Elon Musk received a formal invitation on Tesla’s behalf to build a factory in Texas from County Judge Richard F. Cortez, which was supported by state Governor Greg Abbott. Last week, Musk shared the possibility of Tesla moving its operations in the Fremont factory outside California to either Nevada or Texas, following Alameda County’s continued efforts to keep company’s main facility from reopening.
In a formal letter to Musk, County Judge Richard R. Cortez of Hildago County, Texas, addressed the struggles Tesla has been enduring in California and stated his state’s willingness to welcome the EV automaker with open arms.
“I have recently read of your displeasure with authorities in California and your desire to relocate to Texas 'immediately,' Judge Cortez wrote. “I wanted to reach out to you to let you know that Hildago County, Texas is available to immediately accommodate you and Tesla Motors.”
The County Judge brought up Rio Grande Valley and Hidalgo County, which he said were locations familiar with automobile manufacturing and could be of some value to Tesla. In an effort to persuade Musk of the benefits of Tesla moving to Texas, Judge Cortez also talked about Texas’ “pro-business governor,” and the state’s “hard-working and comparatively young labor force.” As a last caveat, he briefly mentions that Texas is no longer under a shelter-at-home mandate
Governor Greg Abbott offered his support for Tesla’s move to Texas via Twitter by sharing the tax benefits the company could reap if it left California. “Elon Musk could save billions in taxes if Tesla moves its headquarters to Nevada or Texas. Just saying,” Governor Abbott tweeted, sharing an article supporting his argument.
As of this writing, Tesla's Fremont factory has been reopened under Elon Musk’s orders and Alameda County has not enforced any of the penalties it said the company would incur if it resumed operations in the facility. However, the situation is still developing.
Elon Musk could save billions in taxes if Tesla moves its headquarters to Nevada or Texas.— Greg Abbott (@GregAbbott_TX) May 11, 2020
Just saying. https://t.co/z1sxLGJ5qG
It must be noted, however, that Gigafactory Texas was already a possibility before Alameda County refused to allow the Fremont factory to reopen. In February, Elon Musk mulled over a Giga Texas project and turned to the Tesla community to see their reactions and thoughts on the subject. Giga Texas was received well amongst the Tesla community, which includes retail investors.
The only difference between then and now is that Elon Musk is thinking of moving Tesla’s main factory and headquarters to Texas, completely leaving California. Giga Texas would most likely boost the economy in neighboring areas and create job opportunities for the surrounding communities. The effects of Tesla moving out of the Fremont factory have not been discussed by government leaders who continue to oppose Elon Musk and Tesla facilities' reopening.
Featured Image Credit: TeslaFollow @PurplePanda88