The electric vehicles producer is already plotting an expansion. Courtesy of Tesla

Less than a year after Tesla opened its factory in Texas, the maker of electric vehicles is already plotting an expansion.

A permit application filed June 29 with the City of Austin and approved July 1 shows Austin-based Tesla plans to build a two-floor, 500,000-square-foot space to enlarge its General Assembly 2 and General Assembly 3 operations. Currently, Tesla produces Model Y vehicles at the 2,500-acre site, which is along State Highway 130 near State Highway 71 East.

The 500,000-square-foot expansion, first reported by Tesla watcher Sawyer Merritt, would grow the size of the factory by more than 11 percent.

Production at the plant began late last year. In April, Tesla co-founder and CEO Elon Musk hosted an invitation-only grand opening bash at the factory.

The Tesla permit doesn’t indicate how much the expansion will cost. But we can get an idea by looking at how much the factory cost to build.

Paperwork filed last year with the Texas Department of Licensing and Registration identified $1.06 billion in construction expenses for nearly 4.3 million square feet of space. That works out to $247 per square foot. If you apply that figure to the proposed expansion, it would cost nearly $124 million. Of course, that’s a rough estimate, and construction costs have gone up since the existing factory was finished.

The proposed expansion comes as overall production at Tesla’s plants has tapered off. According to the Reuters news service, analysts predict Tesla will report second-quarter deliveries of 295,078 vehicles. That would be below the record-setting total of 310,048 vehicle deliveries in the first quarter.

It’s not known precisely how many vehicles Tesla is producing at the Austin plant, but industry insiders estimate the total ranges from 2,000 to 5,000 vehicles per week. The Electrek blog says Tesla is aiming to manufacture 10,000 vehicles per week there by the end of this year.

------

This article originally ran on CultureMap.

Now that Tesla's vehicle manufacturing factory is up and running, the company is planning another facility adjacent to the site. Courtesy of Tesla

Tesla cranks up Texas expansion with plans for massive new facility

driving more growth

Tesla has barely begun manufacturing electric vehicles at its new factory in east Travis County, and it’s already planning an expansion.

The Austin-based automaker is eyeing a 32-acre site adjacent to its auto manufacturing plant to build a nearly 1.6-million-square-foot industrial facility that would produce cathodes for battery manufacturing, as first reported by the Electrek industry website.

Tesla owns about 2,100 acres where the new 4.3-million-square-foot factory stands. The factory started producing vehicles late last year.

An application submitted earlier this month for an Austin building permit lists Colorado River Project LLC as a co-applicant for a project named “Cathode,” according to the Reuters news service. That’s the corporate name Tesla has used throughout the permitting process for the new factory. A spokeswoman for Austin Development Services Department told Reuters that the latest permit is for a Tesla cathode facility.

Reuters explains that cathodes are the most expensive component of a battery, and making them requires a lot of space and emits significant amounts of carbon dioxide.

It’s unclear when construction on the Tesla cathode facility might start and how many people it might employ. The Tesla car manufacturing plant is expected to employ at least 5,000 people.

A search of Tesla’s website found one job posting in Austin that contains the word “cathode.” The company is seeking an “energetic and engaging” quality supervisor to lead one of the first teams of quality technicians for Tesla’s “Cathode Quality Control Lab.”

“You will exercise your exceptional people skills to delegate tasks and guide personnel in developing one of Tesla’s newest manufacturing teams. Your proven record of driving improvements and agility in responding to quality excursions will enable you to set the tone for the rest of the team,” the job posting says.

Last year, Tesla moved its headquarters from Northern California to 2,100-acre site in east Travis County.

------

This article originally ran on CultureMap.

Austin-based Tesla has released new information on its Megapack project, which is being stood up south of Houston in Angleton. Screenshot via YouTube.

Tesla reveals details on massive power storage facility being built south of Houston

texas-sized energy project

Tesla Inc. has taken the wraps off a backup-power storage project in Angleton designed to ease the impact of incidents like February 2021’s near-collapse of the Texas power grid.

