Local Texas officials approved nearly $65 million in tax subsidies for Tesla to build its Cybertruck factory near Austin — but there’s still no word on Elon Musk’s decision

Elon Musk

  • Officials in Travis County, Texas — which includes Austin — approved $14.7 million worth of tax rebates for a potential Tesla factory on Tuesday.
  • The county deal would be on top of $50 million from a local school district, totalling nearly $65 million.
  • There’s no word yet on which city Tesla may choose, and Tulsa, Oklahoma has also been competing for the potential Cybertruck factory.

A central Texas county that includes Austin on Tuesday approved a plan to provide millions in tax subsidies to Tesla if it builds a $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 Model Y sport utility vehicles and Cybertrucks.

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

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

Tesla did not immediately respond to a request for comment.

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 favor 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% rebate on its property taxes for 10 years, worth $14.7 million, as well as a 65% 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 $47,000, an income considered low by the county’s health and human services division.

(Reporting by Joe White and Tina Bellon; Additional reporting by Hyunjoo Jin; Editing by Richard Pullin and Stephen Coates)