Tesla taps Texas for new factory with construction already underway

Lone star state bound

Tesla's Fremont, California, factory employs around 10,000 people and uses a fleet of robots to create the vehicles. Photo courtesy of Tesla Motors

Tesla CEO Elon Musk is putting an end to months of speculation of if the Lone Star State is to be considered for Tesla's next U.S. factory. Multiple cities including Tulsa, Oklahoma, were attempting to woo the electric car manufacturer.

But, as Musk announced this week, work is already underway on a new site in Austin. The 2,100-acre site sits near the Austin-Bergstrom International Airport. Previous reporting by numerous sources revealed that Tesla had a $5 million option to purchase the property, which has around two miles of frontage on the Colorado River. A sand and gravel mining company currently operates on the site, which is off Texas State Highway 130, just south of Harold Green Road. Google already marks the site as Tesla GigaAustin.

"Tesla is one of the most exciting and innovative companies in the world, and we are proud to welcome its team to the State of Texas," Texas Gov. Greg Abbott said in a statement. "Texas has the best workforce in the nation and we've built an economic environment that allows companies like Tesla to innovate and succeed.

"Tesla's Gigafactory Texas will keep the Texas economy the strongest in the nation and will create thousands of jobs for hard-working Texans," he continues. "I look forward to the tremendous benefits that Tesla's investment will bring to Central Texas and to the entire state."

Travis County, where the plant is located, recently approved to grant a tax break for the company that is projected to amount to $14 million in savings on property taxes over the next 10 years. The Del Valle school district, where the site is located, also approved a tax holiday for the company, granting approximately $50 million in tax rebates over the same timespan.

Tesla has promised to reinvest 10 percent of the tax rebate amount back into the community.

The company is planning to spend $1.1 billions to built a 4 to 5 million square foot factory on the site that will employ around 5,000 acres according to documents filed with Travis Country. Workers would earn an average salary of around $47,000 and have benefits and stock options. Minimum pay will be $15 per hour. The workers would not be unionized.

The factory will be company's second automotive plant in the U.S. The other is located in Fremont, California, and employed around 10,000 people.

Tesla intends to make its new Cybertruck at the facility in addition to Tesla Model Y crossovers, Model 3 sedans that are destined for delivery in the Eastern U.S. The Tesla semi truck is also slated for production at the site.

On an earnings call today, Musk said that the plant will be an "ecological paradise" and it will be open to the public.

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This article originally ran on AutomotiveMap.

Tesla plans to manufacture its new Cybertruck at the facility, along with Tesla Model Y crossovers, the Tesla semi truck, and Model 3 sedans. Photo courtesy of Tesla Motors
Houston-area NASA astronauts Robert Behnken and Douglas Hurley will make a historic flight. Photo courtesy of NASA

Here's how to watch the historic NASA/SpaceX mission launch in Houston

Ready for takeoff

Update: The launch was scrubbed a few minutes before launch due to undesirable weather conditions. The new launch date is Saturday, May 30, at around 2:30 CST. The original story is below.

Two Houston-area NASA astronauts are set to make history. Robert Behnken and Douglas Hurley will blast off on Elon Musk's SpaceX's Crew Dragon spacecraft, a Falcon 9 rocket, at 3:33 pm (CST) Wednesday, May 27, from the Kennedy Space Center in Cape Canaveral, Florida.

The flight is currently scheduled as a 60-percent "go" for launch as of May 27, with only inclement weather or a technical issue holding up the takeoff. Due to COVID-19 and subsequent social distancing issue, the launch will see only a small crowd at the Cape Canaveral takeoff.

The mission will carry the duo to the International Space Station and is considered a new era of human spaceflight, as American astronauts will once again launch on an American rocket from American soil to low-Earth orbit for the first time since the conclusion of the Space Shuttle Program in 2011, according to NASA.

NASA's SpaceX Demo-2 mission is the first launch with astronauts of the SpaceX Crew Dragon spacecraft and Falcon 9 rocket to the International Space Station as part of the agency's Commercial Crew Program. It's the final flight test for SpaceX; the mission will validate the company's crew transportation system, including the launch pad, rocket, spacecraft, and operational capabilities.

This also will be the first time NASA astronauts will test the spacecraft systems in orbit — Behnken and Hurley will don new, specially designed spacesuits and use touchscreen computers systems. The pairing of NASA — a governmental agency — and SpaceX, a commercial space flight operation, means NASA could save tens of millions in flight costs and instead focus on its Artemis mission to the moon, for example.

"The ultimate goal for us as astronauts and test pilots is just to go up there and prove out the mission and to bring the vehicle home safely," Hurley told CultureMap news partner, ABC13.

