Tesla is pouring more than $ 1 billion into its new one Gigafactory in Texas which is expected to be completed by the end of this year.
Construction applications to the Texas Department of Licensing and Regulation showed that the electric car company would spend $ 493 million for the General Assembly section and $ 182 million for the body shop. The construction of the facilities for these sections, together with the facilities for paint, casting and stamping, will be completed by 31 December, according to the documents. The five facilities cost a total of $ 1.06 billion.
The company is expected to receive nearly $ 65 million in local tax rebates for the plant and the project is expected to create 10,000 jobs, according to Reuters.
The factory in Texas comes as Tesla – like many other companies in the technology sector, including technology giants Oracle and Hewlett Packard Enterprise – will move its headquarters from the San Francisco Bay Area to Texas.
“Gigafactory Texas is progressing as planned,” Tesla said a shareholder slide deck last month. “We are putting equipment into operation and manufacturing our first pre-production vehicles.”
Tesla also has factories in California, Nevada and Shanghai and is building a factory near Berlin, Germany.
Gigafactory’s completion follows Tesla founder Elon Musk’s move to Austin. Musk announced that he had left California by December 2020, after several months of fighting with the state over the policy of the coronavirus, but many speculated that Texas’ lack of state income tax played a major role in his decision.