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The ‘Tesla Effect’ hits Texas as Giga Austin starts transforming Travis County
For decades, the Del Valle area, an underdeveloped section of southeastern Travis County, saw minimal commercial investment. The area was poised for growth, but the arrival of companies that would provide work for the area’s residents was very deliberate. That is, at least, until Tesla announced that it will be building its Gigafactory Texas facility in the area.
Tesla is investing at least $1 billion in its new factory, and it intends to employ 5,000 workers in manufacturing jobs. It did not take long before the expansive 2,000-acre lot — which Elon Musk has stated will be developed into an “ecological paradise” — turned into a sign of growth and progress for Del Valle. With work at the site now “moving at the speed of Elon” as per a developer, Giga Texas could very well become the trigger for change in the oft-neglected section of Travis County.
In a statement to the Austin American-Statesman, Travis County Commissioner Jeff Travillion noted that the Del Valle area has been ready for a transformation for some time now. Del Valle’s residents are nearly twice as likely to be African-American compared to Travis County as a whole, and its concentration of Latino families is also above average for the US. This unfortunately meant that household incomes in the area lag in comparison to other areas of the county.
Within the Del Valle Independent School District’s boundaries alone, the average median income stands at just $20,000 per year, less than Travis County at large. This could change with Tesla’s arrival. “I hope we can build sustainability while we are building the economic infrastructure for that area. I’m optimistic. It can lead this community to a thriving future, but we cannot forget our most vulnerable populations,” he said.
Executives from the electric car maker have noted that about 65% of the estimated 5,000 jobs it will be offering will involve unskilled labor that does not require a college degree. The company has further noted that the average annual salary for workers at the plant will be $47,147, while the median salary would be $68,303. With this, Giga Texas would likely become an attractive place of work for many of the county’s residents.
The “Tesla Effect” that’s expanding into Del Valle will not only be felt by the area’s job market. With the company’s vertical integration, Gigafactory Texas could herald the arrival of other companies that are partnered with the electric car maker as well. Such a thing happened in 2003 in San Antonio, Texas, when Toyota decided to build its trucks in the city. Toyota opted to have tier-one suppliers onsite, which, in turn, resulted in suppliers establishing their own presence in San Antonio. About 4,000 more jobs were brought about by this strategy.
The Del Valle school system stands to benefit from Gigafactory Texas as well. In a statement, Del Valle school board president Rebecca Birch stated that having a major Tesla facility around could open up numerous opportunities for students. Giga Texas, for example, could create a large number of internships and mentorship programs that students could take advantage of.
“We’re excited about the opportunity and can’t wait to see what this means for our kids. We made sure that we put students first and we hope this means everything we dream it will,” she said.
Gigafactory Texas will likely be Tesla’s most impressive facility yet. With such an expansive area, the electric car maker could expand its operations significantly, perhaps even pursuing some of its own battery production efforts. It also stands to be the first of Tesla’s facilities that would actually be partially open to the public, with sections such as a boardwalk and a hiking/biking trail being accessible for everyone.
Elon Musk
xAI’s Grok approved for Pentagon classified systems: report
Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations.
Elon Musk’s xAI has signed an agreement with the United States Department of Defense (DoD) to allow Grok to be used in classified military systems.
Previously, Anthropic’s Claude had been the only AI system approved for the most sensitive military work, but a dispute over usage safeguards has reportedly prompted the Pentagon to broaden its options, as noted in a report from Axios.
Under the agreement, Grok can be deployed in systems handling classified intelligence analysis, weapons development, and battlefield operations.
The publication reported that xAI agreed to the Pentagon’s requirement that its technology be usable for “all lawful purposes,” a standard Anthropic has reportedly resisted due to alleged ethical restrictions tied to mass surveillance and autonomous weapons use.
Defense Secretary Pete Hegseth is scheduled to meet with Anthropic CEO Dario Amodei in what sources expect to be a tense meeting, with the publication hinting that the Pentagon could designate Anthropic a “supply chain risk” if the company does not lift its safeguards.
Axios stated that replacing Claude fully might be technically challenging even if xAI or other alternative AI systems take its place. That being said, other AI systems are already in use by the DoD.
