Tesla cranks up Texas expansion with plans for massive new facility

driving more growth

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 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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This article originally ran on CultureMap.

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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

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3 Houston innovators who made headlines in May 2025

Innovators to Know

Editor's note: Houston innovators are making waves this month with revolutionary VC funding, big steps towards humanoid robotics, and software that is impacting the agriculture sector. Here are three Houston innovators to know right now.

Zach Ellis, founder and partner of South Loop Ventures

Zach Ellis. Photo via LinkedIn

Zach Ellis Jr., founder and general partner of South Loop Ventures, says the firm wants to address the "billion-dollar blind spot" of inequitable distribution of venture capital to underrepresented founders of color. The Houston-based firm recently closed its debut fund for more than $21 million. Learn more.

Ty Audronis, CEO and founder of Tempest Droneworx

Ty Audronis, CEO and founder of Tempest Droneworx

Ty Audronis, center. Photo via LinkedIn.

Ty Audronis and his company, Tempest Droneworx, made a splash at SXSW Interactive 2025, winning the Best Speed Pitch award at the annual festival. The company is known for it flagship product, Harbinger, a software solution that agnostically gathers data at virtually any scale and presents that data in easy-to-understand visualizations using a video game engine. Audronis says his company won based on its merits and the impact it’s making and will make on the world, beginning with agriculture. Learn more.

Nicolaus Radford, CEO of Persona AI

Nicolaus Radford, founder and CEO of Nauticus RoboticsNicolaus Radford. Image via LinkedIn

Houston-based Persona AI and CEO Nicolaus Radford continue to make steps toward deploying a rugged humanoid robot, and with that comes the expansion of its operations at Houston's Ion. Radford and company will establish a state-of-the-art development center in the prominent corner suite on the first floor of the building, with the expansion slated to begin in June. “We chose the Ion because it’s more than just a building — it’s a thriving innovation ecosystem,” Radford says. Learn more.

Pharmaceutical giant plans $5.9B Houston facility and more news to know

Trending News

Editor's note: It's time to look back at the top Houston innovation news from the second half of May 2025. From exciting VC raises to major manufacturing facilities in the works, here are the most-read InnovationMap stories from May 16-30.

1. Pharmaceutical giant looks to bring $5.9 billion facility to Houston

Eli Lilly is looking to build an active pharmaceutical ingredient manufacturing facility at Generation Park. Rendering courtesy of McCord

Pharmaceutical company Eli Lilly and Company is looking to build a $5.9 billion active pharmaceutical ingredient (API) manufacturing facility in Houston, according to a recent filing with the state of Texas.

The proposal states that the project plans to employ 604 full-time direct employees at the site upon ramp-up completion. Construction is projected to begin in 2026, with a completion target of 2030 and commercial operations beginning in 2031. Continue reading.

2. Houston VC firm closes $21M fund for underrepresented founders

Zach Ellis, founder and general partner of South Loop Ventures, which recently closed its debut fund. Photo via LinkedIn

Houston-based South Loop Ventures recently closed its debut fund for more than $21 million, led by investments from Rice Management Company and Chevron Technology Ventures.

The funds will go toward teams with at least one underrepresented founder of color working in the energy, health, space, sports and fintech sectors. Additional investments came from The Great Commission Foundation of the Episcopal Diocese of Texas, Texas CapitalBank and others organizations. Continue reading.

3. Houston-founded startup raises $1.2M and moves headquarters to Detroit

ChurchSpace, founded in Houston by Day Edwards and Emmanuel Brown, is moving to Detroit. Photo courtesy ChurchSpace.

Houston-founded ChurchSpace, known as the Airbnb for churches, has formed an official partnership with the City of Detroit and will relocate its headquarters.

The announcements come as the company successfully closed a $1.2 million oversubscribed funding round. The round was led by California-based Black Ops Ventures, with participation from Michigan Rise and Dug Song of Minor Capital, who is also the founder of the Song Foundation, another Michigan-based organization. Continue reading.

4. Houston aerospace co. soars with first U.S. test flight of hypersonic engine

Venus Aerospace successfully completed the flight test of its hypersonic engine, the first of an American-developed engine of its kind. Photo courtesy Venus Aerospace

Houston-based Venus Aerospace successfully completed the first U.S. flight test of its proprietary engine at a demonstration at Spaceport America in New Mexico.

Venus’ next-generation rotating detonation rocket engine (RDRE) is supported by a $155,908 federal Small Business Innovation Research (SBIR) grant from NASA and aims to enable vehicles to travel four to six times the speed of sound from a conventional runway. The recent flight test was the first of an American-developed engine of its kind. Continue reading.

5. Houston regenerative medicine company expands lab for future trials

FibroBiologics has opened a new 10,000-square-foot Houston lab to scale up research efforts and pave the way for in-house manufacturing. Photo via Fibrobiologics.com

A Houston regenerative medicine company has unveiled new laboratory space with the goal of expanding its pioneering science.

FibroBiologics uses fibroblasts, the body’s most common type of cell, rather than stem cells, to help grow new cells. With its new space, the publicly traded company, which has more than 240 patents issued or pending, will be even better equipped to power forward with its research. Continue reading.

Houston university to launch artificial intelligence major, one of first in nation

BS in AI

Rice University announced this month that it plans to introduce a Bachelor of Science in AI in the fall 2025 semester.

The new degree program will be part of the university's department of computer science in the George R. Brown School of Engineering and Computing and is one of only a few like it in the country. It aims to focus on "responsible and interdisciplinary approaches to AI," according to a news release from the university.

“We are in a moment of rapid transformation driven by AI, and Rice is committed to preparing students not just to participate in that future but to shape it responsibly,” Amy Dittmar, the Howard R. Hughes Provost and executive vice president for academic affairs, said in the release. “This new major builds on our strengths in computing and education and is a vital part of our broader vision to lead in ethical AI and deliver real-world solutions across health, sustainability and resilient communities.”

John Greiner, an assistant teaching professor of computer science in Rice's online Master of Computer Science program, will serve as the new program's director. Vicente Ordóñez-Román, an associate professor of computer science, was also instrumental in developing and approving the new major.

Until now, Rice students could study AI through elective courses and an advanced degree. The new bachelor's degree program opens up deeper learning opportunities to undergrads by blending traditional engineering and math requirements with other courses on ethics and philosophy as they relate to AI.

“With the major, we’re really setting out a curriculum that makes sense as a whole,” Greiner said in the release. “We are not simply taking a collection of courses that have been created already and putting a new wrapper around them. We’re actually creating a brand new curriculum. Most of the required courses are brand new courses designed for this major.”

Students in the program will also benefit from resources through Rice’s growing AI ecosystem, like the Ken Kennedy Institute, which focuses on AI solutions and ethical AI. The university also opened its new AI-focused "innovation factory," Rice Nexus, earlier this year.

“We have been building expertise in artificial intelligence,” Ordóñez-Román added in the release. “There are people working here on natural language processing, information retrieval systems for machine learning, more theoretical machine learning, quantum machine learning. We have a lot of expertise in these areas, and I think we’re trying to leverage that strength we’re building.”

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