Tesla plans to build new megafactory in Texas
Tesla (TSLA) is set to build a new megafactory near Houston, Texas, to operate a battery storage facility, according to a report by Electrek on Wednesday, citing a tax abatement agreement with Waller County.
The electric vehicle company is going to build and manage its Megapack energy products in over a 1-million-square-foot building near Katy, Texas, News.Az reports, citing Reuters.
Under the tax agreement, the company will receive abatements from the county based on property upgrades, including $44 million in facility improvements and $150 million in Tesla manufacturing equipment.
The Waller County office of Economic Development Partnership and Tesla did not immediately respond to Reuters' requests for comment.
The majority of Tesla's income is generated from its EV business, but CEO Elon Musk has been working on growing its solar energy and battery business.
Tesla has a similar gigafactory in China, where production trials began late last year. The plant will help the company take advantage of China's supply chain and lower costs of its lithium-ion batteries.
The new factory in Texas should also create around 1,500 jobs, Electrek reported.
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