Grok already operates in the Pentagon’s unclassified systems alongside Google’s Gemini and OpenAI’s ChatGPT. Google is reportedly close to an agreement that will result in Gemini being used for classified use, while OpenAI’s progress toward classified deployment is described as slower but still feasible.
The publication noted that the Pentagon continues talks with several AI companies as it prepares for potential changes in classified AI sourcing.
Elon Musk
Elon Musk denies Starlink’s price cuts are due to Amazon Kuiper
“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X.
Elon Musk has pushed back on claims that Starlink’s recent price reductions are tied to Amazon’s Kuiper project.
In a post on X, Musk responded directly to a report suggesting that Starlink was cutting prices and offering free hardware to partners ahead of a planned IPO and increased competition from Kuiper.
“This has nothing to do with Kuiper, we’re just trying to make Starlink more affordable to a broader audience,” Musk wrote in a post on X. “The lower the cost, the more Starlink can be used by people who don’t have much money, especially in the developing world.”
The speculation originated from a post summarizing a report from The Information, which ran with the headline “SpaceX’s Starlink Makes Land Grab as Amazon Threat Looms.” The report stated that SpaceX is aggressively cutting prices and giving free hardware to distribution partners, which was interpreted as a reaction to Amazon’s Kuiper’s upcoming rollout and possible IPO.
In a way, Musk’s comments could be quite accurate considering Starlink’s current scale. The constellation currently has more than 9,700 satellites in operation today, making it by far the largest satellite broadband network in operation. It has also managed to grow its user base to 10 million active customers across more than 150 countries worldwide.
Amazon’s Kuiper, by comparison, has launched approximately 211 satellites to date, as per data from SatelliteMap.Space, some of which were launched by SpaceX’s Falcon 9 rocket. Starlink surpassed that number in early January 2020, during the early buildout of its first-generation network.
Lower pricing also aligns with Starlink’s broader expansion strategy. SpaceX continues to deploy satellites at a rapid pace using Falcon 9, and future launches aboard Starship are expected to significantly accelerate the constellation’s growth. A larger network improves capacity and global coverage, which can support a broader customer base.
In that context, price reductions can be viewed as a way to match expanding supply with growing demand. Musk’s companies have historically used aggressive pricing strategies to drive adoption at scale, particularly when vertical integration allows costs to decline over time.
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Tesla Giga Berlin makes a statement of solidarity amid IG Metall conflict
The display comes as tensions between Tesla and IG Metall continue to escalate.
Tesla Giga Berlin is sending a strong message of solidarity amid its ongoing legal dispute with German union IG Metall.
In a post on social media platform X, Giga Berlin plant manager André Thierig shared an image of the facility’s lobby covered with a large banner that reads: “Progress. Innovation. Success.” He added that the slogan reflects what the facility has stood for since Day One.
“Our lobby at Giga Berlin covered in a huge banner these days. Progress. Innovation. Success – this is what we stand for since we started production in 2022 and how we will go into our future!” Thierig wrote in his post on X.
The display comes as tensions between Tesla and IG Metall continue to escalate.
The dispute began after Tesla accused a union representative of secretly recording a works council meeting at Giga Berlin. Tesla stated that it filed a criminal complaint after the alleged incident. Police later confirmed they had seized a computer belonging to an IG Metall member as part of their investigation.
“What has happened today at Giga Berlin is truly beyond words! An external union representative from IG Metall attended a works council meeting. For unknown reasons he recorded the internal meeting and was caught in action! We obviously called police and filed a criminal complaint!” Thierig wrote on X at the time.
IG Metall denied the accusation and characterized Tesla’s move as an election tactic ahead of upcoming works council elections. The union subsequently filed a defamation complaint against Thierig. Authorities later confirmed that an investigation had been opened in connection with the matter.
Giga Berlin began production in 2022 and has since become one of Tesla’s key European manufacturing hubs, producing the Model Y, the company’s best-selling vehicle. The facility has expanded capacity over the past years despite environmental protests, labor disputes, and regulatory scrutiny.
xAI’s Grok approved for Pentagon classified systems: report
Elon Musk denies Starlink’s price cuts are due to Amazon Kuiper
