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Tesla picks Austin for its next US factory to build Cybertruck, Semi truck, Model Y:
Tesla has picked a site near Austin for its next U.S. factory, a 4- to 5-million square foot $1.1 billion plant that will assemble the automaker's futuristic Cybertruck, the Tesla Semi and the Model Y and Model 3 for sales to customers on the East Coast.
[...] Tesla CEO Elon Musk described the future factory as an "ecological paradise," with a boardwalk and bike lanes and where the public will be welcome. While tours have been offered at Tesla's Fremont, Calif., the campus is not open for the public to wander its grounds.
[...] Tesla has promised Texas officials it will employ at least 5,000 people. About 25 of those workers are categorized as "qualifying" jobs and would be paid a minimum of $74,050, while the remaining would be middle income jobs with an annual salary of $47,147.
[...] Under terms of the agreement with Travis County, Tesla must invest $1.1 billion in the new factory within the first five years. In exchange, Travis County will rebate 70% of the property taxes Tesla will pay. Once Tesla's investment in the factory eclipses that $1.1 billion mark, the property taxes rebates will increase to 75%. Any investments in the factory beyond $2 billion, will give Tesla 80% in property tax rebates.
[...] If Tesla fails to hit the investment goal or if its falls 75% short of its jobs requirement in any year, the company won't receive any property tax relief. The county will also have the ability to recoup tax rebates if Tesla breaches its contract.
Together, Tesla will receive at least $61 million in property tax abatement. It's possible that Tesla could receive more from the state.
(Score: 3, Interesting) by Phoenix666 on Friday July 24 2020, @02:57PM (1 child)
Large companies like Tesla bring a lot of positive externalities to a city, so it makes economic sense for municipalities to entice them. Tesla, in particular, is a unicorn in America these days, a manufacturing company that is growing and making money and which enjoys cachet. Austin, for its part, probably feels a keen need at the moment to diversify its economy away from total dependence on SXSW, suppressed because of concerns about the Chinese virus.
You are quite correct that economic policy and incentives are skewed. Heaping benefits on large players does not help startups and entrepreneurs innovate and develop a dynamic company. That hurts everyone and has produced a sort of neo-feudalism.
Washington DC delenda est.
(Score: 0) by Anonymous Coward on Friday July 24 2020, @10:14PM
Do they? How is this any different from having Amazon? Sure, there's cachet, but they do their best to suck the locality dry at every turn.