Tesla $1.1 Billion Texas Factory To Sit On $97 Million Piece Of Land

Investing, News, Real Estate, Stock Market, Trader Talk
Business Credit Cards

Tesla Inc. (NASDAQ:TSLA) paid as much as $97 million for the 2,000 acres in Austin, Texas, poised to be home for its next gigafactory. According to a warranty deed filed in Travis County, the giant electric car company paid the money to TXI Operations, the seller who has ties to Martine Marietta, a construction material company based in North Carolina.

Tesla Texas Gigafactory

In its second-quarter earnings call, Martine Marietta indicated that it had sold a property in Austin, Texas, for close to $100 million. However, the construction company did not indicate that the sale went to Tesla.

The site, off State Highway 130, will be home to the proposed $1.1 billion factory that will be up to 5 million square feet. Upon completion, the factory will be a boon to the local economy as it is expected to employ 5,000 workers. The 2,000-acre land is the largest property to date expected to offer excellent expansion potential for the electric giant.

The property on which the gigafactory will sit on was to host as many as 12,000 residential units. As much as 2.25 million square feet was to act as commercial space. Given the benefits that a gigafactory is poised to bring, underscores why the City Council approves the proposed electric car company factory.

The immediate indication is that the factory will be up and running at the start of the fourth quarter of 2021. Several contractors are believed to be in the running for the construction of the gigafactory, with Tesla also looking to hire a number of people for the massive plant.

In its career website, Tesla has posted 24 job openings related to the Gigafactory in Texas. Some of the jobs up for grabs include construction safety manager, structural designer, and civil engineer. Work on the new property has already begun, the car company has affirmed that Texas is the home of its next gigafactory.

Texas has already awarded the car company up to $60 million in tax breaks and rebates over the next ten years. The tax breaks and rebates could come into play on the company meeting set out job creation and investment goals.

Tesla Plans

For Tesla, the acquisition is a big coup as it affirms its push to strengthen its credentials in the electric car space. The new factory will be home to Tesla’s ambitious project that revolves around the production of Cybertruck. The factory will also be home to Model 3 and Model Y vehicle and other Semi tractor-trailers.

The Giga factory provides an opportunity for Austin to get its first major car assembly. For the longest time, the city has only played host to automotive parts suppliers. The nearest major car assembly factory is in San Antonio, owned by Toyota Motor Corp (NYSE: TM)

In addition, Tesla would become the latest automaker to produce trucks in Texas, best known for pickups, the likes of General Motors Company (NYSE: GM), and Toyota already have a massive production footprint in the state.

close

Subscribe to our free daily news summary:
Call Put Strike Insights

close

Subscribe to our free daily news summary:
Call Put Strike Insights

Products You May Like

Articles You May Like

StocksForYou Stock: The Ultimate Stock Recommendation Service for High Growth Stocks
Choosing The Best Credit Card for your Spending Habits
Deliveroo Holdings PLC (LON:ROO) IPO Disappoints As Sell-Off Persists
Investors Who Invested In COVID-19 Hit Bonds Rewarded With Huge Returns
Cannabis ETFs Surge On Marijuana Legalization in New York As Bitcoin ETFs continue to Gather Steam
Cryptocurrencies Continue To Perform Well Boosting Revenue For Companies Despite Market Volatility
US Stocks Bounce Back Ahead Of Busy Earning Session And $2 trillion Infrastructure Plan

Leave a Reply

Your email address will not be published. Required fields are marked *