Tesla to start building new U.S. vehicle factory this summer

In a document that has been made public this week, Elon Musk, Tesla Inc’s CEO said, he wants to start building a large vehicle assembly plant in the southwestern U.S. as early as the third quarter of this year.

Tesla is yet to decide whether it will select Texas or Oklahoma and has pitted the two against each other to secure tax breaks, show the documents. The plant would make Tesla’s electric pickup truck as well as its Model Y SUV.

Tesla told officials in Travis County, Texas, that the automaker wants to invest around $1 billion to build a 4 million to 5 million square foot vehicle assembly plant which will employ 5,000 people. It will need tax breaks in order to make the site competitive with an alternative location being in Oklahoma.

“We’ve pulled together a compelling, well-balanced and, more importantly, a responsible performance-based incentives package to attract Tesla to Oklahoma,” said Oklahoma’s Secretary of Commerce Sean Kouplen in a statement.

Tesla’s vehicle assembly plant in Fremont, California, covering 5.3 million square feet is not large enough for the growing company, as a result Tesla has had to build cars under a tent adjacent to the plant.

Categories: Creativity, Economy & Finance, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy

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