On Wednesday, Tesla’s CEO Elon Musk said that Tesla’s fourth Gigafactory will be built in Austin, Texas.
On the earnings call for the second quarter, Musk said, “We are going to make it a factory that is going to be stunning. It is right on the Colorado River. So we are actually going to have a boardwalk where there will be a hike and biking trail.
It is basically going to be an ecological paradise, birds in the trees, butterflies, and fish in the stream. And it will be open to the public as well, so not closed and only open to Tesla.”
Tesla is now the most profitable company, showing a profit for the past four straight quarters since March leading to a massive increase in its share price. According to Forbes, Elon Musk is now the seventh richest person in the world with a net worth of more than $72.2 Billion.
An analyst from Morgan Stanley warned Tesla for its share price to be overvalued and set to plunge.
Another competitor, Tulsa, Oklahoma was also interested in Gigafactory. According to CNBC, there will be tax breaks of $14 million over the next decade if they bring the $1.1 billion factories to Texas. Texas Gov. Greg Abbott commended the move as “a cornerstone for next-generation innovation” that will employ thousands of people.
Tesla’s current Asian factory is busy in manufacturing Model 3 sedans. In its new factory, Tesla will manufacture its Cybertruck, semi-truck, Model 3, and Model Y vehicles. It will hire 5,000 workers and pay them a minimum of $15 per hour.
Tesla’s current US vehicle assembly factory is in Fremont, California, which employs 10,000 workers. The company’s second US factory in Reno is building batteries for its vehicles.