Tesla Paid Nearly $100M To Acquire Texas Gigafactory Land

Tesla Inc TSLA paid nearly $100 million for the 2,000-acre land on which it plans to build its latest gigafactory, Electrek reported Sunday.

What Happened

The former owner of the property, TXI Operations LP, a unit of Martin Marietta Inc MLM, revealed in an earnings call on July 28 that it sold a “depleted standing gravel location” for $97 million, as earlier reported by local Austin media.

TXI IOperations didn't give further details on the property it sold, or the name of the buyer, but according to Electrek, the reference is to none other than Tesla's under-construction manufacturing facility near Austin, Texas.

The electric vehicles maker had purchased the land through its subsidiary Colorado River Project, LLC. 

Why It Matters

Heavy machinery has been spotted at the site since the last month, on all days of the week, Electrek noted. The scale of the upcoming factory is impressive and the new facility could potentially become one of the world's largest buildings, upon completion.

CEO Elon Musk said on the company’s second-quarter earnings call that the Texas factory would have walking paths and other natural features for the public to enjoy.

The Gigafactory would primarily be used to build the company’s all-electric pickup vehicle, the Cybertruck.

Price Action

Tesla shares closed 2.48% lower at $1,452.71 on Friday.