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Tesla on hold as Texas court debates Cybertruck factory impact on taxpayers

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Texas county officials where Tesla is seriously considering a Cybertruck factory are still debating over an incentive package to help bring the electric carmaker to the Lone Star State.

After two nights of discussion on the pros and cons of the move, the Travis County Commissioners Court has again postponed a vote on the matter to a date next week; however, from the recent comments, it’s clear that while many local executives and business leaders are optimistic about the economic benefits of Tesla’s presence, they have concerns about taxpayers and worker benefits.

During the Court’s session on July 7th, itself a continuation of a discussion on the matter in the prior week, several community call-ins indicated a wariness towards large employers that may not have the local taxpayers and employees’ best interest at heart.

“We are enthusiastic about companies that would like to come and take advantage of our vibrant culture and economy. With regard to Tesla, we’d like to affirm they are welcome, and that as long as they are spending their own money they are welcome to come on their own terms. If, however, they want local taxpayers to help pay for their move, the county needs to hold Tesla accountable to the same standards that it holds itself accountable to. In particular…a livable minimum wage,” commented Michael Floyd, a leader within the All Saints’ Episcopal Church in central Texas.

Tesla’s possible Cybertruck factory location in Travis County, TX. (Credit: Tesla)

Jessica Wolff, deputy policy director for Workers Defense Project added, “Tesla has said that they will provide 5,000 middle skilled jobs. Our community needs more transparency. We need specifics. What types of jobs? How many will be temporary vs. permanent? What are the starting wages and benefits each will receive?”

Notably, Tesla seems to have provided fairly specific wage and benefit information in a presentation considered by the Travis County Court on June 23rd this year. Tesla’s impact on the Reno, Nevada community surrounding Gigafactory 1 could also be a positive testament to the carmaker’s potential benefit to Texas.

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(Credit: Tesla)
(Credit: Tesla)

Manuel Quinto-Pozos, representing the UAW and himself as an employment lawyer, agreed with Wolff’s comments and requested that Tesla expands on its concerns with previously discussed building standards. Jeremy Hendricks, representing local construction labor unions, also requested complete transparency in the onboarding process to ensure minimal pay and safety for workers. On a more negative note, caller Juan Bellman was completely opposed to any incentives being offered by the community. “I wanted to oppose Tesla receiving any economic development incentives,” he said bluntly. “As mentioned, I went to Travis High School and I know that my community does not need a multi-billion [dollar] company coming and receiving those taxes that I know the community needs more than them.”

The Court reconvened on July 8th where the call-in comments were more enthusiastic about the economic prospects from Tesla’s presence.

“I’m calling to urge you to approve this deal and bring Tesla to the region,” rallied executive director Ed Latson of Austin Regional Manufacturers Association (ARMA). “We think it’s an extraordinary opportunity, a political win, a cultural win, and an economic win that we have never seen. This court has the opportunity to bring hundreds of millions of dollars of economic impact to a region that has been neglected economically…[and]…impacted negatively by the current economic conditions and really give them skills and a pathway to the middle class.”

The incentives being discussed are property tax rebates worth around $15 million dollars over the course of ten years. In addition to economic incentives from Travis County, Tesla is pursuing a school tax abatement request with the Del Valle Independent School District which would save the company around $50 million over the same ten year time period. Their application package has been submitted and approved, but the District’s Board has yet to take a vote on the matter. Tesla’s decision on whether to make the Austin area its new home may hinge on gaining these tax approvals and community resistance may also explain CEO Elon Musk’s continued consideration of Tulsa, Oklahoma as an alternative location.

The Travis County Court again postponed a vote on the incentives after the July 8th session, the judge indicating that another discussion would be held on July 14th.

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Elon Musk

Elon Musk says Tesla Robotaxi launch will force companies to license Full Self-Driving

“The automakers keep being told that this isn’t real or that just buying some hardware from Nvidia will solve it. As Tesla robotaxis become widespread and their other solutions don’t work, they will naturally turn to us.”

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Tesla CEO Elon Musk says the automaker’s Robotaxi platform launch later this month will essentially force other companies to license Full Self-Driving to achieve their own goals of achieving autonomy.

Musk’s statement comes as a video captured today showed the first Tesla Robotaxi test mules on public streets in Austin, Texas, just one day after the City officially listed the company as an autonomous vehicle operator.

A prediction by investing YouTube and Tesla community member Dave Lee stated that “at least one automaker by end of year” will license Full Self-Driving from the Musk-led company, as it will give rivals the confidence to use the software to run their own self-driving operations.

Lee detailed his theory by stating that the company that chooses to commit to FSD licensing will not be able to integrate the hardware and sell those units immediately. Instead, it will take two years or so to solve the engineering and design applications.

First Tesla driverless robotaxi spotted in the wild in Austin, TX

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Musk revealed his true thoughts on other automakers’ attempts at vehicle autonomy, and said many are being told that Robotaxi is not real or that they can solve their problems with hardware orders to Nvidia.

He went on to say that companies will be forced to turn to Tesla at some point or another, because Robotaxi will be widespread and their solutions to figuring out an effective deployment will prove to be failures:

“The automakers keep being told that this isn’t real or that just buying some hardware from Nvidia will solve it. As Tesla robotaxis become widespread and their other solutions don’t work, they will naturally turn to us.”