The project’s 81 Tesla Megapacks are aimed at providing backup power while reducing reliance on fossil fuels. Tesla says its Megapack batteries store clean energy that can be used anytime.

The Bloomberg news service reported last March that the more than 100-megawatt Angleton project could power about 20,000 homes on a hot summer day. Austin-based Tesla unveiled the 2.5-acre project in a YouTube video posted January 6.

A presentation made to the Angleton City Council by Plus Power LLC indicates the Megapack project is supposed to be part of a larger energy-storage “park.” The park could generate about $1 million in property tax revenue over a 10-year span, the presentation says.

San Francisco-based Plus Power, which has an office in Spring, develops battery-equipped systems for energy storage.

The Megapack project, built by Tesla subsidiary Gambit Energy Storage LLC, is registered with the Electric Reliability Council of Texas (ERCOT), according to Bloomberg. The quasi-governmental agency operates about 95 percent of the Texas power grid. ERCOT came under intense criticism after last February’s massive winter storm left millions of Texans without power for several days.

Tesla’s new energy-storage system is adjacent to a Texas-New Mexico Power Co. substation, Bloomberg says.

“Tesla’s energy-storage business on a percentage basis is growing faster than their car business, and it’s only going to accelerate,” Daniel Finn-Foley, head of energy storage at Wood MacKenzie Power and Renewables, told Bloomberg. “They are absolutely respected as a player, and they are competing aggressively on price.”

In November, the Texas Public Utilities Commission approved an application from Tesla subsidiary Tesla Energy Ventures LLC to be a retail provider of electricity in Texas. The power will be sold to residential and business customers throughout the ERCOT grid.

Tesla's Austin factory could generate a $10 billion local investment, according to Musk. Courtesy of Tesla

Elon Musk says Tesla’s new Texas factory will drive $10 billion in total investment

revved-up ROI

With 66.8 million followers on Twitter, Elon Musk’s tweets attract an outsized amount of attention. So, when Musk tweeted December 16 that the new Tesla factory east of Austin would represent a long-term investment of at least $10 billion, generating over 20,000 direct jobs and 100,000 indirect jobs, it raised more than a few eyebrows.

Until that tweet appeared, Tesla — the Austin-based electric vehicle maker headed by Musk — had indicated it would invest $1.1 billion in the plant and would create at least 5,000 jobs and potentially 10,000 jobs there. As such, was Musk’s December 16 tweet promising far more than that a spot-on statement or a far-fetched embellishment? Musk hasn’t elaborated on his tweet, but experts believe his pronouncement isn’t in the wrong lane.

Corporate site consultant John Boyd doesn’t think the tweet is “hyperbole from larger-than-life Musk,” who is the world’s richest person.

“The magnitude of the Austin campus, the sea change transforming the North American auto industry, and Musk’s extensive business enterprises could easily support those kind of … numbers,” Boyd says. “I have found that the outspoken Musk is not prone to exaggeration and has no problem speaking his mind.”

Moreover, Boyd foresees Musk bulking up the Austin factory site — which is now Tesla’s corporate headquarters — with operations from his other ventures, such as SpaceX and Neuralink.

“Tesla is just a piece of the pie for Musk. Look for him to co-locate some of his other enterprises on his massive Austin site,” Boyd says. “It would be hard for him to find a better labor market and a more favorable state business and tax climate than he now enjoys in Austin.”

Tesla’s production capacity at the Austin plant for its Model Y, Cybertruck, and Semi vehicles could warrant Musk’s new claims about the size of the new factory’s investment and workforce, says Matt Patton, executive vice president of Austin-based economic development consulting firm AngelouEconomics.

“The potential for expanding the factory is there,” Patton says.

------

This article originally ran on CultureMap.

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 taps Texas for new factory with construction already underway

Lone star state bound

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.

------

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

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.

------

This article originally ran on CultureMap.

