Back in March, Tesla seemed to be having nothing but issues, both inside and outside the company. When COVID was hitting its first peak, Tesla owner Elon Musk caused no end of frustration with stockholders. He consistently downplayed the epidemic and whined on social media about company losses.
Didn’t really help that he eventually started saying increasingly ridiculous things. Like claiming that he would sell all of his possessions in order to see his company through the epidemic. He didn’t end up doing that, surprising nobody, and most people just sorta moved on.
Eventually, things began to escalate when California started accusing Tesla and Musk of acting reckless and against state policies. Despite Tesla claiming that they had met the requirements and wanted to reopen.
This got even worse when Elon Musk started saying that he’d reopen the plant regardless. That decision led to California threatening legal action against the tech giant if he did not stand down and comply.
Tensions Got Really High for a Minute
All of which led to an extremely tense couple of months for Tesla. During which the stock went up, down and all around. Elon Musk continued to provide no shortage of frustration for local authorities.
One of the rumors that began making the rounds, was that Tesla was considering moving his Tesla plant out of Fremont. That rumor got credibility after Musk decided to make it an official announcement. He said that he was highly considering moving the plant after all of the issues with California.
And now, Texas is offering Tesla some exclusive tax benefits if they agree to move their plant to Austin. Not only would that see a major boost to Texas’ economy, but it would mean some big changes for California’s economy.
This is no small tax incentive either, Texas is looking to hook Tesla up pretty well. On Tesla’s first $1.1B investment on the property, they will receive a 70% rebate. Worth bearing in mind, the property itself would be around $13.9B for the company.
But, if this does get the go ahead and gets approved, it would mean a good deal to the people of Austin. The area around the planned site saw more than 80,000 people lose their jobs over the course of May. Mainly due to cutbacks while COVID raged through Texas.
If Tesla takes them up on it and expands/builds around Austin, it could be mutually beneficial across the board.