Tesla Isn’t Messing about: They Are In Negotiations With Texas

• Last May, Musk tweeted that Tesla will move its HQ and more to Nevada and Texas.

• This happened following Musk’s desire to re-open his Freemont plant in early May.

• Building and moving to Texas from California could save Tesla millions upon millions of dollars.

The COVID-19 pandemic essentially shut the entire planet down. Once lockdown provisions began lifting, some businesses go back to doing their thing. Hotspots, including New York and California, were scheduled to open back up at later dates but Musk wanted to get his Freemont plan back on-line ahead of schedule. When the Almeda County interim health officer denied Musk’s request, he tweeted that Tesla was leaving California and headed to Nevada and Texas.

Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas/Nevada immediately. If we even retain Fremont manufacturing activity at all, it will be dependen on how Tesla is treated in the future. Tesla is the last carmaker left in CA.

— Elon Musk (@elonmusk) May 9, 2020

At the time, Musk’s tweet was essentially brushed aside, and considered an empty threat. According to Fox News, things are getting real. Negotiations with Travis County (where Austin is located) involving property tax abatements, a $25 billion investment, and up to 30,000 jobs.

This new Gigafactory would be responsible for building the upcoming Cybertruck and more Model Y SUVs. Musk’s final words on that May 9^th tweet were: “Tesla is the last carmaker left in CA.” Interestingly, we learned yesterday that Rivian has already begun setting up shop in Southern California, leaving Michigan and Illinois behind.