carandbike logo

Tesla Negotiating Incentives For Possible Texas Vehicle Assembly Plant: Report

If the deal goes through, Tesla's new Gigafactory will manufacture the Cybertruck and Model Y SUV at the facility in Texas, while providing employment to thousands of locals.

Tesla is also reportedly negotiating with officials in Tulsa, Oklahoma expand View Photos
Tesla is also reportedly negotiating with officials in Tulsa, Oklahoma


  • Tesla is negotiating with officials in Texas and Oklahoma for new plant
  • Tesla's only US plant is located in California's Alameda County
  • The Travis County is expected to come to a conclusion this week

Electric carmaker Tesla Inc is negotiating possible incentives with a Texas county that could bring a new auto assembly plant to the area near Austin, the state capital, the Austin American-Statesman reported on Monday. Travis County Commissioners Court is scheduled to discuss terms of the deal on Tuesday, the paper reported, citing people with knowledge of the situation. A vote is expected in the coming weeks.

Also Read: Tesla's China Car Registrations Up 150% Month-On-Month In May

The paper said it was unclear whether negotiations with Travis County show that Tesla has picked the Austin region as the site for the plant, which would build the company's electric pickup truck and Model Y SUV and employ thousands of people, or if the company is also negotiating with officials in Tulsa, Oklahoma.

Tesla officials could not immediately be reached to comment. The company's chief executive, Elon Musk, has tweeted previously about the possibility of bringing a plant to Texas. Oklahoma also has been mentioned as a possible site.


Elon Musk had previously threatened to move his California plant to Texas after the plant could not be opened due to the Coronavirus lockdown

Travis County officials declined to comment, and a spokesman for the Texas governor's office did not immediately comment.

Last month, Texas Governor Greg Abbott said he had spoken with Musk about a potential plant.

Abbott's comments came three days after Musk had threatened to move Tesla's headquarters and future operations to Texas or Nevada after officials in California's Alameda County, where Tesla's only U.S. vehicle assembly plant is located, said the plant could not yet reopen because of coronavirus lockdown measures. The plant has since reopened.

Also Read: Tesla Model Y Deliveries Begin In Canada


Officials with the United Auto Workers union, which represents hourly workers at General Motors Co's assembly plant in Arlington, Texas, said they believe a Tuesday county meeting will include talks about the possible deal. The union, which has unsuccessfully tried organizing Tesla's Fremont, California, plant, called on Texas officials to obtain assurances from Tesla about any potential jobs.

For the latest auto news and reviews, follow on Twitter, Facebook, and subscribe to our YouTube channel.

You might be interested in

New Car Models

Be the first one to comment
Thanks for the comments.