News
Tesla’s Cybertruck Terafactory poised to get incentive package from Texas officials
Travis County, Texas officials, are currently in the process of working out the details of an incentive deal with Tesla. The incentives are geared toward bringing the electric automaker’s next production facility to the city of Austin.
The Travis County Commissioners Court is reportedly meeting to discuss potential incentives later today, June 16, The Statesman reported. The terms of the incentives will be discussed during the meeting, and a vote from members of the Commissioners Court will be held in the coming weeks.
The specific details of the possible incentive package for Tesla have not been disclosed publicly, and members of the Court have not commented on the matter as of writing.
Tuesday’s Commissioner’s Court agenda contains an item that is recognized as “consider and take appropriate action on a project under Travis County Code Chapter 28.” Chapter 28 of the Travis County Code talks about incentives for local economic development, which could refer to the reports of Tesla’s potential incentive package.
Sources close to the situation believe that Agenda Item 21 is related to Tesla’s incentive package. The United Auto Workers (UAW) director of public relations, Brian Rothenberg, believes “that Item 21 on the agenda is related to Tesla.” The UAW is a union for employees of automakers.
UAW Vice President Cindy Estrada also believes that Item 21 is directly related to Tesla’s possible presence in the area. “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,” she said. “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.”
It has been rumored that Tesla is eyeing either Austin, Texas, or Tulsa, Oklahoma, for its next production facility. While it is widely considered that Austin is an overwhelming favorite due to previous comments made by Tesla CEO Elon Musk, Tulsa is pushing hard to convince the electric automaker it would be a good fit for the company’s next production facility.
Either location is ideal for Tesla’s upcoming plans, which include the production of the highly-anticipated Cybertruck and the recently released Model Y crossover. Musk has stated that he wanted the company’s next U.S. facility to be in the central portion of the country, which would alleviate East Coast customers from extended delivery periods.
Musk and company CFO Zachary Kirkhorn also indicated during the Q1 2020 Earnings Call that the next production facility the company builds would be the largest thus far. “I’ll also add that our Gigas have gotten bigger,” Kirkhorn said. Musk added, “It could arguably — it could start being called Tera.”
Kirkhorn expanded on the idea of more extensive production facilities as well. “Yes, with multiple products as well. And so the absolute number of Giga factories, we may ultimately build might be less, but each one is larger,” he said. “And that’s under our belief that just significant efficiencies by having as much as possible, and similar product lines under the same roof, and as much vertical integration as possible all in one facility.”
At least 10,000 employees are expected to work at the new facility based on the fact that it will be larger than the Fremont factory. If Tesla does choose the Lone Star State, it would be a “great win for Texas and Austin,” economist Angelos Angelou stated.
Investor's Corner
Tesla (TSLA) Q1 2025 earnings: What to expect
Tesla stock reached as high as $488.54 per share in 2024, though it is trading at around $240 per share as of writing.
Tesla (NASDAQ:TSLA) is expected to release its first quarter 2025 results after markets close today, April 22, 2025.
At 4:30 p.m. Central Time / 5:30 p.m. Eastern Time, executives such as CEO Elon Musk will also be holding a Company Update and the Q1 2025 earnings call.
Tesla Q1 Deliveries and Production
Tesla missed estimates in the first quarter, with the company delivering a total of 336,681 vehicles worldwide. A total of 362,615 vehicles were also produced during this period.
While the delivery results of Tesla’s electric vehicle business were subpar in Q1 2025, the company’s energy division exhibited strong performance during the quarter, deploying a total of 10.4 GWh worth of energy storage products.
Earnings Estimates
As noted in a Forbes report, expectations are high that Tesla will report a gain of $0.35/share on $21.85 billion in revenue. Whisper numbers, however, reportedly suggest that the electric vehicle maker will only post a gain of $0.31 per share.
Analysts polled by the FactSet, however, expect Tesla to see an EPS of $0.41 per share on revenues of $21.27 billion, as noted in an Investors’ Business Daily report.
Tesla Stock So Far
Tesla stock reached as high as $488.54 per share in 2024, though it is trading at around $240 per share as of writing. Tesla stock has been naturally volatile, however, so it is prone to notable moves depending on its Q1 earnings.
If the numbers are good, Tesla stock could easily gap up, but if they are disappointing, it would not be surprising if TSLA shares gap down.