Proud Houstonians can watch NASA's coverage, which began at 11:15 am Wednesday, May 27, and will run through the Crew Dragon's docking at the International Space Station on Thursday, May 28. Expect a hatch opening and welcoming ceremony.

As part of the pre-launch ceremonies, at 12:07 pm, Burleson, Texas native Kelly Clarkson sang the National Anthem.

A special called Space Launch Live: America Returns to Space airs at 1 pm on the Discovery and Science Channel and will feature special celebrity guests including singer Katy Perry, Adam Savage, former NASA engineer and YouTube star Mark Robert, and astronaut Chris Cassidy from the International Space Station.

Meanwhile, launch and prelaunch activities on YouTube, Twitter, Facebook, and even Linkedin. For those watching at home and looking for a festive theme, Space Center Houston created an at-home viewing guide, including a playlist, outfits, and space food.

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This article originally ran on CultureMap.
On Twitter, Elon Musk voiced his frustrations with California leadership. Meanwhile in Texas, local leaders said come on over. Photo via Tesla.com

Could Tesla come to Texas? Houston-area leaders extend an invite

had it with cali

Tech mogul Elon Musk has had it with local California leadership regarding their COVID-19 restrictions and their effect on operations at Tesla's facilities.

Musk took to Twitter to express himself, and floated the idea of moving to Texas or Nevada. On Saturday, May 9, Musk, who founded Tesla as well as SpaceX, threatened to pull the company's factory and headquarters out of California in an escalating spat with local officials who have stopped the company from reopening its electric vehicle factory.

An order in the six-county San Francisco Bay Area forced Tesla to close a plant starting March 23 to help prevent the virus' spread. Musk took umbrage with the order being extended until the end of May.

"Frankly, this is the final straw," Musk tweeted. "Tesla will now move its HQ and future programs to Texas/Nevada immediately."

Thus, much like Houston Mayor Sylvester Turner invited Amazon to open new digs in the Houston area, Fort Bend County Judge KP George seized on the opportunity and urged Tesla to make its way to Texas, CultureMap news partner ABC13 reports.

George penned a letter to Musk and posted it to Twitter, noting that Fort Bend County is the best location for Musk to bring his offices. The letter highlights several reasons George believes Fort Bend would be the most suitable location for his offices, as well as the number of jobs it would bring to residents in the community. It describes Fort Bend as "a unique place."

"I understand you have become frustrated with the climate in your current location as we all fight this collective invisible enemy," wrote George. "However, I think your company would greatly benefit from learning about Fort Bend County as your search for a suitable location continues."

Not to be outdone, Houston Fire Chief Sam Peña also chimed in on Twitter, welcoming Tesla to the Houston area.

No word on a Musk response to the two local officials.

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This article originally ran on CultureMap.
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Houston ranks among fastest growing tech hubs amid the pandemic, report finds

When Americans think of tech hubs, Silicon Valley or even Austin may initially come to mind. However, Houston appears to be making a play for tech-hub status.

Citing data from career platform LinkedIn, the Axios news website reports that Houston has seen a healthy influx of tech workers since the start of the pandemic. In fact, Houston ranks second among 14 major U.S. labor markets for the number of relocating software and IT workers between March 2020 and February 2021 compared with the same period a year earlier.

Miami grabs the No. 1 spot for the gain in software and IT workers (up 15.4 percent) between the two periods, with Houston in second place (10.4 percent) and Dallas-Fort Worth in third place (8.6 percent), according to the LinkedIn data.

"Young engineers and recent college graduates see Miami, Houston, and Philadelphia — not San Francisco, New York, or Seattle — as the hot new places to jumpstart a technology or creative economy career," Axios notes.

At the bottom of the barrel sits the San Francisco Bay Area, which suffered a loss of 34.8 percent when comparing the arrival and departure of software and IT workers. Interestingly, Austin experienced a loss of 8 percent in this category.

The shift from traditional tech hub to emerging tech hub is likely to continue as employers and employees alike further embrace remote work. A survey commissioned in April by the nonprofit One America Works found 47% of tech workers had moved during the pandemic. In addition, 3 in 10 tech workers anticipate living somewhere different than they did during the pandemic.

The CompTIA tech trade group says the Houston metro area is home to 243,908 tech workers. The Houston area's tech workforce grew 12.3 percent from 2010 to 2019, according to the group.

"Houston has been a center for world-changing innovations in energy, life sciences and aerospace for over a century. With science and engineering breakthroughs ingrained in the fabric of Houston's economy, the region has become a thriving hub of digital technology talent and companies thanks to our access to customers and expertise," says a report released in March by the Greater Houston Partnership.

