pedal to the metal

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

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.

Trending News

Building Houston

 
 

With the consumer price index rising 9.1 percent since last year, many Americans are evaluating new employment opportunities with better pay. However, employees would be wise to consider the risks of accepting a new position in the face of inflation and a possible recession, which could leave employers unable to sustain higher wages and generous benefits.

As a safer option in the longterm, employees may wish to ask for a raise from their current management, yet many do not know how to start the conversation. By understanding best practices for negotiations, employees can improve their chances of obtaining a pay raise without undermining relationships.

Understand the risks of job-hopping

Conventional wisdom suggests that job hopping can result in higher salary increases than an annual raise. During the pandemic, many employees took advantage of labor market shortages to secure new positions for higher pay. However, job hopping presents risks, particularly in an uncertain economic environment. Companies may institute “last in, first out” layoffs, leaving recent hires unemployed.

Even in strong economic conditions, job-hoppers face uncertain outcomes. When employees leave a company, they may leave behind teammates, mentors, client partnerships and friendships years in the making. These relationships can redevelop in a new organization, but employees may find themselves in an unfamiliar setting, facing unrealistic expectations or unexpected challenges that were not clear during the interview process.

Prepare ahead of time

Before approaching management with a request for a raise, employees should understand their own financial needs and how much additional compensation would improve their finances. If inflation has caused financial strain, employees should gather recent data on inflation, including the consumer price index, to share with management. The more information employees can offer about changing economic conditions, the more management will understand and accept their position.

Focus on the positive

Employees should begin a conversation about salary with praise for the organization and a reiteration of their commitment to the team. By beginning on a positive note, employees set the tone for a mutually productive conversation. Although employees may view salary negotiations as adversarial across the table, productive negotiations are a conversation with both employee and employer on the same team.

Likewise, while employees may worry about looking greedy, employees should not let that fear prevent them from opening the conversation. Employers also understand that employees work to meet their financial needs. While employers may face budget constraints or other considerations in salary allocation, strong management also recognizes the importance of nurturing growth among employees, both in compensation and job responsibilities.

Nonetheless, employees should focus the discussion on broader economic conditions like inflation, not on their personal budget items. By acknowledging the economic environment outside of the employer’s control, employees can then respectfully request their salary be adjusted for inflation.

Employees with a record of strong results can also gather data or performance reviews to demonstrate their contributions to the team beyond the expectations of their role. In doing so, employees can frame a salary increase as a celebratory recognition of the mutually successful partnership between employee and employer and an investment in the relationship.

Be flexible if negotiations stall

If employers decline to adjust an employee’s salary for inflation, employees should not give up on negotiating additional compensation or benefits. Rather than a pay raise, employees can ask for reimbursement for gas mileage or additional remote days to cut down on their commutes. If management declines a pay raise based on timing, employees can acknowledge that management may face budgetary constraints, remaining flexible but firm. For instance, a compromise may involve revisiting the discussion in three to six months.

As employees face record-breaking inflation, it remains critical to consider the risks of departing one role for another. By implementing best practices in salary negotiations, employees can secure a salary increase that matches inflation, avoid the uncertainty of job-hopping and invest in the future at their current company.

------

Jill Chapman is a senior performance consultant with Insperity,a leading provider of human resources and business performance solutions.

Trending News