Tesla is negotiating terms of a possible incentives deal with Travis County that could bring the electric car maker’s next U.S. assembly plant — and thousands of jobs — to Austin, the American-Statesman has learned.
The Travis County Commissioners Court is scheduled to discuss the potential incentives deal in an executive session on Tuesday, according to people with knowledge of the proceedings. A vote is expected in the coming weeks.
Terms of the potential incentives deal have not been disclosed. Commissioners Court members did not respond Monday to messages seeking comment. County spokesman Hector Nieto said the county had no comment.
Messages left seeking comment from Tesla and Texas Gov. Greg Abbott’s office also were not returned Monday.
It was unclear Monday whether the negotiations with Travis County signal that Tesla has settled on Austin, or if the company is also continuing to negotiate with Tulsa on possible incentives.
Item 21 on Tuesday’s Commissioners Court agenda calls for the members to “consider and take appropriate action on a project under Travis County Code Chapter 28.” It gives no additional detail, but Chapter 28 of the Travis County Code contains guidelines for economic development incentives.
The United Auto Workers, a union for employees of automakers, believes “that Item 21 on the agenda is related to Tesla,” Brian Rothenberg, UAW director of public relations, told the Statesman.
The new facility — which Tesla calls a “gigafactory” — would build Tesla’s upcoming Cybertruck electric pickup, as well as be a second site to build the Model Y SUV. It reportedly would be Tesla’s biggest facility, surpassing the company’s vehicle assembly factory in Fremont, Calif., that employs 10,000 people and its battery factory in Reno, Nev., that has 6,500 workers.
Tesla CEO Elon Musk has said the company wants the factory to be in the center of the country and closer to East Coast markets.
Tesla has previously received significant incentives for choosing sites for its assembly plants. In 2014, Nevada agreed to a $1.3 billion incentives deal to lure Tesla’s battery factory to a site near Reno.
The United Auto Workers union on Monday called on Travis County commissioners to carefully review any public subsidies for Tesla.
“So far, it is unknown what actions Travis County Commissioners are contemplating,” UAW spokesman Rothenberg said. “We do know, however, that in July 2019, county staff asked the commissioners to place a moratorium on economic incentives. In May, the commissioners lifted the moratorium for two months and directed staff to prepare a document for the commissioners’ review. Discussion of economic incentives is back on the commissioners’ agenda for tomorrow, but it will be talked about in ‘executive session,’ meaning that the public will continue to have little or no information.”
The UAW said it has sent a letter to the Commissioners Court citing what it said are other states’ lack of return on investment.
“You have to look strongly at the track record of a company and their commitment not just to public dollars, but to the community investment and actual return on jobs created,” said Cindy Estrada, UAW vice president. “Tesla has a track record of collecting public subsidies from several states but not delivering on their promises. That is why it is important this time for Tesla to commit to community assurances for Travis County before getting subsidies.”
Austin economist Angelos Angelou said last month that if Tesla does choose the Austin region for its next factory, it would be “a great win for Texas and Austin.”
“It would bring thousands of good-paying jobs — non-union jobs — at a time when the economy needs new jobs, and it provides for further diversification of our economy,” Angelou said.
Auto manufacturing jobs typically pay about $35 an hour, or $65,000 to $75,000 a year — and that’s at the low end of the range, he said. Engineering, administrative and other jobs associated with the plant could be expected to pay much higher, he said.
Along with bringing thousands of jobs, having Tesla chose Austin would further the area’s reputation as a high-tech hub, Angelou said.
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