Tesla Asks Texas For Tax Incentives As It Proposes To Start Construction For New Factory By Q3

Tesla Inc. TSLA filed an application with an Austin-area school district in Travis County, Texas earlier this month asking for tax incentives to build a new factory, Bloomberg reported Thursday.

What Happened

The automaker said in the application it has zeroed in on a 2,100 acres site, currently owned by Martin Marietta Materials Inc.

Tesla is asking for significant tax incentives for the Texas facility to remain competitive with another site the Palo Alto-based company is considering in Tulsa, Oklahoma. If it goes ahead with the plan to build the factory at the site, Tesla expects to begin construction by the third fiscal quarter this year, investing about $1 billion at the 4-5 million square foot assembly facility. The automaker said in the filing the factory would create 5,000 new jobs.

Why It Matters

Chief Executive Officer Elon Musk in March announced that Tesla was scouting for locations to build a new manufacturing facility for its recently-launched Cybertruck.

Musk said on Thursday the company hasn't yet purchased the Texas land, and Tesla is "considering several options."

Price Action

Tesla shares closed 1.2% higher at $1,003.96 on Thursday. The shares added another 0.8% in the after-hours session at $1,011.99.