FSD, New Vehicle Updates
Tesla is expected to launch a dedicated robotaxi service this June in Austin, Texas. The company has also been hinting at more affordable models that will be launched in the first half of 2025. Expectations are high that CEO Elon Musk will share some updates on these projects, particularly the rollout of Tesla’s FSD Unsupervised system.
Rivian has strengthened its AI strategy by appointing Aidan Gomez, co-founder and CEO of generative AI startup Cohere, to its board. Gomez’s appointment was announced through a regulatory filing. The move underscores Rivian’s ambition to lead in automotive software and AI-driven autonomy.
Gomez is a data scientist and AI expert. He launched Cohere in 2019, focusing on AI foundation models for enterprises like Oracle and Notion. Gomez will be on Rivian’s board until 2026. His appointment expands Rivian’s board and aligns with the company’s $5.8 billion joint venture with Volkswagen Group to develop software. The venture leverages Rivian’s electrical architecture expertise, licensing intellectual property, and may sell tech to other firms in the future.
Gomez’s expertise is a strategic fit, with CEO RJ Scaringe stating the AI expert’s “thinking and expertise will support Rivian as we integrate new, cutting-edge technologies into our products, services, and manufacturing.”
Rivian’s AI efforts include an AI assistant for its EVs, which has been under development since 2023, according to the automaker’s Chief Software Officer Wassym Bensaid.
“The AI work, which is specifically on the orchestration layer or framework for an AI assistant, sits outside the joint venture with VW,” Bensaid told TechCrunch.
Morgan Stanley analyst Adam Jonas sees Rivian’s value in its AI and autonomy potential, not just its EVs. “We see scope for Rivian to play a more important role in AI-enabled autonomy with potential milestones in 1H25,” Jonas said, highlighting the upcoming period as “consequential to determining Rivian’s place in the autonomous vehicle race.”
Jonas believes Rivian stands out as a non-Tesla, U.S.-based “software-defined” company with a fully integrated, AI-driven autonomous platform fueled by advances in generative AI and large language models.
Gomez’s board role positions Rivian to capitalize on AI innovations, enhancing its software leadership and autonomous vehicle development. As the EV maker navigates its Volkswagen partnership and internal AI projects, Gomez’s expertise could drive breakthroughs, reinforcing Rivian’s dual identity as an EV manufacturer and a tech innovator in a competitive landscape.
News
Tesla Model Y gets five-year, zero-interest financing deal in China
The program was announced by the electric vehicle maker through its official Weibo account.
Tesla has launched a five-year, zero-interest financing deal for the new Model Y in China.
The program was announced by the electric vehicle maker through its official Weibo account.
Model Y Financing Program Details
The new five-year, zero-interest financing deal is available through June 30, and it applies to all Model Y variants, the rear-wheel-drive (RWD) and long-range all-wheel-drive (AWD), which start at 263,500 yuan ($36,300) and 313,500 yuan ($42,950), respectively. Buyers can qualify for the program by paying a down payment of as low as 79,900 yuan ($10,950), with monthly payments starting at 3,060 yuan ($420).
It should be noted that prior to the recently announced program, Tesla China had offered a three-year, zero-interest financing deal for the new Model Y RWD and AWD.
New Model Y Sales So Far
Tesla’s new five-year, zero-interest financing program comes amidst heightened competition in China’s electric vehicle sector. For context, the company sold 74,127 vehicles domestically in March, up 18.8% year-over-year, as noted in a CNEV Post report. From this number, the Model Y accounted for 48,189 deliveries.
During the week of April 14-20, Tesla China also saw 6,800 new vehicle registrations, suggesting that Giga Shanghai is focusing on exports this month.
Other Updates And Incentives
Tesla China also extended an 8,000-yuan insurance subsidy for the Model 3 through April 30. A five-year, zero-interest financing program was launched for the all-electric sedan as well. To qualify, buyers would have to pay a down payment of as low as 79,900 yuan ($10,950), with monthly payments starting at 2,460 yuan ($340).
A new Star Diamond Black paint option for both the Model Y and Model 3 was also announced. Delivery times remain steady as well, with the Model Y RWD seeing a 2-4 week wait time and the Model Y Long Range AWD seeing a 3-5 week wait time. The Model 3 is listed with a 1-3 week wait time for all its variants.
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