Austin area may offer $68 million in tax breaks for potential Tesla plant
Austin competing with Tulsa for site of Cybertruck factory
Published: June 18, 2020 By Associated Press
Tesla has not said when it will announce its decision. BLOOMBERG NEWS
AUSTIN, Texas — An Austin-area school district is considering offering more than $60 million in tax incentives to attract a proposed Tesla “gigafactory” to Central Texas, Tesla TSLA, -0.60% revealed Thursday.
The Del Valle Independent School District proposal was made public in a Tesla tax application filed Thursday with the Texas comptroller’s office. The proposal would offer Tesla $68 million in property tax breaks over 10 years to put its new plant on a 2,100-acre site off Texas 130 just north of the Colorado River on the southeastern outskirts of Austin. Travis County commissioners are considering a separate tax incentive package.
The comptroller’s documents state the real value of the property would average about $600 million per year. Without the Del Valle district incentives package, Tesla would have to pay almost $8 million in property taxes per year.
Austin is competing with Tulsa, Okla., to become the city that hosts the plant that builds the Cybertruck, Tesla’s planned electric pickup truck, and the Tesla Model Y sport utility vehicle. In its application with the Texas comptroller’s officer, Tesla says it is considering the Travis County site and a site or sites in Oklahoma.
The proposed plant would have 4 million to 5 million square feet of space and would be Tesla’s biggest so far. Tesla’s U.S. vehicle assembly factory in Fremont, California, employs 10,000 workers.
In its Thursday filing, Tesla said that if the Del Valle school board approves the incentive package and it proceeds with building on the Travis County site, construction could start in the third quarter of this year and take two to three years to complete.
Tesla has not said when it will announce its decision.
Tesla Asks Texas For Tax Incentives As It Proposes To Start Construction For New Factory By Q3
Neer Varshney , Benzinga Staff Writer June 19, 2020
Tesla Inc. TSLA 0.53% filed an application with an Austin-area school district in Travis County, Texas earlier this month asking for tax incentives to build a new factory, Bloomberg reported Thursday.
What Happened
The automaker said in the application, it has zeroed in on a 2,100 acres site, currently owned by Martin Marietta Materials Inc. Tesla is asking for significant tax incentives for the Texas facility to remain competitive with another site the Palo Alto-based company is considering in Tulsa, Oklahoma. If it goes ahead with the plan to build the factory at the site, Tesla expects to begin construction by the third fiscal quarter this year, investing about $1 billion at the 4 to 5 million square foot assembly facility. The automaker said in the filing that the factory would create 5,000 new jobs.
Why It Matters
Chief Executive Officer Elon Musk in March announced that Tesla was scouting for locations to build a new manufacturing facility for its recently-launched Cybertruck.
Tesla has an option to purchase this land, but has not exercised it
— Elon Musk (@elonmusk) June 18, 2020
Musk said on Thursday the company hasn't yet purchased the Texas land, and Tesla is "considering several options."
Price Action
Tesla shares closed 1.2% higher at $1,003.96 on Thursday. The shares added another 0.8% in the after-hours session at $1,011.99.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Tesla has not said when it will announce its decision. BLOOMBERG NEWS
AUSTIN, Texas — An Austin-area school district is considering offering more than $60 million in tax incentives to attract a proposed Tesla “gigafactory” to Central Texas, Tesla TSLA, -0.60% revealed Thursday.
The Del Valle Independent School District proposal was made public in a Tesla tax application filed Thursday with the Texas comptroller’s office. The proposal would offer Tesla $68 million in property tax breaks over 10 years to put its new plant on a 2,100-acre site off Texas 130 just north of the Colorado River on the southeastern outskirts of Austin. Travis County commissioners are considering a separate tax incentive package.
The comptroller’s documents state the real value of the property would average about $600 million per year. Without the Del Valle district incentives package, Tesla would have to pay almost $8 million in property taxes per year.
Austin is competing with Tulsa, Okla., to become the city that hosts the plant that builds the Cybertruck, Tesla’s planned electric pickup truck, and the Tesla Model Y sport utility vehicle. In its application with the Texas comptroller’s officer, Tesla says it is considering the Travis County site and a site or sites in Oklahoma.
The proposed plant would have 4 million to 5 million square feet of space and would be Tesla’s biggest so far. Tesla’s U.S. vehicle assembly factory in Fremont, California, employs 10,000 workers.
In its Thursday filing, Tesla said that if the Del Valle school board approves the incentive package and it proceeds with building on the Travis County site, construction could start in the third quarter of this year and take two to three years to complete.
Tesla has not said when it will announce its decision.
Tesla Asks Texas For Tax Incentives As It Proposes To Start Construction For New Factory By Q3
Neer Varshney , Benzinga Staff Writer June 19, 2020
Tesla Inc. TSLA 0.53% filed an application with an Austin-area school district in Travis County, Texas earlier this month asking for tax incentives to build a new factory, Bloomberg reported Thursday.
What Happened
The automaker said in the application, it has zeroed in on a 2,100 acres site, currently owned by Martin Marietta Materials Inc. Tesla is asking for significant tax incentives for the Texas facility to remain competitive with another site the Palo Alto-based company is considering in Tulsa, Oklahoma. If it goes ahead with the plan to build the factory at the site, Tesla expects to begin construction by the third fiscal quarter this year, investing about $1 billion at the 4 to 5 million square foot assembly facility. The automaker said in the filing that the factory would create 5,000 new jobs.
Why It Matters
Chief Executive Officer Elon Musk in March announced that Tesla was scouting for locations to build a new manufacturing facility for its recently-launched Cybertruck.
Tesla has an option to purchase this land, but has not exercised it
— Elon Musk (@elonmusk) June 18, 2020
Musk said on Thursday the company hasn't yet purchased the Texas land, and Tesla is "considering several options."
Price Action
Tesla shares closed 1.2% higher at $1,003.96 on Thursday. The shares added another 0.8% in the after-hours session at $1,011.99.
© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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