Tesla gears up for 500,000-square-foot expansion of Texas factory

pedal to the metal

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.

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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.

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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.

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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.

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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

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 investor calls for all angels to move the ecosystem forward

houston innovators podcast episode 233

One of the biggest components of a well-functioning startup ecosystem is inarguably access to capital, and Mitra Miller is dedicated to enhancing education around investment and growing Houston's investor base.

As vice president and board member of the Houston Angel Network, the oldest angel network in Texas and one of the most active angel networks in the country, Miller strives to provide guidance to new and emerging angel investors as well as founders seeking to raise money from them.

"Most founders have no idea or understanding of how investors think — we are not an ATM," Miller says on the Houston Innovators Podcast. "We are really partners you are getting married to for the next 5, 8, 10 years — sometimes longer. We need to bring your allies in every sense of the word."



HAN, a nonprofit, provides a unique opportunity for its members, as Miller explains. The group consists of around 100 individuals from all business backgrounds, so evaluating companies together brings more than just a wealth of capital — but also a wealth of knowledge.

"What HAN provides is access to investments," Miller says, adding that members have the benefit in evaluating companies together with people from different backgrounds. "Inside a group like HAN, we have extraordinary expertise."

In addition to educating both founders and investors in the process, Miller has dedicated herself to providing opportunities for students in low-income parts of Houston to learn about the startup world. Eight years ago, she founded Eagle Investors, an organization that provides a year-long program that culminates in a group of students participating as judges for the Rice Business Plan Competition.

"They spend a year learning about innovation, entrepreneurship, and investing by meeting local investors, entrepreneurs, and service providers. They go around Houston to get to visit and ... experience all of the ecosystem," Miller says.

At RBPC, the cohort of high school students evaluate the pitches and select a company to provide a $5,000 prize.

Miller herself has been a judge at RBPC for 20 years now, and she's had a front row seat for watching Houston develop as an ecosystem. She's seen the city make real progress, but has one major call to action.

"The piece that I am most aware of that I would like to see grow is activating more accredited investors who are interested in this asset class of early-stage companies and plugging in," Miller says. "They can also invest their time and knowledge to help companies in our region grow and scale."

Report: Houston secures spot on list of top 50 startup cities

by the numbers

A new ranking signals great promise for the growth of Houston’s startup network.

Houston ranks among the world’s top 50 startup cities on a new list from PitchBook, a provider of data and research about capital markets. In fact, Houston comes in at No. 50 in the ranking. But if you dig deeper into the data, Houston comes out on top in one key category.

The city earns a growth score of 63.8 out of 100 — the highest growth score of any U.S. city and the seventh highest growth score in the world. In the growth bucket, Houston sits between between Paris (64.4) and Washington, D.C. (61.7).

The PitchBook growth score reflects short-term, midterm, and long-term growth momentum for activity surrounding venture capital deals, exits, and fundraising for the past six years.

PitchBook’s highest growth score (86.5) goes to Hefei, a Chinese manufacturing hub for electric vehicles, solar panels, liquid crystal displays, home appliances, and Lenovo computers.

The overall ranking is based on a scoring system that relies on proprietary PitchBook data about private companies. The system’s growth and development scores are based on data related to deals, exits, fundraising and other factors.

Houston earns a development score of 34.1 out of 100, which puts it in 50th place globally in that regard. This score measures the size and maturity of a city’s startup network.

Topping the overall list is San Francisco, followed by New York City and Beijing. Elsewhere in Texas, Austin appears at No. 16 and Dallas at No. 36.

The ranking “helps founders, operators, and investors assess locations when deciding where to expand or invest,” says PitchBook.

“Network effects matter in venture capital: Investors get more than half of their deals through referrals, according to research led by Harvard professor Paul Gompers,” PitchBook goes on to say. “So it stands to reason that dealmakers should seek these networks out when deciding where to do business.”

4 Houston universities earn top spots for graduate programs in Texas

top schools

Houston's top-tier universities have done it again. U.S. News and World Report has four Houston-area universities among the best grad schools in the state, with some departments landing among the top 100 in the country.

U.S. News publishes its annual national "Best Graduate Schools" rankings, which look at several programs including business, education, engineering, fine arts, health, and many others. For the 2024 report, the publication decided to withhold its rankings for engineering and medical schools. It also changed the methodology for ranking business schools by adding a new "salary indicator" based on a graduate's profession.

U.S. News also added new rankings for doctoral and master's programs in several medical fields for the first time in four years, or even longer in some cases. New specialty program rankings include audiology, occupational therapy, physical therapy, pharmacy, nurse midwifery, speech-language pathology, nurse anesthesia, and social work.

"Depending on the job or field, earning a graduate degree may lead to higher earnings, career advancement and specialized skill development," wrote Sarah Wood, a U.S. News Education reporter. "But with several types of degrees and hundreds of graduate schools, it can be difficult to narrow down the options."

Without further ado, here's how the local schools ranked:

Rice University's Jesse H. Jones Graduate School of Business maintained its position as No. 2 in Texas, but slipped from its former No. 24 spot in the 2023 report to No. 29 overall in the nation in 2024. Its entrepreneurship program tied for No. 8 in the U.S, while its part-time MBA program ranked No. 15 overall.

Houston's University of Texas Health Science Centerearned the No. 3 spots in Texas for its masters and doctorate nursing programs, with the programs earning the No. 31 and No. 45 spots overall in the nation. The school ranked No. 25 nationally in the ranking of Best Public Health schools, and No. 36 for its nursing-anesthesia program.

Prairie View A&M University's Northwest Houston Center ranked No. 5 in Texas and No. 117 in the nation for its master's nursing program. Its Doctor of Nursing Practice program ranked No. 8 statewide, and No. 139 nationally.

The University of Houstonmoved up one spot to claim No. 4 spot in Texas for its graduate education program, and improved by seven spots to claim No. 63 nationally. Its graduate business school also performed better than last year to claim No. 56 in the nation, according to the report. The University of Houston Law Center is the fifth best in Texas, and 68th best in the U.S. Most notably, its health care law program earned top nods for being the seventh best in the country.

Among the new specialty program rankings, UH's pharmacy school ranked No. 41 nationally, while the speech-language pathology program earned No. 44 overall. The graduate social work and public affairs programs ranked No. 67 and No. 76, respectively, in the nation.

The full list of best graduate schools can be found on usnews.com.

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