an economic environment that allows companies like Tesla to innovate and succeed. Tesla’s Gigafactory Texas will keep the Texas economy the strongest in the nation and will create thousands of jobs for hard-working Texans. I look forward to the tremendous benefits that Tesla's investment will bring to Central Texas and to the entire state."

Austin Chamber of Commerce officials also celebrated the development via a prepared statement from Opportunity Austin, its five-county economic development initiative: “Our community has the strong desire to ensure everyone in our region has opportunities to grow, opportunities to achieve success, and opportunities to provide a better future for their children,” Opportunity Austin Chair Gary Farmer said. “Tesla’s decision to locate its newest Gigafactory in Austin will expand and enhance our innovative culture while also providing new and exciting career opportunities for all segments of our Central Texas workforce. The company’s pioneering spirit and advanced manufacturing technologies will be instrumental in our region’s economic recovery and our sustainable growth for the longer term.”

The chamber estimated for every position created at the Gigafactory, an estimated four indirect and induced jobs will be created in the region.

Travis County Judge Sam Biscoe also reacted to the news: “In addition to the 5,000 new jobs and $1 billion facility investment, Travis County has been able to take a tract of land that paid $64,000 in tax revenue over 10 years and turn it into a tract that will pay $8 million in tax revenue during the same period,” he said in a prepared statement. “I am proud of the agreement we have reached. It strikes a balance between incentivizing Tesla, securing significant community benefits, and ensuring protection of workers and the environment.”

Del Valle ISD Board of Trustees President Rebecca Birch noted the educational initiatives Tesla has promised in gaining the school district's endorsement in the form of tax breaks. As part of its plan to locate the new facility in the Austin region, Tesla officials committed to invest in the community through workforce initiatives, technical colleges, and programs for K-12 schools, according to a Tesla filing previously submitted to state regulators.

"We are excited to welcome our new neighbors Tesla into the DVISD community," Birch said. "From the start, their support, generosity, and commitment to our students has been unwavering. Based on the overwhelmingly positive feedback at both of our public board meetings, this sentiment is shared not only with our board and superintendent, but our community at large. As demonstrated in other locations, Tesla can make a big impact on student learning. We are looking forward to developing multiple pathways to enrich our students’ and community’s lives with programming and employment opportunities. We are confident that Tesla will be 'DV Proud' partnering with us on the journey of preparing students for a successful future."

Dr. Richard Rhodes, Austin Community College District President/CEO, also invoked the potential of those educational opportunities coming with the plant's development.

“Austin Community College is the region’s largest provider of skilled technical education, and Tesla is one of the world’s most advanced manufacturers," Rhodes observed. "We share a common vision for innovative collaboration. Tesla stands to bring thousands of new jobs to our region, and ACC stands ready to support this work and ensure that Austin-area residents are equipped with the skills they need to be successful. Together, we can continue to build and transform the manufacturing industry in Central Texas.”

Austin Community College District officials place a premium on such partnerships with the private sector, Rhodes suggested: "Austin Community College District believes deeply in building partnerships that lift our community. When business and education come together, we build connections that create pathways for opportunity. ACC is excited to welcome Tesla to this important work.”

The college district has a robust multiple training programs and career tracks in manufacturing with career certificates and associate degrees that lead to jobs in semiconductor, electronics, medical device, and other manufacturing sectors. Learn more about the college’s manufacturing program.

Workers Defense Action Fund officials offered qualified endorsement, touting the eventual job creation while asking for transparency and safe working conditions.

"We support bringing new jobs to our community, but we need a guarantee that they will be good, safe jobs," Emily Timm, the group's co-executive director, said in a prepared statement. "As it stands, there is no way to verify that Tesla will implement any of the agreed upon safety and wage standards because the agreement doesn’t provide for independent, third-party monitoring or enforcement measures. Tesla is notorious for skirting workplace protections and putting their workers at risk, and we cannot expect them to police themselves."

Workers Defense Action Fund is a statewide organization dedicated to empowering low-wage workers and immigrants across Texas to pass policies and support candidates that address injustices in their communities.