One employer taking advantage of that talent is Bill.com. In 2019, the digital payments company opened a Houston outpost — the company's first office outside Silicon Valley.

"Though the city's technology industry is still developing, it offers a breath of fresh air compared to overcrowded late-stage tech markets like Austin and Denver. Ultimately, the breadth and depth of Houston's talent pool and the neighboring educational pipelines made it an ideal location for a second home," Vinay Pai, senior vice president of engineering at Palo Alto, California-based Bill.com and a Rice University graduate, wrote in April 2020 on LinkedIn.

Energy giant makes Houston sole headquarters in massive move

HQ move

Power player NRG Energy is laser focused on Houston. The Bayou City will be the energy giant's new sole headquarters; the company will no longer split between Houston and Princeton, New Jersey.

The move to a single headquarters simplifies business operations, as a large number of the company's employees and customers reside in Texas, the company noted in a press release and report.

The company, having recently acquired Direct Energy, will maintain regional offices in the markets that it serves and "evaluate real estate needs and consolidate as appropriate," the report adds.

Mayor Sylvester Turner welcomed the news in a statement, relaying that he and his team have had "substantive conversations" with NRG president and CEO Mauricio Gutierrez. "I believe the decision is confirmation that Houston is a smart city for business," said Turner.

Texas Gov. Greg Abbott also chimed in, adding in part:

With this move, NRG joins 50 other Fortune 500 companies headquartered in Texas, including 22 in the Houston area alone. America's leading businesses continue to invest in Texas — and grow jobs in Texas — because of our welcoming business climate, low taxes, reasonable regulations, and our young, growing, and skilled workforce.
I thank NRG Energy for designating Texas — the energy capital of the world — as their corporate headquarters, and I look forward to our continued partnership as we ensure a more prosperous future for all who call the Lone Star State home.

Turner noted that more than a year ago, the City of Houston committed to purchasing 100 percent renewable energy through a renewed partnership with NRG Energy as the City's retail electric provider. "The plan is helping us build a more sustainable future, save over $9 million on our electric bill, and reduce emissions," he said.

NRG Energy boasts some 3,000 employees in Houston alone. In its report, the company reported a net loss of $83 million due the impact of Winter Storm Uri.

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This article originally ran on CultureMap.

3 Houston innovators to know this week

who's who

Editor's note: In this week's roundup of Houston innovators to know, I'm introducing you to three local innovators across industries — tech, health care, and more — recently making headlines in Houston innovation.


Emily Cisek, founder of The Postage

The Postage — a Houston-based company that's streamlining afterlife planning — has rolled out a new app. Photo courtesy of The Postage

Emily Cisek had a mission when she founded The Postage. She wanted to make afterlife planning simpler — and she's taken one giant step toward that goal with the company's new app.

"What we wanted to do [with the app] is make it so easy to plan your life and the end of your life using one click — as easy as it was for posting and commenting on social media," explains Cisek. "People are so used to reflecting on those behaviors and clicking one button to add a picture ... we wanted to make it that simple."

Though The Postage's website had mobile functionality, the app includes the ability to record and upload content. Whether snapping a picture of their insurance policy or recording a video to share with loved ones, The Postage app allows users to capture photos and videos directly within the app. Click here to read more.

Kevin Coker, CEO of Proxima Clinical Research

Kevin Coker, CEO of Proxima Clinical Research, say his company transform from uncertainty to almost uncontrollable growth in just 12 months. He shares what happened on this week's episode of the Houston Innovators Podcast. Photo courtesy of Proxima

After a huge dip in business due to the pandemic, a Houston company focused on supporting innovative life science companies saw 12 months of unprecedented growth. Kevin Coker, CEO of Proxima Clinical Research, says that's not only a good sign for the future of his business — but also of the future of Houston's life science sector.

"We're a good barometer for what's happening not only locally but across the country," Coker says. "As Proxima has grown, it's really show how the Houston life science market is growing."

Coker shares more about Proxima's growth and Houston's potential of being a major life science hub on the episode. Click here to read more and stream the episode.

Sylvia Kampshoff, founder of Kanthaka

Sylvia Kampshoff has launched Kanthaka's first crowdfunding campaign. Photo courtesy of Kanthaka

Sylvia Kampshoff has lofty goals for her company Kanthaka, a platform for connecting users to personal trainers across over a dozen cities. With the launch of a new $1 million crowdfunding raise, Kampshoff is one step closer to growing her business according to these goals.

"Our vision is to become Amazon for health & fitness and the go-to provider to live a longer, happier and healthier life," Kampshoff says. "We couldn't be more excited about this journey." Click here to read more.

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