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Tesla approved to invest $750,000 into local Texas organizations

Credit: Greggertruck | X

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Tesla has been approved to invest $750,000 in nine local organizations in Texas this year, significantly exceeding its required investments. Although the company is required to give a certain percentage of its taxes as community investments, the figure nearly doubles the required amount from last year, and one official went on to call the automaker’s contributions “really impressive.”

Travis County commissioners approved Tesla for $750,000 in investments to local organizations in 2023, as shared by the automaker in a report this week (via Fox 7 Austin). Tesla is required to invest about 10 percent of operations and maintenance property taxes into organizations near its Gigafactory in Austin, Texas, and in its official headquarters of Del Valle.

When Tesla established its headquarters in Del Valle, which officially opened in 2022 after being announced in 2020, part of the agreement included giving back to the community. Travis County Director of Economic Development Christy Moffett recently explained the agreement upon the commission’s approval of Tesla’s 2023 investment plan.

“Tesla has an obligation to spend an equivalent of at least 10 percent of the operations and maintenance ad valorem property tax owed by the company over the term of the agreement in one or more of the programs identified,” Moffett said.

Tesla’s maintenance and operational taxes amounted to a little more than $2.9 million in 2022, according to Fox 7 Austin, so the 10-percent requirement would equate to $298,000. The $750,000 Tesla has been approved for is more than double the 2022 figure.

“To see what has happened there because of the hard work of a lot of people, it’s really cool to see that,” said Rohan Patel, Tesla’s director of public policy.

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The investments are broken up into increments ranging from as little as $12,000 to over $350,000, and will go toward organizations such as Del Valle school needs, along with multiple social and environmental groups.

“These things demonstrate to youth that there is something on the other side if [they] stay in school,” Travis County Precinct 1 Commissioner Jeff Travillion said.

The nine organizations are as follows, according to Tesla’s report to the county:

Community Partner

 

Funding Amount

 

Program Description
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Ecorise

 

$100,000

 

Student Innovation Fund creating access to career pathways.

 

American Youthworks

 

$30,000

 

New training and production equipment for Manufacturing Program, providing workforce training.
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Colorado River Alliance

 

$25,000

 

River clean-up and environmental education activities.

 

Black Leaders’ Collective

 

$32,000

 

State of Black Education Program to improve career opportunities.
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Austin Area Urban League

 

$75,000

 

Green Jobs Initiative improving training and access to careers in the sustainability sector.

 

Partners for Education Agriculture and Sustainability (PEAS)

 

$100,000

 

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Sustainability/ Environmental programming to six elementary schools (AISD and Manor ISD) and prepare programming for the 4 Del Valle elementary schools.

 

Workforce Solutions Teacher Externships

 

$12,000

 

2023 Summer Educator Externship Program. Tesla led training and teaching opportunities at Giga Texas.

 

Del Valle ISD Staff

 

$376,880
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Creation of 3 new DVISD roles to directly support career opportunities.

 

Del Valle High School P-Tech Equipment

 

TBD

 

Manufacturing and Robotics equipment for classroom training.

 

Among the many programs are the addition of new roles at the Del Valle School District to support career development, and multiple education and training opportunities for students and teachers. The automaker is also expanding a 120-acre area to the west of Giga Texas as a pilot program for ecological restoration.

“The whole goal with this pilot project, which is a fairly large pilot project, is to get a lot of learnings about what works on this site and maybe what doesn’t and continue applying this along our river frontage,” said Logan Grant, Tesla factory engineer.

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The news comes ahead of Tesla’s third-quarter earnings report on Wednesday evening at 5:30 pm ET.

“This is really impressive. I know there’s lots of chatter in the community about Musk and Tesla and all of that, but what you’ve created here is really remarkable,” said Brigid Shea, Travis County Precinct 2 Commissioner.

Tesla partners with Del Valle ISD on student training program for Giga Texas

What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.

Zach is a renewable energy reporter who has been covering electric vehicles since 2020. He grew up in Fremont, California, and he currently lives in Colorado. His work has appeared in the Chicago Tribune, KRON4 San Francisco, FOX31 Denver, InsideEVs, CleanTechnica, and many other publications. When he isn't covering Tesla or other EV companies, you can find him writing and performing music, drinking a good cup of coffee, or hanging out with his cats, Banks and Freddie. Reach out at zach@teslarati.com, find him on X at @zacharyvisconti, or send us tips at tips@teslarati.com.

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Elon Musk

Tesla CEO Elon Musk reminds everyone about Roadster’s true meaning

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Elon Musk addresses the crowd next to the new Tesla Roadster, which Tesla offers in Performance, Thrust and Rocket versions. (Image: Tesla/X)
Elon Musk addresses the crowd next to the new Tesla Roadster, which Tesla offers in Performance, Thrust and Rocket versions. (Image: Tesla/X)

Tesla CEO Elon Musk took to his social media platform X on Sunday to remind everyone that the Roadster’s true meaning is not about company growth or adding dollars to shareholders’ pockets. Sometimes, you just do things because you can.

Following the Roadster’s epic unveiling event last Thursday, skeptics and critics of the company or the project itself came out to say that the vehicle is a pointless project because it is not geared toward growing the company, delivering supreme margins for profitability, nor does it contribute to the big picture of Artificial/Super Intelligence.

But that’s just the thing: Roadster is not meant to be some shareholder dream; it’s meant to be a vehicle that people buy just because it is something awesome, unique, and the first of its kind.