Ad Placement 300x100
Ad Placement 300x600

CultureMap Emails are Awesome

Houston family's $20M donation drives neurodegeneration research

big impact

Neurodegeneration is one of the cruelest ways to age, but one Houston family is sharing its wealth to invigorate research with the goal of eradicating diseases like Alzheimer’s.

This month, Laurence Belfer announced that his family, led by oil tycoon Robert Belfer, had donated an additional $20 million to the Belfer Neurodegeneration Consortium, a multi-institutional initiative that targets the study and treatment of Alzheimer’s disease.

This latest sum brings the family’s donations to BNDC to $53.5 million over a little more than a decade. The Belfer family’s recent donation will be matched by institutional philanthropic efforts, meaning BNDC will actually be $40 million richer.

BNDC was formed in 2012 to help scientists gain stronger awareness of neurodegenerative disease biology and its potential treatments. It incorporates not only The University of Texas MD Anderson Cancer Center, but also Baylor College of Medicine, Massachusetts Institute of Technology (MIT) and Icahn School of Medicine at Mount Sinai.

It is the BNDC’s lofty objective to develop five new drugs for Alzheimer’s disease and related disorders over the next 10 years, with two treatments to demonstrate clinical efficacy.

“Our goal is ambitious, but having access to the vast clinical trial expertise at MD Anderson ensures our therapeutics can improve the lives of patients everywhere,” BNDC Executive Director Jim Ray says in a press release. “The key elements for success are in place: a powerful research model, a winning collaborative team and a robust translational pipeline, all in the right place at the right time.”

It may seem out of place that this research is happening at MD Anderson, but scientists are delving into the intersection between cancer and neurological disease through the hospital’s Cancer Neuroscience Program.

“Since the consortium was formed, we have made tremendous progress in our understanding of the molecular and genetic basis of neurodegenerative diseases and in translating those findings into effective targeted drugs and diagnostics for patients,” Ray continues. “Yet, we still have more work to do. Alzheimer's disease is already the most expensive disease in the United States. As our population continues to age, addressing quality-of-life issues and other challenges of treating and living with age-associated diseases must become a priority.”

And for the magnanimous Belfer family, it already is.

3 Houston innovators to know this week

who's who

Editor's note: Every week, I introduce you to a handful of Houston innovators to know recently making headlines with news of innovative technology, investment activity, and more. This week's batch includes a podcast with the founder of a new venture firm, a former astronaut and recent award recipient, and a health care innovator with fresh funding.

Zach Ellis, founder and managing partner of South Loop Ventures

Zach Ellis explains on the Houston Innovators Podcast that South Loop Ventures plans to invest in promising companies from across the country and bring them into Houston's ecosystem to grow and scale. Photo via LinkedIn

Houston has a lot of the right ingredients for commercialization and scaling up companies, so when Zach Ellis moved to town to stand up a venture capital firm that made investments in diverse founders, he decided to go about it in an innovative way.

South Loop Ventures, which Ellis launched two years ago, invests in pre-seed and seed-stage startups across health care, climatetech, aerospace, sports, and fintech. While the first handful of investments, which have already been made, are into Houston-based companies, Ellis explains on the Houston Innovators Podcast that the firm plans to invest in promising companies from across the country and bring them into Houston's ecosystem to grow and scale.

"Any investor wants to feel like they are looking at the best possible investment opportunities in which to deploy capital," Ellis says on the show. "So that's reason No. 1 to cast your net as widely as possible.

"At the same time, you want to give any investment that you make greatest chances of success," he continues. "The biggest factor of success outside of the team and the capital you give them, is the customers that they can call upon. In bringing targeted companies to Houston or connecting them with Houston, you introduce the opportunity for them to achieve rapid scale and work with world-class partners very efficiently." Read more.


Toby R. Hamilton, founder and CEO of Hamilton Health Box

Dr. Toby Hamilton has secured $10 million to grow his company. Photo via tmc.edu

A Houston company that is working on a value-based model for primary care has fresh funding to support its mission.

