Tesla is looking for locations for the new Cybertruck Gigafactory, with Texas currently leading the way.
Lone Star State lawmakers have just approved at least $ 14 million in property tax relief for the next 10 years when Tesla selects a location near Austin-Bergstrom International Airport in Travis County.
Under the deal, the electric car company would have to invest more than $ 1.1 billion in the factory, which is expected to create around 5,000 jobs.
Tuesday's offer follows tax breaks of $ 46.6 million approved by the Del Valle School District Board in early July. This brings the tax breaks to over $ 60 million.
Four out of five Travis County officials approved the incentive agreement in a Tuesday vote, according to Statesman local news broadcaster. Commissioner Jeff Travillion, whose district covers the location where the factory could be built, made it clear what this would mean for the local community: “We are talking about a transformation project that deals with poverty and opportunities in this area for generations becomes."
While many locals support the idea of Tesla coming to Austin, Statesman noted that other concerns about the company's corporate health and safety record and industrial relations have asked for assurances regarding payment and employee conditions if the factory is located in the USA should be built state.
Tesla, led by billionaire entrepreneur Elon Musk, currently has only one vehicle factory in the United States – in California. The company plans to build its futuristic-looking cyber truck in a new facility later this year or early next year.
Musk said in March 2020 that Tesla was looking for a location in the "central United States". The company has had talks with officials in Nashville, Tennessee, although Tesla later said the discussions ended without an agreement. Tulsa, Oklahoma, is also in the running to house the factory, but Austin is clearly in a strong position at this point as Tesla continues to consider its options.
Digital Trends asked the company to comment on the latest developments. We will update this article as soon as we get an answer.