Tesla pitched a $1bn project to the state and county officials in Austin, Texas on June 23 after weeks of speculation. 

 

The plan includes setting up a five million square feet plant to manufacture the carmaker’s Cyber Truck and Model Y projects. The factory would add 5,000 jobs to Travis county, where Tesla wants to set up its operations. 

 

According to media reports, the initiative would be viewed positively by county officials at a time when the country is facing an unemployment crisis. The latest unemployment data from the Federal Reserve has indicated that unemployment rates have risen to 12.4pc by June from 2.2pc during the same period last year. 

 

Tesla has also appealed to Travis county for a rebate on property tax on the facility to the extent of 85pc for the first 10 years and subsequently at 65pc for the next 10 years. Government officials will take a decision on these requests over the next few weeks, reports indicated. 

 

Elon Musk, the chief executive officer and founder of Tesla had previously threatened to move the company’s headquarters also to Austin after a feud with government officials in Alameda County, California over the shuttering of operations at its flagship plant in Fremont in May.

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