Dive Brief:
- Tesla plans to invest nearly $200 million in a site near Houston where it will open a plant similar to its Lathrop, California megafactory, a company representative said to Waller County, Texas officials last week.
- The county commissioners court approved two tax abatement agreements for Tesla on March 5. The automaker plans to spend $194 million on electrical and HVAC upgrades at the facility in a business park in Brookshire, Texas.
- “We’re really excited about this new facility,” Shiv Mysore, senior manager, engineering programs for Tesla said during the meeting, adding that the project planned for the Brookshire, Texas site “will be a replication of the same factory” the company operates in California.
Dive Insight:
Although Tesla is facing growing completion in the EV segment, the company remains focused on expanding its stationary energy storage business and expanding its domestic manufacturing footprint for batteries.
Through the second tax abatement awarded by county officials, Tesla intends to lease additional property in Brookshire where it plans to invest a total of $33 million for building improvements, a new heating and cooling system and to cover installation costs of distribution equipment.
Waller County officials did not disclose a timeline for Tesla’s expansion and the company did not respond to requests for comment from Automotive Dive. But county officials said the plant will employ as many 1,500 people, with at least 50 jobs paying more than $150,000 annually and the other positions offering salaries ranging between $50,000 and $100,000.
Tesla’s Brookshire operation is expected to mirror its Lathrop, California plant, which has capacity to produce 10,000 megapack battery units annually.
Expanding domestic production has become priority for automakers to mitigate tariffs by the Trump administration on imports from China, a major source of EV batteries.
Tesla and its competitors seek to capitlize on growing consumer demand for EVs. Cox Automotive in January projected EV sales will represent 10% of all U.S. vehicle sales in 2025.
Tesla’s Model Y and Model 3 were the top selling EVs in the U.S. in 2024.