Tesla Roadster: Three configs, one can fly, 0-60 in 0.8 seconds

Musk had to remind those who are skeptical about the Roadster’s importance to the company mission that while it is not a major contributor to Tesla’s long-term goals, it is something that is being built just because it can be:

“Optimus and Cybercab will be the vast majority of Tesla’s value. The only things that will scale to incredible size (K2 and beyond) economically are super intelligence, robots, solar power, and mass to space. And, of course, if you have the first two, the rest will follow. But Roadster is super cool, so we’re doing it anyway.”

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Musk has said on many occasions that Optimus would be the project that would make up the vast majority of Tesla’s value in the coming years.

Robotics will be a major focus of Tesla over the coming years, especially as Musk believes Optimus will enable work to be optional for humans and will enable what he calls “High Universal Income.”

Cybercab will be a passive income opportunity for owners, Musk and Tesla have said for a very long time, as a fleet of self-driving vehicles will operate within a ride-hailing Robotaxi service that won’t require a human driver to be present.

Tesla investors are more than enthusiastic about the company’s future projects, at least from a general consensus perspective. However, it is important to note that the Roadster is a fun and cool project that pushes the boundaries of what people thought was possible for an automobile.

What we saw last week was the first true example of a flying car, and despite the backlash about how it might not contribute to Tesla’s grand ambitions, it’s okay to have fun sometimes, too.

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Investor's Corner

SpaceX’s biggest earnings test yet lands Tuesday, and Tesla shareholders should be watching

SpaceX reports earnings Tuesday as Wall Street watches AI spending, Starlink growth and Tesla merger

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SpaceX reports third quarter results after the market closes Tuesday, with a webcast at 4:30 p.m. ET streamed on X, and Tesla follows a day later. Bloomberg consensus, cited by Pepperstone, calls for revenue of $12.89 billion, adjusted EBITDA of $6.62 billion and adjusted EPS near $0.15. That would be about 65% growth from the second quarter and SpaceX’s first profitable quarter since its IPO. Analysts expect roughly $6.4 billion from AI and $4.9 billion from Starlink, which is projected to reach 14.3 million consumer subscribers. Capital spending is forecast at $19.6 billion, leaving free cash flow near negative $11.6 billion.

The numbers matter because SpaceX has spent months trying to win over a skeptical market. It priced its record IPO at $135, spiked to $225.64, then sank near $105 in early August. Friday’s close of $146.03 sits about 28% below the June high. The Q2 report beat on revenue at $7.8 billion and put Starlink at 12 million subscribers, but $18.4 billion of capex hurt the stock. Since then SpaceX reached orbit on Starship Flight 14 with 26 Starlink V3 satellites, agreed to buy 800 MHz spectrum for about $8 billion as part of its Starlink Mobile push, and signed a fourth compute hosting deal in four months worth roughly $13 billion a year from December. Management is targeting more than 2 gigawatts of compute by year end and a $100 billion annualized revenue run rate. Evercore ISI, which raised its target to $275, said the quarter may be judged more on those targets than the reported figures

All of this sits under the Tesla merger question. Barclays analyst Dan Levy expects an all stock deal in which SpaceX buys Tesla at a premium, using reference values of $2.1 trillion and $1.5 trillion, and said an announcement would need to come by late October or early November to be voted on at Tesla’s December 6 annual meeting. Barclays estimates Musk would hold about 37% of the combined company and 56% of the votes. Musk said in July that combining companies cannot be discussed on an earnings call, but an investor question asking when SpaceX will merge with Tesla is sitting on SpaceX’s Q&A platform, and Teslarati has tracked how the Roadster demo revived the talk.

If a deal happens, Tuesday’s result would effectively set the price Tesla holders would receive. Their shares would convert into SpaceX stock, along with exposure to a company with a heavy investment on AI, while Tesla itself expects 2026 capex above $25 billion. A strong quarter and calmer spending would make that exchange easier to sell. Another round of heavy capex and a falling stock would make it harder.

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SpaceX’s Gwynne Shotwell just made a quiet gesture toward Tesla

SpaceX president Gwynne Shotwell quietly followed Tesla on X, and merger watchers noticed right away.

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SpaceX President and COO Gwynne Shotwell has started following Tesla’s official account on X, a small change that landed in the middle of a very loud merger conversation. Whole Mars Catalog joked about it on Sunday.

A follow is not an announcement, and neither company has said anything about a deal. What gives the moment weight is the timing. Barclays analyst Dan Levy has told clients that an agreement could come before Tesla’s annual meeting, which must be held by December 6, with SpaceX as the buyer in an all stock deal, as we reported after the Roadster unveiling. Wedbush’s Dan Ives has stuck with a 2027 timeline.

Shotwell is the executive most worth watching if the two companies do move closer. When Musk was asked at the All In Summit why Tesla and SpaceX remain separate, Shotwell sat next to him and said SpaceX personnel had already moved into xAI to fill leadership and engineering gaps. The businesses were integrating “faster than I thought,” she said, though “not fully integrated yet.” Her responsibilities have also grown since SpaceX absorbed xAI, and she now oversees operations that include Grok and the company’s AI compute buildout.

The financial links are already there. Tesla’s $2 billion xAI investment turned into a stake of less than one percent in SpaceX, the two share the Terafab chip project in Austin, and Musk exercised his 2018 Tesla options a week after SpaceX began trading, a sequence analysts flagged as giving SpaceX public shares to use in a deal. Musk holds about 20 percent of Tesla and controls 85.1 percent of SpaceX’s voting power, according to our earlier breakdown.

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The next test is close at hand. SpaceX reports its second earnings as a public company on Tuesday after the close, and Tesla follows on Wednesday. Musk told analysts in July that “we can’t talk about combining companies and that kind of thing on an earnings call,” so a direct answer is unlikely from either stage. Tesla shareholders can still submit and vote on questions through the Say portal until 4 p.m. EDT on Monday, and the merger is a recurring theme in the queue.

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