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posted by cmn32480 on Monday May 18 2020, @06:17PM   Printer-friendly
from the commencing-site-bidding-war dept.

Report: Tesla plans to build a new car factory in Texas:

Elon Musk's recent clashes with officials in Alameda County, home of Tesla's Fremont factory, may have given him a heightened sense of urgency to find Tesla's next US factory. On Friday, several news outlets reported that Tesla was narrowing in on a new location to build the Model Y crossover and Tesla's forthcoming Cybertruck.

The reports started with Electrek, a pro-Tesla site whose co-founder Fred Lambert has good connections inside the company. Just before 3pm Eastern time, Lambert reported that Tesla had settled on Austin, Texas as the site of its next factory.

"We are told that the decision for the site is not set in stone since Tesla was apparently given a few options in the greater Austin area," Lambert wrote. "But Musk is said to want to start construction extremely soon and aims to have Model Y vehicles coming out of the plant by the end of the year."

That would be a remarkably short amount of time for any car company to build a new factory from scratch. Last year, it took Tesla almost a year to build its Shanghai factory—and that was considered unusually fast.

[...] Hours after Electrek's story ran, three news organizations—TechCrunch, CNBC, and the Associated Press—all published stories stating that Tesla was still considering Tulsa, Oklahoma.

"A final decision has not been made, but Austin and Tulsa are among the finalists," Techcrunch's Kirsten Korosec writes, citing "multiple sources."

[...] Both Texas and Oklahoma have right-to-work laws that allow employees to opt out of paying union dues. These laws could help Tesla discourage workers in its new factory from forming a union. California's laws are more friendly to union organizing.

Elon Musk SpaceX already has two locations in Texas: The Boca Chica site is rapidly ramping up development of Starship and the McGregor location has their rocket testing facility.

Recently:
(2020-05-14) Elon Musk's Boring Company Finishes Digging Las Vegas Tunnels
(2020-05-12) Musk Dares County Officials to Arrest Him as He Reopens Fremont Factory
(2020-05-02) Elon Musk Tweet Wipes $14bn Off Tesla's Value
(2020-04-15) Tesla's Robotaxi Fleet Will be 'Functionally Ready' in 2020, Musk Says
(2020-04-04) Tesla Beats Expectations with Strong First-Quarter Delivery Numbers


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  • (Score: -1, Troll) by Anonymous Coward on Tuesday May 19 2020, @02:19AM

    by Anonymous Coward on Tuesday May 19 2020, @02:19AM (#996132)

    It is probably a bit unrealistic but totally doable. Where I live there were hundreds of factories churning out cloths. Those no longer exist. The empty husks of buildings are there. The people and *large* machinery is long gone. They took the machinery and packed it up and moved it to Mexico years ago. Moving a factory is hard. But if you are already shutdown what does it mater if you move a non running factory somewhere else to get it running again?

    As a businessman I would be looking to do something similar to what he is doing. Basically he sees currently the California government as a risk to running his business. He is diversifying it. He can also use the two states against each other in a bidding war for tax breaks and concessions. Look for him to announce more states soon (within 3 years).

    Your very reason for him not moving it is a very good reason for him to split the company into smaller pieces AND move. The risk of the gov screwing up his business is large there. He found out first hand. Cali is no longer a stable place to make a new large business. The Californians just have not figured it out yet. Musk did.

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