Hamilton Health Box announced the completion of a $10 million series A funding round led by 1588 Ventures with participation from Memorial Hermann Health System, Impact Ventures by Johnson & Johnson Foundation, Texas Medical Center Venture Fund, and the Sullivan Brothers.

The company, founded in 2019 by Dr. Toby R. Hamilton, will use the funding to fuel its expansion into rural areas to help assist those living in Health Professional Shortage Areas, or HPSAs. Read more.

Ellen Ochoa, former astronaut and center director at the NASA's Johnson Space Center

Ellen Ochoa was recognized for her leadership at NASA Johnson and for being the first Hispanic woman in space. Photo via NASA

Two astronauts recently received Presidential Medals of Freedom from President Joe Biden for their leadership in space.

Ellen Ochoa, the former center director and astronaut at the NASA's Johnson Space Center in Houston, and Jane Rigby, senior project scientist for NASA’s James Webb Space Telescope, were honored at the White House on May 3.

Ochoa spent 30 years with NASA, which included being the 11th director of JSC, deputy center director of JSC, and director of Flight Crew Operations. She served on the nine-day STS-56 mission aboard the space shuttle Discovery in 1993, and became the first Hispanic woman in space. She flew four more times to space with STS-66, STS-96, STS-110, and more.

“I’m so grateful for all my amazing NASA colleagues who shared my career journey with me,” Ochoa says in a NASA news release. Read more.

Houston health care institutions receive $22M to attract top recruits

coming to Hou

Houston’s Baylor College of Medicine has received a total of $12 million in grants from the Cancer Prevention & Research Institute of Texas to attract two prominent researchers.

The two grants, which are $6 million each, are earmarked for recruitment of Thomas Milner and Radek Skoda. The Cancer Prevention & Research Institute of Texas (CPRIT) announced the grants May 14.

Milner, an expert in photomedicine for surgery and diagnostics, is a professor of surgery and biomedical engineering at the Beckman Laser Institute & Medical Clinic at the University of California, Irvine and the university’s Chao Family Comprehensive Cancer Center

In 2013, Milner was named Inventor of the Year by the University of Texas at Austin. At the time, he was a professor of biomedical engineering at UT. One of his major achievements is co-development of the MasSpec Pen, a handheld device that identifies cancerous tissue within 10 seconds during surgical procedures.

Skoda is a professor of molecular medicine in the Department of Biomedicine at the University of Basel and the University Hospital Basel, both in Switzerland. He specializes in developing treatments for myeloproliferative neoplasms, which are a group of blood diseases including leukemia.

Other recruitment grants provided by the institute to Houston-area organizations are:

  • $4 million for recruitment of Susan Bullman to the University of Texas M.D. Anderson Cancer Center. She was an assistant professor at Seattle’s Fred Hutchinson Cancer Center, where she studied the connection between microbes and cancer.
  • $4 million for recruitment of Oren Rom to the University of Texas M.D. Anderson Cancer Center. Rom is an assistant professor of pathology and translational pathobiology at Louisiana State University Shreveport.
  • Nearly $2 million for recruitment of Lauren Hagler to conduct RNA cancer biology at Texas A&M University. She is a postdoctoral scholar in biochemistry at Stanford University.

The institute also awarded grants to five companies in the Houston area:

  • $4.7 million to 7 Hills Pharma for development of immunotherapies to treat cancer and prevent infectious diseases.
  • $4.5 million to Indapta Therapeutics for the Phase 1 trial of a cell therapy for treatment of multiple myeloma and non-Hodgkin’s lymphoma.
  • $2.75 million to Bectas Therapeutics for development of antibodies and biomarkers to overcome a type of resistance T-cell checkpoint therapy.
  • $2.69 million to MS Pen Technologies for development of technology that differentiates between normal tissue and cancerous tissue during surgery.
  • $2.58 million to Crossbridge Bio for development of an antibody-drug combination to treat certain solid tumors.