Musk has not been shy to respond to speculation regarding the video of the Robotaxi, which was shared on X earlier today. This is perhaps one of the more fiery things he revealed. He seems ultra-confident in what Tesla will prove and achieve in the near future with the launch of the Robotaxi platform.

Many believe it will be rolled out this month. Bloomberg reported recently that Tesla was internally aiming for June 12. The company has not directly responded to these rumors.

Tesla has discussed on several occasions that it is in talks with an automaker about licensing Full Self-Driving, but it has never revealed who. The company first revealed discussions with another automaker in early 2024 when Elon Musk said:

“We’re in conversations with one major automaker regarding licensing FSD. It really just becomes a case of having them use the same cameras and inference computer and licensing our software. Once it becomes obvious that if you don’t have this (FSD) in a car, nobody wants your car. It’s a smart car… The people don’t understand all cars will need to be smart cars, or you will not sell, or nobody would buy it. Once that becomes obvious, I think licensing becomes not optional.”

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Tesla confirms it is in talks with major automaker for potential FSD licensing

Many, including us, suspected that Ford was the company that Tesla was speaking of due to Musk’s relationship with Jim Farley, which resulted in the legacy automaker being the first major car company to adopt Tesla’s North American Charging Standard (NACS), which gave them access to the Supercharging Network.

This catalyzed an onslaught of companies choosing to make the same move as Tesla had truly set itself apart in terms of charging infrastructure.

Companies may be forced to make a similar decision if it can make the same type of statement with the rollout of Robotaxi.

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Tesla CEO Elon Musk reveals new details about Robotaxi rollout

The first Tesla Robotaxi unit was spotted in Austin earlier today, and CEO Elon Musk is revealing some cool new details.

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Tesla CEO Elon Musk has revealed new details about the company’s relatively imminent rollout of the Robotaxi platform as the suspected launch date of June 12 continues to near.

Earlier today, the first video showing the first driverless Tesla Robotaxi in Austin was shared on X, just a day after the City officially listed the company as an autonomous vehicle operator on its website. Tesla is listed as a company in the “Testing” phase.

The initial details of the Robotaxi are being revealed by Musk, who is carefully releasing small tidbits that seem to show the capabilities of the entire Tesla fleet, and not necessarily just the vehicles that will be involved in the initial rollout in Austin.

First Tesla driverless robotaxi spotted in the wild in Austin, TX

His first tidbit is one that many Tesla owners and fans will already know: many Teslas are capable of this driveless performance, but Full Self-Driving is not yet refined to the point where the software is quite ready to handle it. Current versions are robust, but not prepared for driverless navigation. The hardware, however, will enable Teslas to be Robotaxis, even if they’re already purchased by owners:

This is one of the biggest advantages Tesla has over other vehicle makers. Simply put, the Over-the-Air software updates that will roll out to FSD users will eventually make their cars into Robotaxis as well.

However, Musk shed some details on the version of FSD that is being run in these new Robotaxis that were spotted. Musk said that the version these Robotaxis are running is a new version, but will soon “merge to main branch.”

There is also an even newer version that has four times the parameters as this newer version that the test-stage Robotaxis are using, but Musk admits that this needs significant refinement before it is released to the public.

As of now, Tesla is simply teasing the actual launch date of the Robotaxi program, but Bloomberg reported earlier this month that it will occur on June 12.

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First Tesla driverless robotaxi spotted in the wild in Austin, TX

The short clip suggests that Tesla may be ramping up its preparations for its robotaxi rollout in Austin.

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Credit: @TerrapinTerpene/X

A recent video posted on X has provided a first look at Tesla’s driverless robotaxi, which is expected to be deployed in Austin, Texas, this month. The vehicle was a new Tesla Model Y, which was followed by what appeared to be a manned chase car.

The short clip suggests that Tesla may be ramping up its preparations for its robotaxi rollout in Austin.

The First Robotaxi Sighting

It was evident from the short clip that the Tesla robotaxi was operating completely driverless. In the video, which was posted on X by @TerrapinTerpene, the driverless Tesla could be seen confidently making a turn. The vehicle looked and behaved like any other car on the road, save for the fact that there was no one in the driver’s seat.

Interestingly enough, the short video also provided a teaser on where Tesla will place its “robotaxi” logo on its self-driving cars. Based on the video, the robotaxis’ logo will be tastefully placed on the front doors, making the vehicles look sleek and clean.

Initial Rollout Imminent

Recent reports have suggested that Tesla is already starting the testing phase of its robotaxi service in Austin, Texas. Expectations are also high that Tesla’s initial fleet of self-driving vehicles will be utilizing a lot of teleoperation to ensure that they operate as safely as possible.

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Updates to Austin’s official website recently have hinted at Tesla’s robotaxi launch. Just this Monday, Tesla was listed as an autonomous vehicle (AV) operator on Austin’s official Department of Motor Vehicles (DMV). Other AV operators listed on the site are Waymo and Zoox, among others.

Elon Musk, for his part, has noted that by the end of June, the public in Austin should be ready to take rides in Tesla robotaxis without an invitation. He also noted in late May that Tesla has been busy testing driverless cars on Austin’s city streets without any incidents.

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