Tesla pitches the economic benefits of its Cybertruck factory to Texas officials

Tesla’s believes its Cybertruck Gigafactory could reverse the consequences that the COVID-19 pandemic wreaked on the economy of Travis County, Texas.

County Officials in Travis County listed a staff presentation from Tesla as one of the events on their agenda during a June 23, 2020 meeting. The County will be considering and taking appropriate action on an application submitted by the electric car maker to build its next U.S.-based production facility in a 2,100-acre lot outside of the City of Austin.

According to the presentation found on the Travis County Government website, Tesla is preparing to pitch its case for a massive incentive package that would assist the company in obtaining the vast land area for its largest production facility to date.

Among Tesla’s presenters are Rohan Patel, the company’s Senior Director, and Valerie Capers Workman, the Vice President of Human Resources.

The presentation indicates that Tesla can take care of the economic downfall that Travis County’s local economy has been hit with since the COVID-19 crisis has ripped through the United States.

After shutdowns of the county’s businesses in early March when officials issued a “Declaration of Disaster” due to the pandemic, those who work in the area have been forced to leave their jobs and file for unemployment. According to Federal Reserve data, unemployment filing rates in the county spiked from 2.2% in April 2019 to 12.4% in April 2020 after the virus had made its impact in the area.

Tesla feels that the presence of its factory would provide substantial economic assistance by supplying “5,000 middle-skill jobs that fit a targeted economic development need,” and would directly contribute $600 million in annual sales activity.

The location of the Gigafactory could also provide more than 4,000 new non-Tesla jobs due to “secondary effects,” the presentation states.

“Tesla could be a source of re-employment for many,” the company said.

Tesla also listed the benefits that the company will provide to the community, which include investing “a minimum of 10% rebate value in local programs,” new uses of renewable energy, like solar panels where applicable, and STEM (Science, Technology, Engineering, Math) education programs.

The facility will¬†primarily focus on building Tesla’s Cybertruck. This all-electric pickup truck caught the eyes of the automotive sector at its unveiling event in late November last year. The facility will also manufacture the Model Y, a crossover that is Tesla’s newest addition to its fleet. The Model Y that are built in the new facility will be delivered to East Coast customers. In contrast, Tesla’s primary production facility in Northern California will take care of the rest of the country.

Last week, it was reported that Tesla had agreed upon a price of just over $5 million for the 2,100-acre property. However, Elon Musk stated the company has been offered the land but has not exercised its right to purchase at the current time. Musk also added that the company was considering several options for its next big factory in the United States.

Tesla pitches the economic benefits of its Cybertruck factory to Texas officials
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